LogicMark expands capital stock capacity

Published 27/03/2025, 20:32
LogicMark expands capital stock capacity

In a recent SEC filing, LogicMark, Inc., a company specializing in orthopedic, prosthetic, and surgical appliances and supplies, announced significant changes to its corporate structure. The announcement comes as the company’s stock trades at $0.09, having declined nearly 94% year-to-date according to InvestingPro data. On Thursday, LogicMark reported the approval of a Charter Amendment to increase its authorized capital stock from 110 million to 880 million shares. This move includes an upsurge in common stock from the current amount to 800 million shares and an allocation of 80 million shares to "blank check" preferred stock.

The decision was ratified during a special meeting of stockholders held on Thursday, where various proposals were put to vote. The increase in authorized shares received a favorable vote, with 3,851,118 votes for, 151,145 against, and 1,121 abstentions. InvestingPro data shows the company maintains a healthy current ratio of 3.73, indicating strong short-term liquidity despite recent market challenges. This Charter Amendment allows LogicMark greater flexibility in issuing stock for future corporate needs, including but not limited to, fundraising, stock dividends, and employee stock options.

Additionally, stockholders approved a reverse stock split of the outstanding common shares, with a ratio range of one-for-ten to one-for-fifty, to be determined by the Board no later than December 31, 2025. The exact ratio for the reverse stock split has not been disclosed, but the authorization grants the Board the discretion to finalize the details. The reverse stock split aims to potentially increase the market price of LogicMark’s common stock, making it more attractive to investors.

The stockholders also consented to a similar reverse stock split for the Series C Preferred Stock, ensuring the parity between the reverse splits of common stock and preferred stock.

The SEC filing by LogicMark, Inc., headquartered in Louisville, KY, indicates these changes are part of the company’s strategic initiatives to restructure its financial and capital framework. The filing did not include any commentary on the anticipated impact of these changes on the company’s operations or market performance. With a market capitalization of just $0.18 million and an overall weak financial health score according to InvestingPro, which offers 16 additional key insights about the company’s financial position and market performance in its comprehensive Pro Research Report.

LogicMark trades on The Nasdaq Stock Market LLC under the ticker symbol LGMK. The information provided is based on the company’s latest 8-K filing with the SEC.

In other recent news, LogicMark, Inc. has been notified by Nasdaq about a potential delisting due to its stock failing to meet the minimum bid price requirement. The company is actively working on a plan to regain compliance and intends to appeal the decision before a Nasdaq hearings panel. Meanwhile, LogicMark has launched its upgraded Guardian Alert 911 Plus, a medical alert device that integrates 4G LTE connectivity and advanced fall detection capabilities, eliminating the need for a monthly subscription fee. This new device is available for pre-sale and aims to enhance safety for seniors and individuals with medical conditions. Additionally, LogicMark announced its expansion into the Medicaid Waiver Program in six states, allowing eligible individuals to receive reimbursement for its medical alert devices. This expansion aims to reduce financial burdens for seniors seeking essential safety devices. The Medicaid integration will enable access to the Freedom Alert Mini and Freedom Alert Max devices with either full or partial coverage of monthly monitoring fees. These developments reflect LogicMark’s ongoing efforts to innovate and expand access to its safety technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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