In a series of strategic moves, FOXO Technologies Inc. (NYSE American:FOXO) has entered into multiple agreements and made key changes to its executive compensation, according to a recent 8-K filing with the Securities and Exchange Commission. These developments unfolded on July 25, 2024, marking a significant shift in the company's advisory and management structure.
FOXO, a Delaware-based company specializing in commercial physical and biological research, signed a Corporate Development Advisory Agreement with C L Talent Inc. The agreement, which commenced on July 17, 2024, will leverage the consultant's expertise in health, wellness, and social media to advise FOXO on business opportunities and talent engagement for a 12-month term. In exchange for these services, FOXO is set to issue 1.5 million shares of Class A Common Stock, pending approval from the New York Stock Exchange American.
Furthermore, the company has engaged J.H. Darbie & Co., Inc. as a nonexclusive financial adviser through an Advisory Agreement and for exclusive services related to private placements. J.H. Darbie will receive 625,000 shares of Class A Common Stock as compensation for its advisory role and will have a right of first refusal for any company financing for six months post-engagement. Additionally, J.H. Darbie will be compensated with a nonrefundable fee of $30,000 in Class A Common Stock and a potential maximum fee of 2% for its services in private placements.
In executive compensation news, FOXO has superseded an interim employment agreement with a new Services Agreement with Mark White, which extends until July 31, 2026. White will receive monthly fees of $30,000, with an option to convert into equity, and will be reimbursed for business expenses and vehicle leasing costs. He will also be issued 2,000 shares of Series A Preferred Stock. The agreement outlines severance terms, including 24 months of monthly fees and expense reimbursements, should White's service be terminated without cause or upon a change of control.
InvestingPro Insights
As FOXO Technologies Inc. (NYSE American:FOXO) navigates through its strategic partnerships and executive compensation plans, it's important for investors to consider the financial landscape of the company. According to InvestingPro data, FOXO's market capitalization stands at a modest $2.68 million, reflecting the size and scale of its operations within the commercial physical and biological research sector. The company's revenue for the last twelve months as of Q1 2024 was reported at $0.14 million, which indicates a steep decline of 71.28% from the previous period. This contraction is mirrored in the company's gross profit margin, which is currently at 5.04%.
InvestingPro Tips highlight the stock's high volatility and its significant price decline over the past year, with a 1-year price total return of -89.84%. Additionally, the short-term obligations of FOXO exceed its liquid assets, which could signal potential liquidity risks. These financial metrics and stock performance indicators are essential for investors to consider when evaluating the company's future prospects, especially in light of the recent executive and advisory agreements.
For those looking to delve deeper into FOXO's financial health and stock performance, there are more InvestingPro Tips available, providing a comprehensive analysis of the company's market position and potential investment risks or opportunities. For additional insights and metrics, visit https://www.investing.com/pro/FOXO.
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