NEW HAVEN, Conn. - Precipio, Inc. (NASDAQ:PRPO), a specialty cancer diagnostics company, has urged its shareholders to vote their shares by 11 p.m. Eastern Time today to meet the quorum for its scheduled shareholder meeting on June 13, 2024. The company has announced that as of now, only 44% of shares have been voted, falling short of the 50% required to proceed with the meeting.
If the quorum is not met and the meeting is adjourned, Precipio estimates that the cost to reschedule could reach $100,000 due to the expenses associated with hiring a proxy solicitor, legal fees, and other administrative costs. The current shareholder meeting is operating with a budget of less than $5,000, making the potential additional costs substantial.
The management of Precipio is keen to avoid these unnecessary expenditures and emphasizes that shareholders can vote for or against the proposals, but it is crucial that they vote to avoid the financial burden of rescheduling.
Precipio specializes in the development of diagnostic products and services aimed at addressing cancer misdiagnoses. The company's mission is to improve diagnostic accuracy, laboratory workflows, and patient outcomes, thus reducing healthcare costs. Precipio operates a laboratory where it designs, tests, validates, and clinically uses its proprietary products, which are then commercialized to serve the global laboratory community.
InvestingPro Insights
As Precipio, Inc. (NASDAQ:PRPO) calls for shareholder action, investors may be looking closely at the company's financial health and market performance. With a market capitalization of 8.67 million USD, Precipio is a smaller player in the industry, yet it has shown notable revenue growth over the last twelve months as of Q1 2024, with an increase of 61.64%. This impressive growth figure may signal the company's potential to capitalize on its specialized cancer diagnostics niche.
However, it's important to consider that the company operates with a moderate level of debt and has been quickly burning through cash, with short-term obligations exceeding its liquid assets. These factors, highlighted by InvestingPro Tips, underscore the importance of efficient capital management for Precipio moving forward. Moreover, while analysts predict the company will be profitable this year, it has not been profitable over the last twelve months, reflecting the challenges it faces in achieving and sustaining profitability.
Investors should note that Precipio's stock price has performed poorly over the last decade, with a 1-year price total return as of mid-2024 standing at -37.21%. The company also does not pay a dividend, which may influence investment decisions for those seeking regular income streams.
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