WICHITA, KS – AgEagle Aerial Systems Inc. (NYSE American:UAVS), a micro-cap aircraft manufacturer valued at $16.18 million and down 96% over the past year, announced today significant changes following a special meeting of shareholders. According to InvestingPro analysis, the company faces significant financial challenges, with 14 key risk factors identified for investors to consider.
The company, which is incorporated in Nevada, has filed a Certificate of Amendment to its Articles of Incorporation, effectively increasing its authorized common stock from 5 million to 200 million shares.
This amendment was approved by the shareholders during the special meeting held today. The increase in authorized common stock became effective upon the filing with the Secretary of State of Nevada.
The special meeting also saw shareholders voting on two other key proposals. The first proposal concerned the approval of the issuance of shares of common stock representing more than 20% of the company’s outstanding common stock upon conversion of a convertible note, in accordance with NYSE American Rule 713(a)(ii). This proposal was passed with 1,740,079 votes in favor, 182,469 against, and 7,471 abstentions.
The second proposal addressed the adjournment of the special meeting, if necessary, to solicit additional proxies if there were not sufficient votes in favor of the other proposals. This adjournment proposal was approved with 2,175,177 votes for, 318,660 against, and 17,365 abstentions.
As of the record date, November 8, 2024, AgEagle Aerial Systems had 3,554,096 shares of common stock outstanding. A quorum was present at the special meeting with 2,511,203 shares represented either in person or by proxy.
The company’s actions reflect its effort to adjust its capital structure, potentially paving the way for future growth initiatives. The filing and shareholder approval indicate a strategic move that could influence the company’s financial and operational flexibility.
The detailed results of the votes and the Certificate of Amendment are available in the company’s latest 8-K filing with the Securities and Exchange Commission. This report is based on the press release statement issued by AgEagle Aerial Systems Inc., which currently maintains a ‘Weak’ financial health score of 1.2 out of 5 according to InvestingPro’s comprehensive analysis framework.
In other recent news, AgEagle Aerial Systems has reported several significant developments.
The company secured a record sale of 60 RedEdge-P Multispectral Sensors, marking the largest single sensor order in its history. The sensors, used for detailed vegetation analysis, will be primarily deployed for researching seaweed species and identifying red tide outbreaks. This milestone sale comes as the company reported a trailing twelve-month revenue of $13.5 million and a gross profit margin of 47.3%.
In addition, AgEagle has completed the delivery of three eBee VISION drones to the Danish Ministry of Defence Acquisition and Logistics Organisation (DALO), further establishing its presence in the military and defense sectors. The drones are designed for intelligence, surveillance, and reconnaissance applications, offering real-time situational awareness for public safety and military operations.
The company has also seen changes in its leadership, with the appointment of L.B. Day and Kevin Lowdermilk to its Board of Directors, and Adrienne Anderson as the new Interim Chief Financial Officer. However, it also received a noncompliance notice from the NYSE American stock exchange regarding its board and audit committee composition and is required to submit a plan to regain compliance.
From an operational standpoint, AgEagle secured two large orders totaling $5.5 million from the French Army and UAE security forces. It also launched a public offering expected to generate about $6.5 million and issued new preferred shares and warrants to Alpha Capital Anstalt, valued at $500,000.
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