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New Horizon Aircraft Ltd. (NASDAQ:HOVR), a British Columbia-based aircraft manufacturer with a market capitalization of $18 million, announced today that its shareholders have given the green light to a significant conversion proposal during a special meeting. The proposal, which involved the conversion of certain Series A preferred shares and the issuance of Class A ordinary shares, was approved with a substantial majority. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 2.76.
The special meeting, which took place today, was convened to address the conversion proposal detailed in the company’s definitive proxy statement filed on February 4, 2025. The conversion is related to an offering of securities that occurred on December 19, 2024.
Out of the 31,230,914 Class A Ordinary Shares issued and outstanding, 27,021,972 shares were entitled to vote. The quorum for the meeting was met with 10,622,026 votes represented in person or by proxy, accounting for approximately 39.3% of the total eligible votes.
The voting results showed strong support for the conversion proposal, with 10,271,382 votes in favor, 331,441 against, and 19,203 abstentions. There were no broker non-votes reported. Trading at a P/E ratio of just 2.54, InvestingPro analysis suggests HOVR is currently undervalued, with 18 additional key insights available to subscribers, including detailed financial health metrics and growth projections.
This approval allows New Horizon Aircraft Ltd. to proceed with the conversion of the Series A Preferred Shares as planned, which is in accordance with Nasdaq Listing Rule 5635. The issuance of Class A Ordinary Shares underlying these preferred shares is now authorized, marking a significant step forward for the company, which analysts expect to maintain profitability this year.
The successful vote reflects shareholder confidence in New Horizon’s strategic decisions and could potentially impact the company’s capital structure and financing strategy moving forward.
This report is based on a press release statement and provides a summary of the key events and decisions taken during New Horizon Aircraft Ltd.’s special meeting on the matter of securities conversion.
In other recent news, Horizon Aircraft reported its compliance with Nasdaq’s Equity Standard, ensuring its continued listing on the Nasdaq Capital Market. The company also received an extension until July 14, 2025, to meet the Bid Price Rule, which gives it additional time to adjust its share price according to Nasdaq’s requirements. Meanwhile, New Horizon Aircraft, formerly known as Pono Capital Three , Inc., disclosed its efforts to regain compliance with Nasdaq’s listing standards after falling short in net income and other financial benchmarks. To address these deficiencies, the company entered into subscription agreements, known as the Canso Financing, resulting in net proceeds of approximately USD $6.0 million.
Horizon Aircraft also announced the appointment of John Wyzykowski as a Technical Expert to enhance its Cavorite X7 eVTOL propulsion systems, bringing his extensive experience in advanced aerospace propulsion. Additionally, New Horizon Aircraft updated terms with key investors through an amendment to previous financing agreements, introducing an Exchange Cap to align with Nasdaq rules. The company committed to securing necessary shareholder approval for these changes within 60 days. These strategic moves are part of Horizon Aircraft’s ongoing efforts to maintain regulatory compliance and advance its hybrid eVTOL development.
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