HALIFAX, August 31, 2020 – Metamaterial Inc. (“Company” or “META”) (CSE: MMAT) a developer of high-performance functional materials and nanocomposites, today announced it has signed a ten-year lease for an approximately 53,000 square foot facility, which will host holography and lithography R&D labs and the next phase of META’s volume manufacturing. META expects to open the facility before the end of 2020, following leasehold improvements.
In 2019, META acquired from North, Inc. the 1st and 2nd generation roll-to-roll holographic manufacturing technology originally developed by Intel for their Vaunt AR glasses. Digi-Capital* projects the global virtual and augmented reality market will grow from over $13 billion this year to more than $67 billion by 2024. The Company believes it will be positioned to capture a significant portion of this market by being able to mass manufacture, on a cost-effective basis, the required holographic optical components for these markets.
The 2nd generation line is capable of 100,000+ units per month, to support AR (augmented reality) and other holographic products, such as automotive HUD displays, laser glare protection, optical filters, diffractive optics, and other photonic applications. Capacity could be increased to 200,000 units per month with the addition of a second, eight-hour shift. The modular nature of the 1st generation line would allow it to be used for either holography or as a development line for Rolling Mask Lithography (RML®) applications, such as transparent 5G antennas, de-icing/defogging, and EMI shielding.
“We are excited to take this important step towards opening one of the first high volume, advanced metamaterials manufacturing facilities globally. We believe this new facility will enable us to meet the initial requirements for high performance optical, electromagnetic, and conductive products from our growing list of customers and corporate development partners in aerospace, automotive and consumer electronic applications,” said George Palikaras, President and CEO, META.
META’s new facility is strategically located in Dartmouth, Nova Scotia. Close proximity to the Halifax International Airport and the Port of Halifax will provide META with global access to both suppliers and customers. With additional offices in London, England and in Pleasanton, California, the Company believes it is well positioned to work closely with customers and partners and attract talent from around the world. This new location also enables META to continue its collaboration with a number of Canada’s leading Universities and Colleges in Nova Scotia.
The term of the lease for the new facility is for ten years commencing on January 1, 2021. Commencing in September 2021, the Company will pay monthly basic rent of CAD $28,708 and additional rent for its proportionate share of operating costs and property taxes of CAD $24,910 per month.
In conjunction with signing the lease, the Company has entered into a loan agreement with the landlord in the amount of CAD $500,000 to fund leasehold improvements. The loan carries an interest rate of 5% per annum and is repayable in equal monthly blended payments of principal and interest over a period of seven years.
META is changing the way we use, interact and benefit from light. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. META has a growing patent portfolio with three core technologies; holographic, lithographic, and wireless sensing, designed for high volume applications. META is headquartered in Dartmouth, Nova Scotia and has offices in London, UK and Pleasanton, California.
This release includes forward-looking information within the meaning of Canadian securities laws regarding the Company and its business, which may include, but are not limited to, statements with respect to the business strategies and operational activities of the Company. Often but not always, forward-looking information can be identified by the use of words such as “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company, and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, market strategic and operational activities, and management’s ability to manage and to operate the business. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events, or otherwise.