IRIDEX Director Resigns to Comply with Rights Agreement

MOUNTAIN VIEW, CA - IRIDEX Corporation (NASDAQ:IRIX), a provider of electromedical and electrotherapeutic apparatus with a market capitalization of $15.66 million, announced the resignation of Robert E. Grove from its Board of Directors, effective April 2, 2025. The company, which generated revenue of $48.67 million in the last twelve months, has seen its stock decline over 66% in the past year. The departure is in line with a recently enacted Rights Agreement with Novel Inspiration International Co., Ltd. ("Novel").

The Rights Agreement, part of a larger transaction known as the "Novel Transaction (JO:NTUJ)," includes a Securities Purchase Agreement and Note Purchase Agreement, which were all agreed upon on March 19, 2025. According to the terms, IRIDEX committed to maintaining the size of its Board at five directors. InvestingPro analysis indicates the company operates with a moderate level of debt, maintaining a current ratio of 1.42.

Dr. Grove’s resignation is not due to any disagreements with the company’s operations, policies, or practices, but rather to fulfill the stipulations of the Rights Agreement. The Board has expressed its gratitude to Dr. Grove for his years of service and contributions to the company.

The details of the Rights Agreement have been incorporated by reference to Exhibit 10.1 in the 8-K filing with the SEC. The document referenced is the same as the one filed on March 20, 2025, as part of the Form 8-K.

This move comes as IRIDEX continues to navigate the strategic landscape of the medical device industry, adhering to corporate governance requirements while fostering its relationships with investors and partners. According to InvestingPro, which provides comprehensive analysis of over 1,400 US stocks, IRIDEX is currently trading below its Fair Value, with 8 additional key insights available to subscribers.

The information in this article is based on the company’s SEC filing.

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 achieved revenue of $12.7 million, slightly exceeding forecasts, and marking a 2% year-over-year increase. Notably, IRIDEX reported positive adjusted EBITDA for the first time, with total adjusted EBITDA for the quarter reaching $400,000. The company also experienced a 10% sequential revenue growth, driven by product sales. Additionally, IRIDEX benefited from a strategic investment by Novel Innovations, which enhances its growth prospects. The investment was made at a premium, reflecting Novel’s confidence in IRIDEX’s potential. The company plans to discuss its evolving strategy in a special call in mid-April. IRIDEX’s financial performance reflects an improving macroeconomic environment, with plans to remain adjusted EBITDA and cash flow positive in 2025.

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