- Vaxart (VXRT, Financial) board proposes a reverse stock split to avoid Nasdaq delisting, setting a maximum ratio of 1-for-20.
- The company plans to proportionally reduce authorized shares following stockholder approval.
- Proxy advisory firms ISS and Glass Lewis have endorsed the proposal, with voting open until May 20, 2025.
Vaxart, Inc. (VXRT) has announced significant amendments to its proxy statement for the upcoming Annual Meeting, aligning with efforts to maintain its Nasdaq listing. The board has proposed crucial changes contingent on the passage of Proposal #2, including a reverse stock split not exceeding a 1-for-20 ratio. By limiting the reverse split to this ratio, Vaxart aims to mitigate dilution concerns and maintain investor confidence.
Additionally, the board intends to proportionally reduce the company's authorized common stock shares, pending stockholder approval at a future special meeting. This strategic move is designed to preserve stockholder liquidity and ensure continued access to institutional investments, vital for the company's financial health.
Both Institutional Shareholder Services (ISS) and Glass Lewis, prominent proxy advisory firms, have recommended stockholders support Proposal #2. This endorsement adds weight to the company's appeal, emphasizing the importance of compliance with Nasdaq's listing requirements to avoid potential delisting.
Vaxart has set a voting deadline for Proposal #2 on May 20, 2025, at 11:59 p.m. ET. The company encourages stockholders who previously voted against the proposal to reconsider and change their votes to maintain the listing and support the ongoing development of its oral pill vaccine technology.
