In a recent SEC filing, FOXO Technologies Inc. (NYSE American: FOXO), a micro-cap company with a market value of approximately $4 million specializing in commercial physical and biological research, disclosed that its shareholders have approved a series of financial maneuvers related to the company's debt and equity structure.
According to InvestingPro data, the company faces significant financial challenges with a current ratio of just 0.08, indicating potential liquidity concerns. The shareholder consent was given through a majority written action on Friday.
The shareholders sanctioned the conversion of 15% Senior Promissory Notes, amounting to $3,458,000, into Series B Cumulative Convertible Redeemable Preferred Stock, as per an amendment previously agreed upon on October 18, 2024.
With total debt of approximately $35.7 million weighing on its balance sheet, this conversion represents a crucial step in the company's financial restructuring efforts. This conversion is scheduled to take effect on the second business day following the approval, in compliance with the New York Stock Exchange American's listing rules.
Additionally, the issuance of new shares of Series B Preferred Stock, in exchange for the Senior PIK Notes, was approved. Shareholders also consented to the issuance of Class A Common Stock shares beyond the 19.99% threshold of the company's current outstanding shares, which will occur when the Series B Preferred Stock is converted into Class A Common Stock.
The affirmative vote for these proposals came from approximately 67% of the voting-eligible shares as of the date of the report. FOXO Technologies plans to send a definitive information statement to all stockholders to provide further details on the matter.
The actions are part of the company's strategic financial management, aiming to streamline its capital structure. With negative EBITDA of -$6.63 million in the last twelve months, these moves are crucial for the company's survival. InvestingPro subscribers have access to 10 additional key insights about FOXO's financial health and future prospects.
This SEC filing indicates the company's efforts to address its debt obligations and to prepare for future operations. The information is based on the latest 8-K filing by FOXO Technologies with the Securities and Exchange Commission.
In other recent news, FOXO Technologies has seen significant developments in its corporate structure and financial strategies. The company secured shareholder approval for the issuance of Class A Common Stock upon conversion of its Series A Preferred Stock, a move that could potentially lead to a "Change of Control" as per NYSE American Rules. FOXO Technologies also amended its Certificate of Incorporation, introducing a beneficial ownership limitation clause to prevent any one investor from gaining disproportionate control.
The company's Annual General Meeting concluded with the re-election of its board of directors and the ratification of Kreit & Chiu CPA LLP as its independent registered public accounting firm. Furthermore, FOXO Technologies regained compliance with NYSE American LLC continued listing standards, ending the risk of delisting.
In further developments, the company's stockholders approved a reverse stock split aimed at improving marketability and compliance with NYSE American listing requirements. The company also finalized the acquisition of Rennova Community Health (NYSE:CYH), Inc., expanding its presence in the healthcare sector. Amid these developments, FOXO Technologies has shown impressive revenue growth of 196% over the last twelve months.
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