In a recent regulatory filing with the Securities and Exchange Commission (SEC), Hempacco Co., Inc., a company specializing in cigarette manufacturing, reported the resignation of two board members and the results of its annual stockholders meeting. The filing, dated October 3, 2024, indicated that Paul Glavine and Harrison Newlands stepped down from the company's Board of Directors on October 4, 2024.
The company's annual stockholders meeting, which took place on October 3, 2024, saw a quorum with approximately 64.49% of the total outstanding voting shares present or represented. During the meeting, stockholders voted on several key proposals.
The first proposal involved the election of directors. Sandro Piancone, Jorge Olson, Jerry Halamuda, Paul Glavine, and Harrison Newlands were on the ballot, and all received a majority of votes for their election, despite the subsequent resignations of Glavine and Newlands.
The second proposal was the ratification of the appointment of dbbmckennon as Hempacco's independent registered public accounting firm for the fiscal year ending December 31, 2024. This proposal was approved with a significant majority.
Lastly, stockholders participated in a non-binding vote to approve the compensation of the company's named executive officers, which also passed.
Hempacco, headquartered in San Diego, CA, is listed on The Nasdaq Stock Market (NASDAQ:HPCO) and operates under the SIC code 2111 for cigarette manufacturing. This news is based solely on the information provided in the company's SEC filing.
In other recent news, Hempacco Co., Inc., a cigarette manufacturer, faces potential delisting from the Nasdaq Stock Market due to rule violations. The notice of non-compliance, received on September 4, 2024, is a result of Hempacco's failure to hold an annual shareholders' meeting and file periodic financial reports, as required by Nasdaq Listing Rules. In response, Hempacco is planning to appeal the decision and has scheduled an annual meeting of shareholders to address the compliance issues. The company is also working on filing the overdue reports. However, Hempacco acknowledges there is no certainty that these efforts will result in the reversal of the delisting decision.
Following the notice, the company's common stock began trading on the Expert Market of the OTC Link alternative trading system. If the appeal to Nasdaq fails, Hempacco plans to apply for its stock to be quoted on the OTCQB Venture Market, though approval is not guaranteed.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on Hempacco's current market position and performance. As of the latest quarter, the company's market capitalization stands at a modest $0.14 million, reflecting its small-cap status. Despite the recent board resignations and stockholder meeting results, Hempacco has shown significant revenue growth, with quarterly revenue increasing by an impressive 285.84% in Q4 2023.
However, the company faces challenges, as evidenced by its negative gross profit margin of -30.05% and operating income margin of -217.82% for the last twelve months as of Q4 2023. These figures suggest that Hempacco is currently operating at a loss, which may explain the recent changes in board composition and the importance of the stockholder meeting decisions.
InvestingPro Tips highlight that Hempacco is trading at a low P/E ratio relative to near-term earnings growth, which could be of interest to value-oriented investors. Additionally, the company's valuation implies a strong free cash flow yield, potentially indicating undervaluation in the market. These insights, along with 5 more tips available on InvestingPro, provide a more comprehensive view of Hempacco's financial health and market position.
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