In a recent special meeting, shareholders of Eyenovia (NASDAQ:EYEN), Inc., a pharmaceutical company specializing in preparations, voted in favor of a reverse stock split and an increase in stock reserves for incentive plans, according to a filing with the Securities and Exchange Commission (SEC). The company, currently trading at $0.05 with a market capitalization of $6.29 million, has seen its stock decline by over 96% in the past year, according to InvestingPro data.
On January 21, 2025, Eyenovia held a virtual special meeting where a quorum of over 52% of eligible shares was present. The key decision approved was the amendment to the company's Certificate of Incorporation to effect a reverse stock split at a ratio of between 1:40 and 1:80. This move was supported by 45,289,590 votes for, with 12,572,704 against and 409,963 abstentions. InvestingPro analysis indicates the company is currently experiencing rapid cash burn and faces challenges with short-term obligations exceeding liquid assets.
Additionally, shareholders approved an amendment to Eyenovia’s 2018 Omnibus Stock Incentive Plan to reserve an extra 350,000 shares of common stock for issuance. The vote for this measure saw 22,969,009 in favor, 8,945,460 against, and 527,690 abstentions.
The third approval was for the potential issuance of up to 73,029,273 shares of common stock upon the exercise of Purchase Warrants as per Nasdaq Listing Rule 5635(d). This proposal received 23,097,136 votes for, 8,735,529 against, and 609,494 abstentions.
The results of the meeting are a significant step for Eyenovia as it continues to navigate the pharmaceutical industry's dynamic landscape. With an overall WEAK financial health score according to InvestingPro, the company faces significant challenges ahead. Subscribers to InvestingPro can access 15+ additional key insights and a comprehensive Pro Research Report, offering deeper analysis of the company's financial position and future prospects.
In other recent news, Eyenovia, Inc. has secured significant funding through a series of direct offerings and warrant repricing and exercise. The pharmaceutical company raised approximately $1.9 million and $1.3 million in two separate offerings and expects to receive an additional $1 million from the exercise of existing warrants. This funding is earmarked for general corporate purposes, including the further development of its Optejet device and commercialization efforts for products like Mydcombi and clobetasol propionate.
The company is also exploring strategic alternatives, including a potential sale, merger, or asset sale, with the help of financial advisor Chardan. As part of its financial restructuring, Eyenovia has negotiated a deferral of principal and interest payments on its outstanding debt with Avenue Capital Management II, L.P. until February 2025.
However, Eyenovia is facing the threat of delisting from the Nasdaq due to non-compliance with the exchange's minimum bid price requirement. In response, the company intends to appeal the decision and has proposed a reverse stock split to elevate the stock price above Nasdaq's minimum bid price.
Amid these financial challenges, Eyenovia continues to advance its product development. The company is nearing Phase III efficacy data readout for MicroPine, has launched MydCombi and Clobetasol, and is working on its Gen 2 Optejet device.
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