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Abpro Holdings, Inc. (NASDAQ:ABP), a biotechnology company specializing in biological products, announced today the approval of a significant issuance of common stock to YA II PN, LTD., also known as Yorkville. This approval comes as a result of a special meeting of stockholders held on Monday, where the proposal was passed with a substantial majority. According to InvestingPro data, the company faces significant financial challenges, with a weak financial health score of 1.44 and negative EBITDA of $10.83 million in the last twelve months.
The special meeting, convened to consider the Yorkville Share Issuance Proposal, saw the participation of approximately 50.7% of the eligible voting shares. The proposal was detailed in a definitive proxy statement filed with the SEC on March 24, 2025. It sought stockholder approval under Nasdaq Listing Rule 5635(d) for the issuance of shares that may exceed 20% of the company's issued and outstanding common stock as of the Standby Equity Purchase Agreement (SEPA) date, October 30, 2024. The timing is crucial as InvestingPro data shows the stock has declined by 97.25% over the past six months, with the share price falling from its 52-week high of $13 to just $0.34.
The vote resulted in a decisive approval, with 26,359,504 votes in favor, 2,827 against, and 1,114 abstentions. There were no broker non-votes recorded. This outcome authorizes Abpro Holdings to issue shares to Yorkville in accordance with the terms set out in the SEPA.
This transaction is significant for Abpro Holdings as it could potentially dilute the current shareholders' equity by more than 20%. The approval indicates that the stockholders are in favor of the company's strategic decision, despite concerning liquidity metrics revealed by InvestingPro, including a current ratio of 0.16 and short-term obligations exceeding liquid assets. InvestingPro subscribers have access to over 10 additional key financial insights about ABP.
The company's stock, ABP, and its warrants, ABPWW, are both listed on The Nasdaq Stock Market LLC. Abpro Holdings, headquartered in Woburn, MA, operates under the leadership of CEO Miles Suk, who signed off on the SEC filing dated Monday, April 8, 2025.
The approval of this stock issuance is a crucial step for Abpro Holdings as it continues to develop and expand its operations in the biotechnology field. The SEC filing, which provides the source of this information, does not disclose the specific reasons for the capital increase or the intended use of the proceeds from the share issuance to Yorkville.
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