Outset Medical adjusts stockholder voting rules

SAN JOSE, CA – Outset Medical (TASE:PMCN), Inc., a company specializing in electromedical and electrotherapeutic apparatus with a market capitalization of $44 million, announced on Thursday a significant amendment to its corporate bylaws affecting how stockholder votes are tallied for company decisions.

According to InvestingPro analysis, the company maintains a FAIR financial health score despite challenging market conditions, with its stock currently trading at $0.85.

The amendment, adopted by the board of directors on January 23, 2025, revises the voting requirements for stockholder meetings. Previously, matters required the affirmative vote of a majority of the voting power of the capital stock present in person or by proxy. Under the new bylaw, any matter, other than director elections, will now be decided by a simple majority of the votes cast at the meeting, provided that it is not contrary to the company's certificate of incorporation or the bylaws.

This change simplifies the decision-making process at stockholder meetings, potentially allowing for a more efficient resolution of issues when not all voting power is represented at the meeting. The amendment specifically alters Section 1.7(a) of the Bylaws, with all other sections remaining unchanged and in full effect.

The move by Outset Medical, which trades under the ticker (NASDAQ:OM), aligns its governance more closely with standard voting practices, where the focus is on the majority of votes actually cast, rather than the majority of all possible votes based on total share capital.

With the company's next earnings report scheduled for February 18, 2025, and analysts maintaining a positive outlook with higher price targets, InvestingPro subscribers can access 13 additional key insights about the company's financial position and growth prospects through the comprehensive Pro Research Report.

The company's filing with the Securities and Exchange Commission on January 24, 2025, includes the full text of the Bylaw Amendment as Exhibit 3.1, which provides the detailed legal language of the changes. This amendment is effective immediately as of its adoption date. While the stock has experienced significant volatility over the past year, current analysis suggests the company is undervalued based on InvestingPro's Fair Value calculations.

Outset Medical, formerly known as Home Dialysis Plus, Ltd., is incorporated in Delaware and has its principal executive offices in San Jose, California. This information is based on the most recent SEC filing by the company.

In other recent news, Outset Medical Inc . has seen a flurry of financial activity. The company's Q3 revenue reached $28.7 million, exceeding expectations with treatment revenue up by 14% and service revenue by 22%. Despite a net loss of $20.2 million, this marked an improvement from the previous year, and the company's gross margin rose to 36.4%. In response to these developments, Outset Medical raised its 2024 revenue guidance to approximately $112 million.

Furthermore, the company recently closed a private placement offering and issued Series A Non-Voting Convertible Preferred Stock. This was accompanied by the termination of existing senior secured credit facilities and the initiation of a new financial obligation with Perceptive Credit Holdings IV, LP. Outset Medical also borrowed $100 million as an initial term loan from Perceptive Credit Holdings IV, LP, which, along with cash reserves, was used to repay existing debts.

In addition, BTIG analyst Maria Thibault revised the price target for Outset Medical to $3.00, down from the previous $4.00, while maintaining a Buy rating for the stock. The adjustment was made following the company's recent financial developments and despite the positive adjustment in the valuation multiple.

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