Inhibikase Therapeutics, Inc. (NASDAQ:IKT), a biopharmaceutical company, announced on Monday that its shareholders approved a significant amendment to its corporate charter to increase the number of authorized common shares.
The amendment, which was passed during a Special Meeting on January 3, 2025, raises the authorized common stock from 100 million to 500 million shares. Additionally, the amendment removes the supermajority voting requirement for changes to certain sections of the company's articles of incorporation.
The move, which was previously greenlit by Inhibikase's board of directors pending shareholder approval, was officially filed with the State of Delaware, where the company is incorporated, and became effective immediately.
The increase in authorized shares is a common strategy for companies seeking flexibility for future corporate needs, such as financing, stock splits, and equity compensation. Inhibikase also gained shareholder approval for an amendment to its 2020 Equity Incentive Plan, adding 27,453,993 shares to the pool available for issuance.
Moreover, shareholders approved the repricing of specific outstanding stock options, a decision that can potentially align the interests of employees and shareholders by adjusting the exercise price of options to current market values.
Another corporate governance change included the elimination of a 66 2/3% affirmative vote requirement for amending a section of Article IV of the articles of incorporation, simplifying the process for future amendments.
The voting results showed strong support for the proposals, with the amendment to increase the number of shares receiving over 62 million votes in favor and less than 400,000 against. The other proposals also passed by substantial margins.
The news above is based on an SEC filing.
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