WEBSTER, TX - Nauticus Robotics, Inc. (NASDAQ:KITT), a company specializing in general industrial machinery with a market capitalization of $12.69 million, announced today that it has successfully secured stockholder approval for several key proposals during a special meeting held on Wednesday. According to InvestingPro data, the company operates with significant debt obligations and faces challenges with cash burn rates.
At the meeting, stockholders voted in favor of two proposals under Nasdaq Rule 5635. The first permits the issuance of common stock upon conversion of the Series A Convertible Preferred Stock, as outlined in the Exchange Agreement dated November 4, 2024.
The second authorizes the issuance of common stock upon conversion of debt under the Company's Senior Secured Convertible Debentures due September 9, 2026. These approvals are pivotal for the company's financial restructuring and future growth plans, particularly given its total debt of $47.5 million and current ratio of 0.56. InvestingPro subscribers can access detailed financial health metrics and 19 additional key insights about KITT's financial position.
Additionally, the stockholders approved a proposal to adjourn the meeting to a later date if further solicitation and voting of proxies are necessary. However, a proposal to increase the authorized shares of the company's common stock from 625 million to 5 billion did not receive the required majority of all issued and outstanding common stock and was not approved. Despite these challenges, analysts anticipate revenue growth of 6.57% for the current fiscal year, according to InvestingPro forecasts.
The meeting saw a significant turnout with 57.39% of the company's outstanding common stock represented. The voting results for the issuance of shares upon conversion of preferred stock were 1,692,753 for, 629,740 against, and 20,441 abstaining. For the issuance of shares upon debt conversion, the results were 1,698,250 for, 624,641 against, and 20,043 abstaining.
The adjournment proposal received 2,770,421 votes for, 821,375 against, and 84,842 abstentions. The failed authorized share amendment garnered 1,362,788 votes for, 558,292 against, and a notable 1,755,558 abstentions.
John Symington, General Counsel for Nauticus Robotics, signed off on the report filed with the SEC. The company's business address is 17146 Feathercraft Lane, Suite 450, Webster, TX 77598, and the business phone is (281) 942-9069. This report is based on a press release statement.
In other recent news, Nauticus Robotics has been actively restructuring its financial strategy through several key developments.
The company filed a Form 8-K with the Securities and Exchange Commission, which included a legal opinion from Norton Rose Fulbright US LLP regarding its at-the-market equity offering. Nauticus Robotics also adjusted the conversion price of its outstanding loans to $1.59, aligning with its common stock's closing price.
In a significant equity transaction, Nauticus Robotics issued Series A preferred convertible stock to various institutional investors by exchanging senior secured convertible debentures and other outstanding amounts. As part of a Material Definitive Agreement, the company issued new Series A Preferred stock, restructuring its financial obligations and introducing a new class of preferred shares.
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