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IRIDEX Corporation (NASDAQ:IRIX), a provider of therapeutic based laser systems currently trading at $0.99 per share, has amended an investor rights agreement with Novel Inspiration International Co., Ltd. According to InvestingPro data, the company’s stock has declined over 60% in the past year, though analysis suggests the stock may be undervalued at current levels. The amendment, detailed in an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Thursday, May 22, 2025, restricts the company from disposing of a substantial portion of its assets without unanimous board consent.
The amendment, signed on Monday, May 20, 2025, modifies the original agreement dated March 19, 2025. According to the terms, IRIDEX cannot sell, lease, or otherwise dispose of a significant part of its assets to anyone other than a wholly-owned subsidiary unless the board of directors agrees unanimously. With a market capitalization of $16.62 million and negative EBITDA of nearly $5 million in the last twelve months, this move comes as the company faces financial challenges.
This move could be significant for shareholders and potential investors as it indicates a more controlled approach to managing the company’s assets. The details of the amendment are available in Exhibit 4.1 of the 8-K filing.
The information in this article is based on a press release statement.
In other recent news, IRIDEX Corporation reported its financial results for the fourth quarter of 2024, revealing a net loss of $800,000, or $0.05 per share, which aligned with market expectations. The company saw revenue of $12.7 million, slightly exceeding forecasts and marking a 2% year-over-year increase. The positive adjusted EBITDA was achieved for the first time, reflecting improved financial performance driven by product sales growth. In another development, IRIDEX faces a potential delisting from Nasdaq due to non-compliance with the minimum stockholder equity requirement, as its equity fell short of the required $2.5 million. The company plans to address this by seeking stockholder approval to reclassify its Series B Preferred Stock as "permanent equity." Additionally, there have been changes in the company’s Board of Directors, with the resignations of Kenneth E. Ludlum and Robert E. Grove, in accordance with a Rights Agreement related to a transaction with Novel Inspiration International Co., Ltd. These resignations were not due to disagreements but were part of fulfilling contractual obligations.
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