Avalon GloboCare Corp. (NASDAQ:ALBT), a company specializing in biological products, reported the outcomes of its 2024 annual meeting of stockholders on Monday. The meeting, which took place virtually on October 7, included votes on several critical corporate matters.
Shareholders elected seven directors to the company’s board, including Wenzhao Lu, David Jin, M.D., Ph.D., Lourdes Felix, Steven A. Sanders, William B. Stilley, III, Wilbert J. Tauzin II, and Tevi Troy. Each director will serve until the next annual meeting or until their successor is elected.
The appointment of M&K CPAS, PLLC as Avalon’s independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with overwhelming support.
Additionally, shareholders approved the issuance of common stock in excess of 19.99% of the outstanding shares, related to a securities purchase agreement and transaction documents dated around June 5, 2024. This move complies with Nasdaq listing rules and is considered a significant corporate action.
A notable change approved by the stockholders was a reverse stock split of the company's common stock, at a ratio between 1-for-2 and 1-for-15, to be determined at the discretion of the Board. This decision was made alongside the approval to decrease the number of authorized shares from 490,000,000 to 100,000,000, contingent upon and subsequent to the reverse stock split.
Lastly, the executive compensation for the company’s named executive officers received advisory approval from the shareholders.
These decisions are seen as strategic steps in the company's governance and financial management, reflecting shareholder support for the board's direction and oversight. This information is based on the latest 8-K filing with the Securities and Exchange Commission.
In other recent news, Avalon GloboCare Corp. has reported a significant change in its independent registered public accounting firm. The company's Audit Committee dismissed Marcum LLP and appointed M&K CPAS, PLLC as its new auditor. The change was made despite no disagreements on financial statements for the fiscal years 2023 and 2022. However, the company did disclose material weaknesses in its internal control over financial reporting.
Additionally, Avalon GloboCare received a non-compliance notice from Nasdaq due to a delay in filing its quarterly report. The company is actively working to regain compliance. In a separate development, Avalon GloboCare announced the U.S. launch of its KetoAir™ breathalyzer, a device aimed at ketogenic health management.
In other recent developments, La Rosa Holdings Corp. appointed Lourdes Felix, former CEO of BioCorRx Inc., to its Board of Directors. These are the recent developments for both Avalon GloboCare and La Rosa Holdings.
InvestingPro Insights
Recent InvestingPro data paints a challenging picture for Avalon GloboCare Corp. (NASDAQ:ALBT). The company's market capitalization stands at a modest $3.36 million, reflecting its small-cap status. This aligns with the shareholders' approval of a potential reverse stock split, which could be aimed at boosting the share price and maintaining Nasdaq listing requirements.
InvestingPro Tips highlight that ALBT's stock has "fared poorly over the last month" and has "fallen significantly over the last year," with a one-year price total return of -72.6%. This poor performance may have influenced shareholders' decisions during the annual meeting, particularly regarding the approval of executive compensation and the potential reverse stock split.
The company's financial health appears precarious, with InvestingPro data showing a negative revenue of -$7.53 million for the last twelve months as of Q2 2024. This is further underscored by an InvestingPro Tip indicating that ALBT is "not profitable over the last twelve months." These financial challenges likely factored into the shareholders' approval of strategic moves such as the potential stock split and reduction in authorized shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into ALBT's financial situation and market performance.
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