PALO ALTO, CA - 180 Life Sciences Corp. (NASDAQ:ATNF) has announced the expansion of its stock incentive plan following approval from the company’s stockholders at the Annual Meeting held on Thursday. The Third Amendment to the 180 Life Sciences Corp. 2022 Omnibus Incentive Plan (OIP) increases the maximum number of shares available for issuance from 223,679 to 1,000,000.
The announcement comes as the company’s stock has experienced significant volatility, with a 33% decline in the past week and a current market capitalization of $3.84 million. According to InvestingPro, the stock shows high price volatility, with 10+ additional real-time insights available to subscribers.
This expansion was first approved by the Board of Directors on October 29, 2024, and was contingent on stockholder approval, which has now been granted. The OIP, as amended, allows for a variety of awards including performance awards, restricted stock, stock options, and other stock-based incentives to employees, non-employee directors, and consultants of the company and its subsidiaries.
The increase in the share limit aims to provide a more robust incentive for performance and retention, reflecting the company’s commitment to attracting and maintaining top talent. The OIP is designed to align the interests of participants with those of the company’s stockholders.
In addition to the expansion of the stock incentive plan, stockholders at the Annual Meeting voted on several other key proposals. These included the election of Class II directors, advisory approval of executive compensation, and the issuance of common stock upon conversion of Series B Convertible Preferred Stock and exercise of certain outstanding warrants, all of which were approved.
The approval of the issuance of additional common stock is in compliance with Nasdaq Listing Rules 5635(a) and (b). As a result, the company’s outstanding Series B Convertible Preferred Stock is now convertible into common stock at a fixed ratio, and certain warrants are now exercisable.
The approval of these proposals is a significant step for 180 Life Sciences Corp. as it continues to grow and incentivize its workforce. InvestingPro analysis indicates the company faces financial challenges, with a current ratio of 0.19 and negative EBITDA of $6.29 million in the last twelve months.
The company’s next earnings report is expected on March 26, 2025. The information disclosed is based on the company’s 8-K filing with the SEC. Get detailed financial health scores and comprehensive analysis with an InvestingPro subscription.
In other recent news, 180 Life Sciences Corp. has made significant strides in its business operations. The company announced a securities purchase agreement with institutional investors, planning to sell 1.2 million common stock shares, with an expected gross yield of about $2.9 million. The company also disclosed the resignation of CFO Omar Jimenez. Interim CEO Blair Jordan is filling the role of principal financial and accounting officer.
180 Life Sciences Corp. has set the date for its 2024 Annual Meeting of Shareholders and has expanded its board with the appointment of tech executive Jay Goodman. The company entered into a warrant inducement agreement, resulting in the full cash exercise of existing warrants and the issuance of new ones, generating $3.32 million in gross proceeds.
In the biotechnology field, the company disclosed preliminary findings of a clinical pharmacology study, where one of its cannabidiol (CBD) formulations outperformed the FDA-approved epilepsy drug, Epidiolex. The company has also regained compliance with Nasdaq’s minimum stockholders’ equity requirement.
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