In a significant move for the medical technology sector, Asensus Surgical, Inc. stockholders have voted in favor of a merger agreement with KARL STORZ Endoscopy-America, Inc. The virtual special meeting, held on Monday, saw the approval of the merger, where Asensus Surgical will become a wholly-owned subsidiary of KARL STORZ.
The merger agreement, dated June 6, 2024, required a majority vote from the stockholders of Asensus Surgical. Approximately 59.2% of the total shares entitled to vote were represented at the meeting, with a resounding 137,258,840 votes for the resolution, 23,156,038 against, and 1,051,130 abstentions.
Additionally, stockholders approved, on a non-binding advisory basis, certain compensation that may be paid to Asensus Surgical's named executive officers in connection with the merger. The vote for this proposal saw 123,817,981 in favor, 34,078,887 against, and 3,569,139 abstentions.
The third proposal on the agenda, which was to adjourn the special meeting if necessary to solicit additional proxies, was not required as there were sufficient votes to approve the merger agreement.
With the stockholder approval secured, the parties intend to close the merger transaction on August 22, 2024. Asensus Surgical, known for its surgical and medical instruments, will join forces with KARL STORZ, enhancing its capabilities in the medical technology space.
This report is based on a press release statement.
In other recent news, Asensus Surgical Incorporated reported a significant increase in its Q2 revenue, rising to $2.2 million from the previous year's $1.1 million. However, the company also reported a net loss attributable to common stockholders of $25.7 million, with an adjusted net loss of $18.1 million after excluding non-cash charges. The company's cash and cash equivalents stood at $7.8 million as of June 30, 2024.
These are the recent developments surrounding Asensus Surgical Incorporated.
InvestingPro Insights
As Asensus Surgical, Inc. (ASXC) prepares to merge with KARL STORZ Endoscopy-America, Inc., it's important for investors to consider the financial health and market performance of the company. According to InvestingPro data, ASXC has experienced a significant revenue growth of 39.05% over the last twelve months as of Q2 2024, with an even more impressive quarterly growth rate of 104.16%. Despite these robust growth figures, the company's gross profit margins remain in negative territory at -30.45%, underscoring the challenges it faces in converting sales into actual profit.
InvestingPro Tips suggest that ASXC has been grappling with some financial difficulties, such as weak gross profit margins and the fact that short-term obligations exceed liquid assets. Moreover, analysts do not anticipate the company will be profitable this year, which aligns with the reported negative operating income of -71.22M USD. On a brighter note, the company has seen a strong return over the last three months, with a 19.6% price total return, showcasing some investor confidence in its market performance.
With these financial insights, stakeholders can better understand the context of the merger with KARL STORZ. For a more comprehensive analysis and additional InvestingPro Tips, interested parties can explore further at https://www.investing.com/pro/ASXC. There are 5 more tips available that could provide deeper insights into ASXC's financial position and future prospects.
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