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Interactive Strength , Inc. (NASDAQ:TRNR), a manufacturer specializing in electronic and electrical equipment with a market capitalization of $2.19 million, announced today that its stockholders have voted in favor of two significant proposals during a special meeting. According to InvestingPro data, the company’s stock has experienced significant volatility, declining nearly 100% over the past year. The meeting, held today at the company’s headquarters in Austin, Texas, was convened to address matters detailed in a definitive proxy statement filed on February 14, 2025.
The first proposal, which sought approval for the issuance of common stock exceeding 20% of the company’s current common stock, received affirmative votes from stockholders. This issuance is related to the conversion of certain notes and the exercise of certain warrants as per the Purchase Agreement in compliance with Nasdaq Listing Rule 5635(d). The voting results were 217,380 votes in favor, 34,791 votes against, and 920 abstentions, with 369,770 broker non-votes.
The second proposal granted the Board of Directors discretionary authority to effect one or more reverse stock splits. This would consolidate and reclassify the issued and outstanding shares of common stock into fewer shares at a ratio ranging from 1-for-5 up to 1-for-100. However, the aggregate effect of these reverse stock splits will not exceed 1-for-100, and any such action must be completed by the first anniversary of the Record Date. Stockholders approved this proposal with 519,933 votes for, 101,757 against, and 1,171 abstentions.
These approvals come at a critical time for Interactive Strength, Inc., as the company continues to navigate the financial landscape and seeks to enhance its capital structure. The successful vote on the reverse stock split, in particular, may offer the company more flexibility in its financial operations. InvestingPro analysis indicates the company faces financial challenges with a current ratio of 0.39, though analysts project revenue growth of 15% for the current year. The stock currently trades at a price-to-book ratio of 0.37, suggesting potential undervaluation according to InvestingPro’s Fair Value model.
The special meeting was attended by holders of 622,861 shares of common stock, constituting a quorum. As of January 17, 2025, the record date for the meeting, Interactive Strength, Inc. had 1,402,126 shares of common stock issued and outstanding.
This news is based on a press release statement and reflects the latest significant decisions by the shareholders of Interactive Strength, Inc. For deeper insights into Interactive Strength’s financial health, valuation metrics, and growth prospects, InvestingPro subscribers have access to over 15 additional exclusive ProTips and comprehensive financial analysis tools.
In other recent news, Interactive Strength Inc. has announced a definitive agreement to acquire Sportstech Brands Holding GmbH, a connected fitness company in Germany. The acquisition, which includes an initial $15 million investment, is expected to close by April 1, 2025, and aims to enhance Interactive Strength’s market position. Additionally, the company has secured an exclusive distribution agreement for its CLMBR vertical climbing machines in the United Kingdom (TADAWUL:4280), partnering with Cranlea Human Performance to expand its presence in the robust UK fitness market. In financial developments, Interactive Strength has entered into a settlement agreement with Pillsbury Winthrop Shaw Pittman LLP to address a $3.96 million liability, issuing an unsecured promissory note with a 12% interest rate. The company also amended the conversion price of a senior secured convertible promissory note held by Woodway USA, Inc., now owned by TR Opportunities II LLC, leading to the conversion of $1,212,400 into 471,750 shares of common stock. Furthermore, Interactive Strength has adjusted the terms of a convertible note initially issued to Treadway Holdings LLC, now held by Woodway, reflecting ongoing financial management strategies. These recent developments highlight Interactive Strength’s strategic moves in both financial restructuring and market expansion.
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