Volato Group, Inc. (NYSE American: SOAR), a non-scheduled air transportation service provider, has entered into indemnification agreements with its directors and executive officers, according to an 8-K filing with the Securities and Exchange Commission. The agreements, approved by the company's board on Thursday, August 23, 2024, aim to indemnify and hold harmless its directors and officers to the fullest extent permitted by law.
The indemnification agreements stipulate that Volato Group will advance expenses to the directors or officers under certain conditions and outlines the procedures for indemnification and expense advancement. Additionally, the company is required to maintain directors’ and officers’ liability insurance.
However, the agreements do not cover actions initiated by the directors or officers themselves or proceedings by the company to enforce non-compete or non-disclosure agreements.
In a related development, on August 28, 2024, Volato Group amended its bylaws to change the quorum requirement for stockholder meetings. The new bylaw sets the quorum at one-third of all issued and outstanding shares entitled to vote, a reduction from the previous majority requirement. This amendment will be in effect for the company's Special Meeting of Stockholders scheduled for October 3, 2024.
Furthermore, the company has also approved a form of Stock Option Agreement under the Volato Group, Inc. 2023 Stock Incentive Plan, which was established earlier on June 7, 2024. This agreement will govern the granting of stock options to eligible recipients under the plan.
In other recent news, Volato Group, Inc. has secured a $4 million loan from TVT Capital Source LLC, with a repayment schedule set for January 2025. The loan agreement includes a provision for a reduction in the total repayment amount if repaid within specific time frames.
The company has also held its annual stockholder's meeting where two Class I director nominees were elected to the board and an Employee Stock Purchase Plan was ratified.
Furthermore, Volato Group has faced compliance issues with NYSE American standards, receiving a notice regarding non-compliance with the exchange's continued listing standards. The company now needs to submit a plan to regain compliance by December 2024.
In addition to these developments, the company has undergone a significant reconfiguration of its Board of Directors, reducing its size from seven to five members. This reshuffle includes the addition of Christopher G. Burger and Fred A. Colen, both seasoned professionals from the technology and aviation sectors.
Finally, Volato has scheduled its first quarter 2024 earnings conference call, set to discuss the company's financial results. These are among the recent developments for the company.
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