Applied DNA Sciences fails to secure quorum at meeting

Published 15/02/2025, 00:30
Applied DNA Sciences fails to secure quorum at meeting

STONY BROOK, NY - Applied DNA Sciences Inc . (NASDAQ:APDN), a company specializing in testing laboratories currently trading at $0.17 per share with a market capitalization of $8.89 million, reported today that it was unable to establish a quorum during its reconvened special meeting of stockholders. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 3.36, though it has been quickly burning through cash. The meeting, initially held on January 23, 2025, and reconvened on Thursday, did not meet the required one-third of the company's issued and outstanding shares of common stock for a quorum as per the company's By-Laws.

Consequently, no actions were taken on the proposals presented at the Special Meeting. The company has now adjourned the meeting a second time, rescheduling it for February 28, 2025, at 11:00 a.m. The stock has faced significant challenges, with InvestingPro analysis showing a year-to-date decline of 14.61%, though current valuations suggest the stock may be undervalued based on Fair Value metrics. This adjournment is intended to allow for additional solicitation of stockholders and to provide them with more time to vote on the sole proposal under consideration at the Special Meeting.

The proposal in question relates to a previously reported offering that Applied DNA Sciences closed on October 31, 2024. This offering included a registered direct public offering and concurrent private placement of common stock, series C and D common stock purchase warrants (Series Warrants), and placement agent warrants (Private Placement Warrants). The exercise of the Private Placement Warrants is contingent upon receiving stockholder approval in accordance with the rules of the Nasdaq Capital Market (Warrant Stockholder Approval).

If the company does not obtain the Warrant Stockholder Approval at the upcoming adjourned Special Meeting, it is obligated to convene another stockholder meeting to seek approval. This requirement is stipulated in the Securities Purchase Agreement related to the October offering.

The company's inability to reach a quorum underscores the challenges it faces in securing sufficient stockholder participation. Applied DNA Sciences has emphasized the importance of stockholder votes in meeting its obligations and advancing its strategic initiatives.

This information is based on a press release statement from Applied DNA Sciences Inc. and reflects the current state of affairs as reported in their SEC filing on February 14, 2025. For deeper insights into Applied DNA Sciences' financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, check out the full company analysis available on InvestingPro.

In other recent news, Applied DNA Sciences has reported its financial results for Q1 FY25, revealing increased revenue but also persistent operating losses. The company's revenue rose to $1.2 million, up from $891,000 in the previous year. However, Applied DNA also reported an operating loss of $3 million, albeit an improvement from the prior year's loss of $3.8 million. The company has also launched new products and initiated a clinical trial in AML therapy. In addition, a strategic restructuring has been undertaken, leading to a 20% reduction in the workforce. Future revenue forecasts for Applied DNA anticipate significant growth, with expectations set at $5.2 million for FY2025 and a substantial increase to $181.85 million by FY2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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