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Cheetah Net Supply Chain Service Inc. (NASDAQ:CTNT), a wholesale motor vehicle and parts supplier, announced significant corporate developments following a special stockholders meeting held on September 30, 2024. The company's stockholders voted to approve a reverse stock split and amendments to the stock incentive plan.
The approved reverse stock split will see the company's issued common stock consolidated at a ratio ranging from one-for-ten to one-for-thirty, as will be determined by the board of directors. This action is aimed at increasing the market price per share of the company's common stock, potentially improving marketability and liquidity.
Additionally, stockholders sanctioned the Amended and Restated 2024 Stock Incentive Plan, which removes the maximum number of shares for automatic increase available for grants. This amendment is expected to provide the company with greater flexibility in attracting and retaining top talent through equity-based compensation.
The company's Fourth Amended and Restated Articles of Incorporation were also approved, paving the way for the implementation of these changes. The results of the votes were decisive, with the reverse stock split receiving over 129 million votes in favor, and the amendments to the stock incentive plan gaining support from approximately 127 million votes.
These corporate actions come at a time when Cheetah Net Supply Chain Service Inc. is positioning itself for strategic growth and operational efficiency. The company's leadership, under CEO Huan Liu, has expressed a commitment to enhancing shareholder value and ensuring the company's competitive edge in the industry.
The information provided is based on the company's recent SEC filing, and the changes are expected to take effect in accordance with the stipulations of the filing and subsequent board decisions.
In other recent news, Cheetah Net Supply Chain Service Inc. has experienced significant changes. The company's CFO, Robert Cook, has resigned, with CEO Tony Liu stepping in as interim CFO. Cheetah Net has also announced the departure of board member Vladimir Gavrilovic and the appointment of Huibo Deng as a director and the new chair of the audit committee.
In terms of financial developments, the company has initiated two follow-on public offerings of Class A common stock, expecting to raise approximately $1.49 million and $8,190,200 respectively before deducting fees and expenses. FT Global Capital, Inc. and AC Sunshine Securities LLC are managing these offerings.
The company also faces potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement, but has been granted a grace period until January 7, 2025, to regain compliance.
Cheetah Net has signed a new lease agreement for office space in Irvine, California, as part of its expansion strategy. These are all recent developments in Cheetah Net's ongoing business operations.
InvestingPro Insights
Cheetah Net Supply Chain Service Inc.'s recent corporate actions, including the approved reverse stock split, come at a critical time for the company. According to InvestingPro data, CTNT's stock price has fallen significantly over the last year, with a one-year price total return of -88.32%. This steep decline underscores the potential motivation behind the reverse stock split, which aims to boost the stock's market price and improve its marketability.
InvestingPro Tips highlight that CTNT holds more cash than debt on its balance sheet, which could provide some financial flexibility as the company implements these changes. However, the company is not currently profitable, with a negative operating income of -1.12M USD for the last twelve months as of Q2 2024.
The approval of the Amended and Restated 2024 Stock Incentive Plan aligns with the company's need to attract and retain talent, especially given its challenging financial position. With revenue growth showing a significant decline of -59.8% in the last twelve months, CTNT faces the task of reversing this trend to improve its market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for CTNT, providing deeper insights into the company's financial health and market performance.
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