Galecto, Inc. (NASDAQ:GLTO), a pharmaceutical company, announced the results of its annual meeting of stockholders held on June 20, 2024, where several key proposals were voted upon. The stockholders approved an amendment for a reverse stock split and ratified the appointment of EY Godkendt Revisionspartnerselskab as the company's independent auditor for the fiscal year ending December 31, 2024.
During the meeting, stockholders elected Anne Prener, M.D., as a Class I director to the Board of Directors, with her term extending to the 2027 Annual Meeting of Stockholders. Dr. Prener received 10,651,770 votes in favor and 711,618 votes withheld. Additionally, there were 5,840,793 broker non-votes for this election.
The reverse stock split proposal, which gives the Board of Directors the authority to enact a stock split at a ratio between 1-for-4 and 1-for-25 within one year of the annual meeting date, was approved with 15,283,182 votes for, 1,830,713 votes against, and 90,286 abstentions. This strategic move is aimed at increasing the market price of Galecto's common stock.
Furthermore, the stockholders ratified EY Godkendt Revisionspartnerselskab as the independent registered public accounting firm for the current fiscal year, with 16,927,703 votes for, 197,148 against, and 79,330 abstentions.
The annual meeting saw a turnout of 17,204,181 shares represented by valid proxy, out of a total of 27,112,697 shares entitled to vote.
Galecto, headquartered in Boston, MA, and incorporated in Delaware, specializes in the development of pharmaceutical preparations. The information presented in this article is based on the company's recent SEC filing.
In other recent news, Galecto, a biotech company, has experienced a decrease in its share target from $10.00 to $9.00, as reported by Oppenheimer. This adjustment comes after Galecto's first-quarter 2024 financial results, which showed operating expenses of $5.7 million and a cash balance of $27.2 million, expected to support the company's operations into 2025. The revision follows the company's Phase 2b GALACTIC-1 study of GB0139 for idiopathic pulmonary fibrosis (IPF) not meeting its primary endpoints. In response, Galecto plans to decrease operating expenses through further workforce reductions and research and development rationalization.
InvestingPro Insights
As Galecto, Inc. (NASDAQ:GLTO) navigates through its strategic initiatives, including the recent approval of a reverse stock split, a glance at real-time metrics and InvestingPro Tips offers a deeper financial perspective on the company's standing. With a modest market capitalization of $13.56 million, Galecto's financial health is reflected in its significant cash position relative to debt, suggesting a degree of financial flexibility. This is reinforced by a Price / Book ratio of 0.48 as of the last twelve months leading up to Q1 2024, indicating that the stock may be undervalued relative to the company's assets.
However, the company's challenges are evident, with an Operating Income of -$28.71 million and an EBITDA of -$28.45 million for the same period, signaling ongoing operational losses. Investors are also cautioned by the fact that Galecto's stock price has depreciated sharply, trading near its 52-week low and posting a one-year total return of -80.36%. Additionally, two InvestingPro Tips highlight critical considerations: Galecto's RSI suggests the stock is in oversold territory, and its liquid assets exceed short-term obligations, which may offer some risk mitigation for potential investors.
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