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SAB Biotherapeutics, Inc. (NASDAQ:SABS), a micro-cap biotech company with a market capitalization of $20.72 million, announced Friday that its shareholders approved two key proposals at a special meeting, according to a statement based on a recent SEC filing. InvestingPro data shows the company faces financial challenges, with a weak overall Financial Health Score of 1.23.
The first approved proposal allows for the potential issuance of more than 19.99% of the company’s outstanding common stock upon the conversion of its Series B Convertible Preferred Stock at less than the minimum price under Nasdaq Listing Rule 5635(d). This action could be considered a “change of control” under Nasdaq rules, as outlined in the company’s Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock.
The second proposal amends the company’s 2021 Omnibus Equity Incentive Plan. The amendment increases the maximum number of shares of common stock available to plan participants by 24,180,000 shares, resulting in a new aggregate total of 31,932,466 shares. Additionally, the amendment raises the maximum number of shares available for annual evergreen increases from 10,000,000 to 73,750,000 shares.
At the special meeting, 6,053,045 shares were present in person or by proxy, representing approximately 54.5% of the outstanding shares entitled to vote, including Series A Preferred Stock on an as-converted basis. For the Series B conversion proposal, 5,502,026 votes were cast in favor, 515,275 against, and 35,744 abstained. For the equity plan amendment, 5,089,862 votes were in favor, 951,598 against, and 11,585 abstained.
SAB Biotherapeutics’ common stock and warrants trade on the Nasdaq Stock Market under the symbols SABS and SABSW, respectively.
This information is based on a press release statement included in the company’s recent SEC filing.
In other recent news, SAB Biotherapeutics has made several noteworthy announcements. The company presented promising preclinical and Phase 1 data for its SAB-142 treatment at a European symposium, highlighting its potential in preventing new-onset Stage 3 Type 1 Diabetes. Meanwhile, SAB Biotherapeutics reported its second-quarter financial results, ending the quarter with $5.7 million in cash and equivalents, a decrease from $20.8 million at the end of 2024. The company also secured a $175 million private placement, with participation from strategic investors like Sanofi and several institutional investors, which could potentially increase by $284 million through warrants.
Additionally, Chardan Capital Markets adjusted its price target for SAB Biotherapeutics to $12.00 from $20.00, maintaining a Buy rating. H.C. Wainwright also revised its price target to $9.00 from $10.00, while keeping a Buy rating. Oppenheimer raised its price target to $14.00 from $12.00, continuing to rate the stock as Outperform. These developments reflect the company’s recent financial activities and strategic partnerships, drawing attention from various investment firms.
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