FOXO Technologies Inc. (NYSE American: FOXO), a micro-cap commercial physical and biological research company with a market capitalization of approximately $4 million, announced today that it received shareholder approval for the issuance of Class A Common Stock upon conversion of its Series A Preferred Stock.
According to InvestingPro data, the company's stock currently trades at $0.23, showing significant volatility with a beta of 3.5. This approval was part of the resolutions passed at the Special Meeting of Shareholders held on Thursday.
The meeting, which saw a 33.51% turnout of votes based on shares entitled to vote as of the record date of January 3, 2025, reached quorum and proceeded with the voting process. Two key proposals were put forward for shareholder consideration. InvestingPro analysis indicates the company faces significant financial challenges, with a current ratio of 0.08, suggesting potential liquidity concerns.
The first proposal, which addressed the issuance of shares of Class A Common Stock upon conversion of the Series A Preferred Stock, was approved with 9,188,041 votes in favor, 103,224 against, and 670,699 abstentions. This issuance is significant as it could amount to more than 20% of the company's Class A Common Stock outstanding when the Series A Preferred Stock was authorized. Additionally, the voting terms may lead to a "Change of Control" as per NYSE American Rules.
The second proposal, which would have allowed for the adjournment of the Special Meeting to solicit additional proxies if needed, also passed with 9,795,392 votes for, 130,453 against, and 36,119 abstentions. However, the company stated that there was no need to adjourn the meeting as the necessary votes for the proposals were already secured.
This corporate action reflects the company's compliance with NYSE American Rule 713, which requires shareholder approval for such significant stock issuances. The affirmative vote on these items demonstrates shareholder support for FOXO Technologies' strategic financing initiatives.
The company, headquartered in Minneapolis, Minnesota, is known for its research services in the commercial physical and biological sectors. Despite challenges, FOXO has achieved impressive revenue growth of 196% over the last twelve months. With this latest development, FOXO Technologies continues to align its operations with shareholder interests and regulatory requirements. InvestingPro subscribers have access to 8 additional key insights and detailed financial metrics that could help assess the impact of this corporate action.
In other recent news, FOXO Technologies has seen a significant 196% revenue growth over the last twelve months. The company has amended its Certificate of Incorporation, introducing changes to its preferred stock designation, a move aimed at preventing any one investor from gaining a disproportionate control of the company.
FOXO Technologies has also concluded its Annual General Meeting with the re-election of its board of directors and the ratification of Kreit & Chiu CPA LLP as its independent registered public accounting firm. Other recent developments include the company's return to compliance with the NYSE American LLC continued listing standards and the approval of a reverse stock split by its stockholders.
Additionally, the company has made amendments to its bylaws affecting shareholder meeting quorum requirements, lowering the requirement from a majority to one-third of outstanding shares. FOXO Technologies has also engaged J.H. Darbie & Co., Inc. as a nonexclusive financial adviser and signed a Corporate Development Advisory Agreement with C L Talent Inc. In a strategic move, the company has finalized the acquisition of Rennova Community Health (NYSE:CYH), Inc., broadening its presence in the healthcare sector.
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