In a recent special meeting, Volato Group, Inc. shareholders voted on several amendments to the company's Certificate of Incorporation. The meeting, held virtually on Monday, was called to address significant corporate governance alterations.
The approved amendments included a reverse stock split, an increase in the number of authorized shares of Class A common stock, provisions for stockholders to act by written consent, and a reduction in the quorum requirement for shareholder meetings. Additionally, the shareholders ratified the adjournment of the special meeting.
The reverse stock split received overwhelming support with 17,581,247 votes for, 800,909 against, and 132,639 abstentions. The increase in authorized shares saw 14,977,421 votes for, 3,405,063 against, and 132,311 abstentions. The ability for stockholders to act by written consent was approved with 12,701,531 votes for, 834,084 against, and 614,293 abstentions, despite a significant number of broker non-votes.
A reduction in the quorum requirement from a majority to one-third was also passed, with 11,479,657 votes for, 2,055,846 against, and 18,160 abstentions, accompanied by a notable number of broker non-votes. The adjournment of the special meeting was approved with 13,529,153 votes for, 4,196,486 against, and 789,156 abstentions.
These changes are expected to impact the company's governance and stock structure, reflecting the shareholders' collective decisions. No other matters were voted on during the meeting.
Volato Group, Inc., categorized under the Air Transportation, Nonscheduled industry and incorporated in Delaware, is listed on the NYSE American LLC under the ticker symbol SOAR and on the OTC Pink with warrants under the symbol SOARW. The company's fiscal year ends on December 31st.
This report is based on a press release statement from the Securities and Exchange Commission filing by Volato Group, Inc.
In other recent news, Volato Group, Inc. has been in the spotlight with several significant developments. The company's compliance plan received approval from the NYSE American, ensuring its continued listing on the exchange. This development followed a notice indicating a shortfall in meeting the exchange's listing standards regarding stockholders' equity. Volato now has until December 2025 to comply with the standards.
The company has also entered into a significant contract with flyExclusive, Inc., designating flyExclusive as the exclusive provider of certain aircraft management services. This agreement includes an option for flyExclusive to initiate a merger with a fully-owned subsidiary of Volato within the next twelve months.
Volato Group has also expanded indemnification for its directors and officers and secured a $4 million loan from TVT Capital Source LLC. The loan, along with an interest of $1.8 million, is scheduled for full repayment by January 2025.
The company has also undergone a significant reconfiguration of its Board of Directors, reducing its size from seven to five members. This reshuffle includes the addition of Christopher G. Burger and Fred A. Colen, both seasoned professionals from the technology and aviation sectors. These are among the recent developments for the company.
InvestingPro Insights
Recent InvestingPro data provides additional context to Volato Group's (SOAR) current financial situation, which may help explain the recent shareholder decisions. The company's market capitalization stands at a modest $8.77 million, reflecting its small-cap status. This aligns with the shareholders' approval of a reverse stock split, which is often implemented to boost share price and attract institutional investors.
InvestingPro Tips highlight some concerning trends for Volato Group. The company is operating with a significant debt burden and may have trouble making interest payments. This financial strain is further evidenced by the fact that short-term obligations exceed liquid assets. These factors likely contributed to the shareholders' decision to increase the number of authorized shares, potentially allowing for additional capital raising.
The company's revenue for the last twelve months as of Q2 2024 was $73 million, with a concerning revenue growth of -7.21% over the same period. This negative growth, combined with the InvestingPro Tip indicating that the company is quickly burning through cash, underscores the importance of the governance changes approved by shareholders.
InvestingPro offers 13 additional tips for SOAR, providing a more comprehensive analysis of the company's financial health and market performance. Investors seeking a deeper understanding of Volato Group's prospects may find these insights valuable in light of the recent corporate governance changes.
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