Banzai International, Inc. (NASDAQ:BNZI) shareholders have approved a reverse stock split of the company's Class A Common Stock, as disclosed in a recent SEC Form 8-K filing. The decision came during a special meeting held on Monday, where a majority of Class A and Class B stockholders voted in favor of the reverse stock split at a ratio of up to 1-for-50. The exact ratio and timing are to be determined by the board of directors, who also reserve the right to abandon the amendment.
In addition, shareholders authorized the adjournment of the special meeting, if necessary, to solicit more proxies in case there weren't enough votes to approve the reverse split proposal. This motion passed with a majority vote from the shares present or represented by proxy.
Banzai International, headquartered in Bainbridge Island, Washington, operates in the prepackaged software industry under the SIC code 7372. The company, previously known as 7GC & Co. Holdings Inc., changed its name on September 24, 2020.
In other recent news, Banzai International has been grappling with potential delisting from Nasdaq due to non-compliance with the minimum Market Value of Listed Securities requirement. The company has expressed its intention to request a hearing before The Nasdaq Hearings Panel to challenge this.
On another front, Banzai International has seen a major management change with the resignation of its CFO, Mark Musburger, and the appointment of Alvin Yip as interim CFO.
The software services company also disclosed plans for a public stock offering to raise approximately $2.5 million by offering around 13.9 million shares of common stock and warrants at $0.18 each, with A.G.P./Alliance Global Partners (NYSE:GLP) acting as the sole placement agent. Banzai has also entered into a year-long media contract with FMW Media Corp.'s New to The Street, which will involve the production and broadcast of interviews with Banzai's management team.
Ascendiant Capital has initiated coverage on Banzai International with a Buy rating and a price target of $3.00, based on a 12-month projection using a Net Present Value analysis. In addition, Banzai reported significant customer growth in May 2024, with 110 new and 59 reactivating customers, contributing to a year-to-date total of 979 sign-ups.
InvestingPro Insights
As Banzai International, Inc. (NASDAQ:BNZI) navigates through its reverse stock split, current InvestingPro data provides a snapshot of the company's financial health. With a market capitalization of just $3.3 million, the company's stock price has been significantly volatile, as indicated by a 1-week price total return of -23.02% and a staggering 1-year price total return of -99.19%. This volatility is underscored by the InvestingPro Tip that BNZI's stock price often moves in the opposite direction of the market, which can be a point of interest for contrarian investors.
Moreover, Banzai International's current financial metrics reveal challenges, with a negative revenue growth of -8.46% over the last twelve months as of Q2 2024, and a concerning operating income margin of -287.32%. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. For investors considering the long-term prospects of BNZI, it's worth noting that the stock has not been profitable over the last twelve months and is currently trading near its 52-week low.
Interested in more insights? InvestingPro offers 12 additional tips for Banzi International, Inc., which can be found at https://www.investing.com/pro/BNZI, providing a deeper dive into the company's performance and market position.
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