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MINNEAPOLIS-based FoxO Technologies Inc. (NYSE American: FOXO), a company specializing in commercial physical and biological research with a current market capitalization of $4.63 million, announced the completion of a significant financial restructuring. Trading at $0.26 per share, InvestingPro analysis suggests the stock is currently fairly valued. Effective as of 5:00 pm Eastern Time on Tuesday, the company has finalized the conversion of its 15% Senior Promissory Notes into shares of Series B Cumulative Convertible Redeemable Preferred Stock.
The restructuring stems from an agreement reached on September 20, 2022, when FoxO Technologies entered into Securities Purchase Agreements with accredited investors, issuing Senior Promissory Notes totaling $3,457,500. On October 18, 2024, the company received consent from a majority of note holders to proceed with an amendment allowing the conversion of these notes into Series B Preferred Stock.
Following shareholder approval via a majority written consent action on January 17, 2025, the conversion was executed on the specified effective date. The Senior Promissory Notes were exchanged at a stated value of $1,000 per share of Series B Preferred Stock, resulting in the issuance of 3,457.5 shares of the preferred stock and the full satisfaction and cancellation of the Senior Promissory Notes. According to InvestingPro data, the company faces significant financial challenges with a current ratio of 0.08, indicating potential liquidity concerns. Subscribers can access 8 additional key ProTips and comprehensive financial metrics.
This strategic move is in accordance with the continued listing rules of the New York Stock Exchange American and is aimed at restructuring the company's debt. The conversion also aligns with the company's broader financial strategy as it continues to navigate the commercial research industry.
FoxO Technologies, originally known as Delwinds Insurance Acquisition Corp. before its name change on May 18, 2020, operates out of its headquarters at 729 N. Washington Ave., Suite 600, Minneapolis, MN. The company's CEO, Seamus Lagan, signed off on the SEC filing that confirmed the completion of this conversion process.
This development is based on a press release statement and reflects the company's latest financial restructuring efforts. Despite challenging financials, FoxO has demonstrated impressive revenue growth of 196% over the last twelve months. For detailed analysis and real-time updates, investors can access comprehensive financial health scores and valuation metrics through InvestingPro.
In other recent news, FOXO Technologies has been making significant strides in addressing its financial challenges. The company's shareholders have approved the conversion of 15% Senior Promissory Notes, amounting to $3,458,000, into Series B Cumulative Convertible Redeemable Preferred Stock. This crucial step in financial restructuring aims to alleviate the company's substantial debt of approximately $35.7 million.
In addition to debt conversion, FOXO Technologies has secured shareholder consent for the issuance of Class A Common Stock upon conversion of its Series A Preferred Stock. The company has also amended its Certificate of Incorporation, introducing a beneficial ownership limitation clause to prevent any one investor from gaining disproportionate control.
The Annual General Meeting concluded with the re-election of its board of directors and the ratification of Kreit & Chiu CPA LLP as its independent registered public accounting firm. FOXO Technologies also regained compliance with NYSE American LLC continued listing standards, thereby eliminating the risk of delisting.
Despite financial challenges, FOXO Technologies has shown impressive revenue growth of 196% over the last twelve months. These recent developments indicate the company's strategic efforts to streamline its capital structure and align operations with shareholder interests and regulatory requirements.
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