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ATLANTA - A group of Vaxart, Inc. (OTC:VXRT) stockholders is challenging the company’s board over what they describe as delay tactics regarding a proposed reverse stock split vote. The biotech company, currently trading at $0.38 and showing a -42.61% year-to-date return, faces significant financial challenges according to InvestingPro data, with short-term obligations exceeding liquid assets and a concerning current ratio of 0.6.
The self-titled "Concerned Vaxart Stockholders," who collectively own more than 2.5 million shares, expressed frustration after the company’s board abruptly adjourned a September 5 special meeting without releasing voting results, despite achieving a quorum with approximately 64.25% of outstanding common stock represented. With a market capitalization of just $86.8 million, the company’s financial health score on InvestingPro indicates significant challenges ahead.
This postponement marks the second time Vaxart’s board has delayed a reverse stock split vote. A previous proposal was rejected on June 13, with 59.1% of votes cast against the measure after two meeting adjournments.
The stockholder group questioned the company’s August 29 statement that Nasdaq had granted a compliance extension contingent upon stockholder approval of a reverse stock split by September 5 – a deadline that has now passed without the company addressing the missed condition.
In a September 8 press release, Vaxart justified the adjournment by citing the need for stockholders to consider recent board composition changes and potential governance modifications, without providing specific details.
"We believe it is inappropriate for the Company to tease potential further announcements seemingly in the hope of swaying additional support for the reverse stock split," said Daniel Houle, spokesperson for the concerned stockholders.
The investor group is demanding immediate transparency regarding the voting results, Nasdaq’s actual relisting conditions, and details about planned governance changes at the company.
The special meeting has been rescheduled for September 19, according to the company’s statement based on the press release. Despite these challenges, analysts project 3.92% revenue growth for FY2025. For deeper insights into Vaxart’s financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro.
In other recent news, Vaxart Inc. reported its Q2 2025 earnings, showing a notable revenue increase to $39.7 million, primarily due to a contract with the Biomedical Advanced Research and Development Authority (BARDA). Despite the revenue boost, the company’s earnings per share (EPS) registered a loss of $0.07, which was an improvement over the anticipated loss of $0.09. Additionally, Vaxart is planning to hold a virtual stockholder fireside chat to discuss a proposed reverse stock split and efforts to regain compliance with Nasdaq. Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have recommended that stockholders support the reverse stock split proposal. Recently, Vaxart also furnished a transcript of a previous stockholder fireside chat as part of its latest SEC filing, although it is not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
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