In a recent move by Dolphin Entertainment , Inc. (NASDAQ:DLPN), currently trading at $1.01 with a market capitalization of $11.4 million, the company has amended its Series C Convertible Preferred Stock terms. This change, filed with the SEC today, was approved by shareholders earlier this week on Monday, January 21, 2025. According to InvestingPro data, the stock has experienced significant volatility, falling over 66% in the past year.
The amendment, which was voted on during a special meeting, alters the number of votes each share of the Series C stock is convertible into. Previously set at ten votes per share, the conversion rate has now been reduced to three votes per share. The decision was made with an overwhelming majority, receiving 25,341,116 votes in favor, 109,879 against, and 4,967 abstentions. InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 1.86.
Dolphin Entertainment, headquartered in Coral Gables, Florida, is a company operating in the personal services sector, specifically within the entertainment industry. The firm's recent amendment to its Articles of Incorporation comes as part of its ongoing corporate governance and capital structure management.
The updated Articles of Amendment, as per the SEC filing, will modify the voting power associated with the Series C Convertible Preferred Stock, potentially affecting shareholder voting dynamics. The change reflects the company's responsiveness to its shareholders and its commitment to maintaining a balanced governance structure.
In other recent news, Dolphin Entertainment has been making strategic financial moves. The company has extended the maturity date of its promissory notes to January 13, 2027, offering the note holder an extended investment horizon with a potentially advantageous conversion option. This amendment, which involves three notes with a total principal amount of $1,500,000, is part of Dolphin Entertainment's broader financial strategy.
In the same vein, Dolphin Entertainment recently reported robust growth in its Third Quarter 2024 Earnings Call. The company reported a 24.5% increase in Q3 revenue, reaching $12.7 million, and a marked improvement in adjusted operating income, turning a previous loss into a $492,000 gain. These results contribute to a year-to-date revenue boost of 26.6%, totaling $39.4 million, and set the stage for Dolphin to surpass the $50 million revenue mark for the full year while achieving positive adjusted operating income.
Despite the strong performance, the company reported a net loss of $8.7 million for Q3 2024. However, the company's CEO, Bill O'Dowd, expressed confidence in Dolphin Entertainment's future, with plans to increase his stake in the company. The company anticipates continued growth with strong Q4 performance expected.
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