Achari Ventures Holdings Corp. I (NASDAQ:AVHI), a special purpose acquisition company, announced today that its stockholders have voted to approve a proposed business combination with Vaso Corporation, a health services provider. The approval was granted during a special meeting held on Monday, with a quorum of 92.6% of the voting power of Achari’s common stock as of the record date.
The stockholders voted in favor of all proposals related to the business combination, including amendments to the company's charter, governance proposals, a reverse stock split, and the adoption of the 2024 Equity Incentive Plan. The proposals received unanimous support from the voting stockholders, with no votes against or abstentions recorded.
As a result of the stockholder approval, Achari is expected to promptly consummate the business combination, subject to the satisfaction or waiver of other closing conditions. Following the transaction, Vaso Corporation's common stock is expected to be listed on the Nasdaq Stock Market under the ticker symbol "VASO," and its warrants under "VASOW."
In conjunction with the approval of the business combination, stockholders holding 297,709 shares of Achari common stock exercised their right to redeem their shares for cash at approximately $11.58 per share, totaling approximately $3.447 million.
The special meeting's outcome marks a significant step towards the completion of the business combination, which is anticipated to expand Vaso's capabilities and market reach. The transaction details were initially outlined in a definitive business combination agreement dated December 6, 2023, and further described in the joint proxy statement/prospectus filed with the SEC, which was declared effective on August 5, 2024.
This report is based on information provided in a recent SEC filing by Achari Ventures Holdings Corp. I.
In other recent news, Achari Ventures Holdings Corp. I is set to be delisted from Nasdaq due to non-compliance with minimum market value and shareholder requirements. Despite this, the healthcare services company continues to move forward with its planned business combination with Vaso Corporation. The company has provided unaudited pro forma financial information reflecting this potential merger, which is expected to strengthen Achari Ventures' industry position.
In order to allow more time for the merger, Achari Ventures has extended its deadline multiple times, depositing $12,360.40 into a trust account to support these extensions. The company has also rescheduled its Special Meeting of stockholders to allow more time for the review of the transaction. These are recent developments in the company's ongoing business activities.
Despite facing potential delisting, Achari Ventures is making significant moves in the health services industry. The company is also in the process of a proposed business combination with Vaso Corporation, contingent upon Nasdaq's approval of the company's initial listing application related to the business combination. Lastly, Achari Ventures has made changes in its transfer agent, appointing Equiniti Trust Company to manage the transfer of its common stock.
InvestingPro Insights
In light of Achari Ventures Holdings Corp. I's (NASDAQ:AVHI) recent stockholder approval for the business combination with Vaso Corporation, it's important to consider the company's financial health and market position.
According to InvestingPro data, Achari has a market capitalization of $31.4 million and is currently trading near its 52-week low. The company's P/E ratio stands at -14.3, reflecting challenges in profitability, as it has not been profitable over the last twelve months. Moreover, Achari's short-term obligations exceed its liquid assets, indicating potential liquidity risks.
InvestingPro Tips suggest that management has been actively buying back shares, which could be a signal of confidence in the company's future. However, Achari suffers from weak gross profit margins, which investors should consider when evaluating the company's long-term value proposition. For those interested in a deeper dive, InvestingPro offers additional tips and insights on Achari Ventures Holdings Corp. I.
While the business combination with Vaso Corporation is set to expand market reach, investors should remain cognizant of these financial metrics and the fact that Achari does not pay a dividend to shareholders, which may influence investment strategies. For a more comprehensive analysis, there are numerous additional InvestingPro Tips available to help investors make informed decisions.
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