In a recent move, The Beachbody Company, Inc. (NYSE:BODI), currently trading at $6.25 with a market capitalization of $43.5 million, has amended its bylaws to align with the new universal proxy rules established by the U.S. Securities and Exchange Commission (SEC). These changes, effective as of Thursday, December 12, were announced in a filing with the SEC. According to InvestingPro, the company has shown a notable 8.87% return over the past week, despite challenging market conditions.
The amendments to the company's bylaws, now known as the Second Amended and Restated Bylaws, address several aspects of proxy solicitation and stockholder meetings. One key update is the clarification that stockholders may authorize a proxy in a manner consistent with Rule 14a-19 under the Securities Exchange Act of 1934. This rule pertains to the use of universal proxy cards in contested elections of directors.
Additionally, in a move to avoid confusion during proxy solicitations, the company has mandated that any proxy cards distributed by stockholders soliciting proxies must be a color other than white, which is reserved exclusively for the Board of Directors' use.
Based on InvestingPro's Fair Value analysis, BODI currently appears undervalued, with 10+ additional exclusive insights available to subscribers, including detailed financial health metrics and growth projections.
In other recent news, The Beachbody Company has made significant amendments to its existing financing agreement, including changes to financial covenants and prepayment details. The company has also shifted from a multi-level marketing commission structure to a single-level affiliate program, leading to a 33% reduction in its corporate headcount.
This strategic move is expected to lower the company's revenue break-even point significantly. Despite potential short-term sales volatility due to these changes, Canaccord Genuity analysts have maintained a Buy rating on Beachbody.
The company has projected third-quarter 2024 revenues between $97 million to $107 million, with adjusted EBITDA between $2 million and $6 million. However, Beachbody also anticipates a net loss of $9 million to $13 million for the same period.
In addition, Beachbody has entered into a strategic partnership with healthcare payment provider Truemed, allowing eligible customers to use their Health Savings Account or Flexible Spending Account funds to purchase nutritional supplements. Lastly, there have been changes within the executive team, with Brad Ramberg stepping in as interim Chief Financial Officer.
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