Streamline Health approves reverse stock split

Streamline Health Solutions Inc. (NASDAQ:STRM), a company specializing in computer integrated systems design, announced the approval of a reverse stock split following a Special Meeting of Stockholders held on September 19, 2024. The reverse stock split will be executed at a ratio between 1-for-5 and 1-for-15, as determined by the Board of Directors, to be effected at any time prior to October 4, 2024.

The proposal for the reverse stock split received overwhelming support from shareholders, with 50,952,491 votes for, 412,639 against, and 46,137 abstentions. This represents an affirmative vote from approximately 81% of the outstanding shares of common stock.

Additionally, shareholders approved a secondary proposal that allows for the adjournment of the Special Meeting to a later date, if necessary, to solicit additional proxies in the event of insufficient votes for the first proposal. This proposal saw 50,844,291 votes for, 540,375 against, and 26,601 abstentions.

The reverse stock split is a strategic move by Streamline Health Solutions Inc. to adjust the number of its shares in circulation. This corporate action does not change the company's market capitalization but alters the number of shares outstanding and the stock price accordingly. The exact ratio of the reverse stock split will be set at the Board's discretion within the approved range.

In other recent news, Streamline Health Solutions reported its second quarter financial results, noting a total revenue of $4.5 million, a decrease from $5.8 million in the same quarter the previous year.

Despite experiencing a churn that led to non-renewals totaling $2.8 million in SaaS Annual Contract Value (ACV), the company cited a 21% growth in pro forma SaaS revenue for the first half of fiscal 2024. The booked SaaS ACV reached $13.6 million, with $10.7 million already implemented.

Streamline Health Solutions also reported a net loss for Q2 2024 of $2.8 million, with $3.5 million in cash and $12.5 million in total debt. In terms of future expectations, the company anticipates a revenue decline of $300,000 in Q3 2024 but expects recovery to $4.5 million in Q4. A significant revenue growth is projected for fiscal 2025, along with improved cash flow.

In addition to these financial updates, Streamline Health Solutions outlined strategic priorities, including a displacement campaign for the eValuator tool, strengthening the Oracle (NYSE:ORCL) partnership, developing new channel partnerships, and maximizing upsells and cross-sells within the existing client base.

InvestingPro Insights

As Streamline Health Solutions Inc. (NASDAQ:STRM) navigates through its reverse stock split strategy, current InvestingPro data and tips offer a deeper financial perspective on the company's standing. With a market capitalization of $11.84 million and a negative P/E ratio of -0.57, indicating that the company is not currently profitable, investors are looking at a firm that faces significant financial challenges. The revenue for the last twelve months as of Q2 2025 stands at $20.3 million, but it's important to note a decline of -15.64% in revenue growth during the same period. This contraction is further emphasized by a quarterly revenue growth decline of -22.43%.

InvestingPro Tips suggest that Streamline Health Solutions is operating with a significant debt burden and is quickly burning through cash, which could be concerning for investors. The stock has experienced substantial volatility, with price reductions over various time frames, including a -29.11% one-week total return and a staggering -79.97% return over the last year. The stock's price is currently at 19.23% of its 52-week high, and analysts do not anticipate the company will be profitable this year.

For investors seeking a comprehensive analysis, there are additional InvestingPro Tips available, which could provide further insights into the company's future prospects. These tips are part of the InvestingPro suite of tools, designed to help investors make more informed decisions. To explore these additional tips and data metrics for Streamline Health Solutions, visit https://www.investing.com/pro/STRM.

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