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Universal Security Instruments, Inc. (NYSE MKT:UUU) announced today that its shareholders have approved the sale of substantially all of the company’s assets to Feit Electric Company, Inc. The decision comes as the company’s stock has shown significant momentum, posting a 19.53% return over the past week according to InvestingPro data. The decision was made during a reconvened Special Meeting of Shareholders on Monday, following an initial meeting and adjournment on January 23, 2025.
The asset sale received affirmative votes from 1,550,126 shares, surpassing the required two-thirds majority of the outstanding shares necessary for approval. A total of 1,978,248 shares were represented at the meeting, which accounts for 85.5% of the total outstanding shares.
However, the proposal for the liquidation and dissolution of the company did not receive the required number of affirmative votes, with 1,539,736 shares voting for and 53,939 against, falling short of the necessary majority.
In addition, shareholders approved an amendment to the company’s Articles of Incorporation to change its name from "Universal Security Instruments, Inc." to "Universal Safety Products, Inc.," with 1,918,732 shares in favor of the change.
Following the rejection of the dissolution proposal, the company’s board is now considering alternative strategies. With a healthy current ratio of 1.75 and moderate debt levels as reported by InvestingPro, these may include paying a dividend, acquiring other businesses, or engaging in a reverse merger, recapitalization, or similar transaction. Despite posting revenue growth of 5.57% in the last twelve months, the company faces profitability challenges with negative EBITDA of $1.03 million. The company is exploring transactions that could allow for cash distribution to shareholders and potentially provide additional value.
Universal Security Instruments, Inc., based in Owings Mills, Maryland, is known for its wholesale of electronic parts and equipment, generating annual revenue of $22.17 million. The company’s management will provide further details on the next steps as they become available, in compliance with SEC and New York Stock Exchange regulations. For deeper insights into UUU’s financial health and additional ProTips, investors can access comprehensive analysis through InvestingPro.
This news is based on a press release statement from Universal Security Instruments, Inc. and reflects the latest developments regarding the company’s strategic decisions as disclosed in their SEC filing.
In other recent news, Universal Security Instruments Inc. announced the adjournment of its Special Meeting of Shareholders, initially set for January 23, 2025, and rescheduled it for April 15, 2025. This decision was made to allow further solicitation of proxies for the Asset Sale Proposal and the Dissolution Proposal. Shareholders had previously approved the adjournment to enable the Board of Directors to secure additional votes. The meeting will take place at the company’s offices, with shareholders of record as of December 19, 2024, retaining their voting rights. Those who have already voted and do not wish to change their vote need not take any action. The Board of Directors has endorsed the proposals as a strategy to enhance long-term shareholder value. If the proposals do not pass, the company may consider alternatives, including delisting from the NYSE MKT. Shareholders are encouraged to review the Proxy Statement available on the SEC’s website for detailed information.
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