SAN DIEGO - Bionano Genomics , Inc. (NASDAQ:BNGO), currently valued at $20.9 million in market capitalization, announced today that its shareholders have approved two key proposals during the Special Meeting of Stockholders held on Monday.
The company, which specializes in laboratory analytical instruments, confirmed that the stockholders ratified the issuance of additional shares and a reverse stock split. According to InvestingPro data, the company faces significant challenges with rapidly depleting cash reserves and weak profit margins.
The first proposal, which passed with 7,103,569 votes for and 3,340,296 against, involved the approval of the issuance of up to 19,762,226 shares of common stock. These shares are issuable upon the exercise of certain Series C and Series D warrants connected to a private placement agreement dated October 30, 2024. The approval was necessary to comply with Nasdaq Listing Rule 5635(d).
The second proposal, which received 29,042,728 votes in favor and 12,825,869 against, was the approval of a series of alternate amendments to the company's Amended and Restated Certificate of Incorporation. This amendment allows the Board of Directors to implement a reverse stock split of the company’s common stock at a ratio between 1-for-25 and 1-for-75, at their discretion.
The decisions made at the Special Meeting are part of Bionano Genomics' strategic initiatives to strengthen its financial structure and market position, coming at a crucial time when the stock has declined 84.6% over the past year.
The exact ratio and timing for the reverse stock split will be determined by the Board of Directors based on market conditions and other factors. InvestingPro subscribers have access to 13 additional key insights about BNGO, including detailed analysis of its financial health score of 1.75 (Weak) and comprehensive valuation metrics.
In other recent news, Bionano Genomics shareholders approved a significant share issuance, enabling the exercise of previously issued warrants. This approval came during the company's 2024 Special Meeting of Stockholders and is expected to provide the company with additional capital. In financial developments, Bionano Genomics reported a 35% year-over-year decrease in its Q3 revenue, with earnings dropping to $6.1 million, primarily due to a decrease in clinical services. Nevertheless, the company experienced a 22% increase in the installed base of its optical genome mapping (OGM) systems.
Analyst firm BTIG maintained a neutral stance on Bionano Genomics shares, following the company's Q3 performance and strategic shift towards boosting consumable sales and cost reductions. The company's Q4 revenue is projected to range between $6 million and $7 million, with full-year revenue estimated at $28 million to $30 million.
Despite challenges posed by decreased valuation of spare parts and inventory, Bionano remains optimistic about the growth of consumables in 2025 and the upcoming rollout of the Ionic sample prep system. These are some of the recent developments concerning Bionano Genomics.
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