Galera Therapeutics (OTC:GRTX), Inc. (OTC Pink Market:GRTX) held a Special Meeting of Stockholders on Thursday, where attendees voted against the proposed liquidation and dissolution of the company. The meeting, which was convened to address the company's future following discontinued business activities and a lack of resources, saw stockholders reject the Plan of Liquidation and Dissolution that would have authorized the board to liquidate the company.
A total of 32,061,280 shares were present or represented by proxy at the Special Meeting, amounting to nearly 59% of the outstanding common stock as of the record date of August 27, 2024. The proposal for liquidation was not approved, with 18,075,579 votes against and 13,938,893 votes in favor. Additionally, a proposal to adjourn the Special Meeting to solicit additional proxies was also rejected, with 17,977,422 votes against and 14,036,711 in favor.
Following the stockholders' decision, the Board of Galera Therapeutics will now consider alternative options for the company's future. The results of the vote were reported in a regulatory filing with the Securities and Exchange Commission on Friday. The filing indicated that the company must now explore other avenues for its business strategy in light of the stockholders' decision.
In other recent news, Galera Therapeutics, Inc. has been facing significant changes in its operations. The pharmaceutical company has been notified of Nasdaq's decision to delist its common stock due to non-compliance with listing rules. The delisting process, which began with the filing of Form 25 with the SEC, is expected to conclude ten days later.
In addition to facing delisting, Galera Therapeutics has announced its Board of Directors' approval of a Plan of Liquidation and Dissolution, indicating the company's intent to dissolve under Delaware law. The plan, pending stockholder approval, will lead to the distribution of remaining cash to stockholders after settling obligations. The company reported a net loss of $4.1 million for the second quarter of 2024, a significant reduction from the $20.7 million loss in the same period last year.
Moreover, Galera Therapeutics has recently settled a legal dispute with two clinical research organizations, Alira Health Clinical, LLC, and IQVIA Biotech, LLC. The lawsuit, which revolved around allegations of contract breach and professional negligence, was settled for a sum of $975,000. This settlement marks the end of a significant challenge for Galera Therapeutics, freeing the company from the burden of ongoing litigation.
InvestingPro Insights
The recent stockholder decision to reject Galera Therapeutics' liquidation plan aligns with some of the challenging financial metrics revealed by InvestingPro data. With a market capitalization of just $3.76 million, GRTX is operating under significant financial strain. InvestingPro Tips indicate that the company is "quickly burning through cash" and "not profitable over the last twelve months," which likely contributed to the consideration of liquidation in the first place.
The company's stock performance has been notably poor, with InvestingPro data showing a one-year price total return of -74.49% as of the latest available data. This decline is reflected in the InvestingPro Tip stating that the "price has fallen significantly over the last year." Despite these challenges, it's worth noting that "2 analysts have revised their earnings upwards for the upcoming period," suggesting there may be some optimism about the company's future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for GRTX, providing a deeper understanding of the company's financial health and market position.
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