STONY BROOK, N.Y. - Applied DNA Sciences Inc . (NASDAQ:APDN), a provider of molecular technologies, announced the approval of all proposed items during its annual meeting of stockholders held today. Shareholders cast their votes on several key issues, including the election of directors, the ratification of the company's independent auditor, and the approval of a potential reverse stock split.
The election of six directors to serve until the 2025 annual meeting resulted in James A. Hayward, Robert B. Catell, Joseph D. Ceccoli, Yacov A. Shamash, Sanford R. Simon, and Elizabeth Schmalz Shaheen securing their positions with a majority of votes. The details of the votes were as follows: Hayward received 2,364,477 for and 905,861 withheld; Catell received 2,384,561 for and 885,777 withheld; Ceccoli received 2,384,568 for and 885,770 withheld; Shamash received 2,382,506 for and 887,832 withheld; Simon received 2,383,486 for and 886,852 withheld; Shaheen received 2,380,507 for and 889,831 withheld. All directors faced a significant number of broker non-votes, which totaled 1,942,975 for each candidate.
Marcum LLP was ratified as the company's independent registered public accounting firm for the fiscal year ending September 30, 2024, with 4,411,771 votes for, 649,039 against, and 152,503 abstentions.
Additionally, the board was granted discretionary authority to amend the company's certificate of incorporation to authorize a reverse stock split of common stock, at a ratio in the range from one-for-five to one-for-fifty. This proposal received 3,700,381 votes for, 1,229,326 against, and 283,606 abstentions.
The shareholders also approved the exercisability of certain common stock purchase warrants and the issuance of the common stock underlying such warrants, which were issued in connection with a securities offering on May 28, 2024. The vote tally for this proposal was 2,222,880 for, 989,536 against, 57,922 abstentions, and 1,942,975 broker non-votes.
Each proposal was approved based on the majority of votes received at the Annual Meeting. The company's leadership expressed satisfaction with the outcomes, which they believe will support Applied DNA Sciences' strategic initiatives and governance practices.
In other recent news, Applied DNA Sciences has regained compliance with Nasdaq's minimum bid price requirement, ensuring its continued listing on the stock exchange. The company has also secured a significant $500,000 order for its Linea DNA product, marking a continuation of a decade-long partnership with a global in vitro diagnostics manufacturer. Furthermore, Applied DNA has expanded its clinical testing services to detect both Clade I and Clade II of the Mpox virus.
The company has been granted a subcontract to support cotton traceability in Pakistan, a project aimed at reducing child and forced labor in global supply chains. Additionally, Applied DNA has submitted a validation package to the New York State Department of Health for the expanded use of its Linea Mpox Virus 1.0 Assay.
In partnership news, Applied DNA has joined forces with Indus Group, integrating the CertainT traceability platform into Indus's non-home textile products. However, H.C. Wainwright has lowered their price target for Applied DNA Sciences shares, while maintaining a Buy rating.
A public offering is expected to generate approximately $12 million in gross proceeds. Lastly, the company received approval from the New York State Department of Health for its pharmacogenomic testing service, TR8, and plans to implement a reverse stock split to comply with Nasdaq's listing rules.
InvestingPro Insights
Applied DNA Sciences Inc. (NASDAQ:APDN) faces significant financial challenges, as reflected in the latest InvestingPro data. The company's market capitalization stands at a modest $6.63 million, with a negative P/E ratio of -1.27 for the last twelve months as of Q3 2024, indicating ongoing profitability issues. This aligns with an InvestingPro Tip that the company is not expected to be profitable this year.
The company's revenue has seen a dramatic decline, with a 78.96% decrease over the last twelve months to Q3 2024, totaling just $3.4 million. This steep drop in revenue supports another InvestingPro Tip that analysts anticipate sales decline in the current year. Despite these challenges, APDN holds more cash than debt on its balance sheet, which could provide some financial flexibility as the company navigates its current difficulties.
The approval of a potential reverse stock split at the annual meeting could be seen as a strategic move to address the stock's poor performance. InvestingPro data shows that APDN's stock price has fallen significantly, with a one-year total return of -96.16% as of the latest data. This dramatic decline underscores the InvestingPro Tip that the stock has taken a big hit over the last week and has fared poorly over the last month.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for APDN, providing a deeper understanding of the company's financial health and market position.
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