Netcapital Inc. shareholders approve key proposals at annual meeting

On September 25, 2024, Netcapital Inc., a finance services company, held its annual meeting of shareholders where several key proposals were put to vote. The meeting saw the re-election of five board members and the ratification of the company's independent registered public accounting firm for the fiscal year ending April 30, 2025.

Shareholders re-elected Martin Kay, Cecilia Lenk, Avi Liss, Steven Geary, and Arnold Scott as directors. Each director will serve until the next annual meeting or until their successors are elected, or in case of earlier resignation, removal, or death. The ratification of Fruci & Associates II, PLLC as the independent registered public accounting firm was also approved.

In advisory votes, shareholders approved the resolution on executive officer compensation and decided on a 1-year frequency for future non-binding votes on executive compensation. However, the proposal to amend the company's bylaws was not approved.

Additionally, an amendment to the Articles of Incorporation was passed to authorize 10,000,000 shares of "blank check" preferred stock. Shareholders also approved the issuance of common stock purchase warrants and placement agent warrants connected to the company's March 2024 public offering, in line with Nasdaq Listing Rule 5635(d).

Lastly, authorization was granted for the adjournment of the annual meeting if necessary to solicit additional proxies for the approval of the aforementioned proposals.

In other recent news, Netcapital Inc. has reported significant developments. The company announced a substantial decline in revenues for the full fiscal year 2024, with revenues decreasing by 42% to $4.95 million, mainly due to a reduction in consulting services for equity securities.

Despite this, Netcapital experienced growth in portal fee revenue and the average amount raised per offering on its funding platform.

The company also reported an operating loss of $3.44 million and a net loss of $4.98 million for fiscal 2024, with a reported loss per share of $0.41, contrasting with previous year's earnings per share of $0.63.

In response to these developments, CEO Martin Kay discussed initiatives to maintain and increase portal fee growth, focusing on attracting new issuers and leveraging digital marketing strategies.

In other recent developments, the company has successfully regained compliance with the Nasdaq Capital Market's minimum bid price requirement. This follows a period of concern for Netcapital, which had previously been warned by Nasdaq about its non-compliance due to the stock's failure to meet the $1.00 minimum bid price.

Finally, as part of Netcapital's long-term growth strategy, strategic initiatives such as the launch of a beta version of a secondary trading platform and the application for a broker-dealer license have been underscored by the company's CEO.

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