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CTD Holdings, Inc. 8-K Filing: Key Shareholder Meeting Outcomes Revealed

$CYTHW
Form 8-K
Filed on: 2018-05-24
Source
CTD Holdings, Inc. 8-K Filing: Key Shareholder Meeting Outcomes Revealed

Key Information from the 8-K Filing of CTD Holdings, Inc. (May 23, 2018)

Company Overview:

  • Name: CTD Holdings, Inc.
  • Incorporation: Florida
  • SEC File Number: 000-25466
  • IRS Employer Identification No.: 59-3029743
  • Address: 6714 NW 16th Street, Suite B, Gainesville, Florida 32563
  • Phone: 386-418-8060

Special Shareholder Meeting:

  • Date of Meeting: May 23, 2018
  • Purpose: To vote on proposed amendments to the Articles of Incorporation.

Proposals Voted On:

  1. Proposal I: Increase the number of authorized shares of common stock from 100 million to 500 million.
  • Outcome: Approved with approximately 73% voting in favor.
  • Votes:
    • For: 54,769,871
    • Against: 2,780,000
    • Abstain: 999,572
    • Broker Non-Votes: 28,700
  1. Proposal II: Delete references to the Series A Preferred Stock (no longer outstanding).
  • Outcome: Approved with approximately 73% voting in favor.
  • Votes:
    • For: 54,968,979
    • Against: 2,780,000
    • Abstain: 800,665
    • Broker Non-Votes: 28,500
  1. Proposal III: Delete Article XII, which provided shareholders a right of first refusal on shares issued to the founder.
  • Outcome: Approved with approximately 58% voting in favor.
  • Votes:
    • For: 43,484,074
    • Against: 2,780,000
    • Abstain: 148,455
    • Broker Non-Votes: 413,300

Post-Meeting Actions:

  • Following the special meeting, the company filed Articles of Amendment with the Florida Department of State, which resulted in the conversion of each outstanding share of Preferred Stock into 400 shares of common stock.

Insights:

  • The shareholder meeting was significant in terms of restructuring the company's capital structure, allowing for increased flexibility with a higher number of authorized common shares.
  • The overwhelming support for the first two proposals indicates a strong alignment among shareholders regarding the company's growth strategy and the removal of outdated capital structures.
  • Proposal III, while approved, received a lower percentage of support compared to the first two proposals, suggesting some dissent among shareholders regarding founder-related rights.
  • The automatic conversion of preferred stock to common stock may dilute existing shareholders but could also enhance liquidity and trading volumes of common shares.

This report highlights crucial changes in CTD Holdings, Inc.'s governance and capital structure, reflecting the company's strategic direction and shareholder sentiment.