Zoomcar Holdings, Inc. (NASDAQ:ZCAR), a company specializing in auto rental and leasing services, announced the adjournment of its 2024 annual meeting of stockholders due to insufficient quorum. The meeting was originally convened on September 26, 2023, and after failing to meet the quorum requirement, it was adjourned to October 1, 2024. The lack of a sufficient number of shares present in person or represented by proxy to constitute a quorum has led to a further adjournment.
The company has scheduled the reconvened annual meeting for Friday, October 4, 2024, at 10:00 a.m. Eastern Time. Stockholders of record as of the close of business on July 29, 2024, are entitled to vote at the annual meeting. Zoomcar has made provisions for stockholders to cast their votes online at http://www.proxyvote.com prior to the meeting or at http://www.virtualshareholdermeeting.com/ZCAR2024 during the reconvened meeting. They may also vote by calling 1-800-690-6903.
Zoomcar has stated that stockholders who have already voted and do not wish to change their vote need not take any further action. There have been no changes to the proposals to be voted on by stockholders at the annual meeting.
The company has urged all stockholders to review the definitive proxy statement filed with the SEC on September 3, 2024, which is available on the SEC's website, Zoomcar's investor relations website, and on the voting platform at www.proxyvote.com.
This development is a procedural step in corporate governance, ensuring that all stockholders have the opportunity to exercise their voting rights. Zoomcar Holdings, Inc., headquartered in Bangalore, India, is listed on The Nasdaq Stock Market LLC under the symbols ZCAR for its common stock and ZCARW for its warrants.
This report is based on a press release statement and provides information on the company's efforts to convene its stockholder meeting in compliance with regulatory requirements.
In other recent news, Zoomcar Holdings, Inc. has announced significant developments. The company has postponed its Annual Meeting of Stockholders to October 1, 2024, to provide stockholders more time to vote on several proposals. The auto rental service company has also set a new deadline for shareholders' proposals and director nominations for the upcoming annual meeting.
Zoomcar faces potential delisting from Nasdaq due to non-compliance with the minimum market value requirement. The company has been given a 180-day period, ending January 21, 2025, to regain compliance. The company has also announced a 50% salary reduction for its interim CEO, Hiroshi Nishijima, effective retroactively from June 1, 2024.
In addition, the departure of its President, Mr. Adarsh Menon, effective as of June 30, 2024, has been reported. The company has not yet named a successor for Mr. Menon and has given no indications about its plans for complying with new or revised financial accounting standards. These are recent developments in the company's operations.
InvestingPro Insights
Zoomcar Holdings' struggle to achieve quorum for its annual meeting may be indicative of broader challenges facing the company. According to InvestingPro data, Zoomcar's market capitalization stands at a modest $10.07 million, reflecting its current financial position. The company's revenue for the last twelve months as of Q1 2025 was $9.52 million, with a concerning revenue growth rate of -4.35% over the same period.
InvestingPro Tips highlight several red flags for potential investors. The company is operating with a significant debt burden and may have trouble making interest payments. Additionally, Zoomcar is quickly burning through cash, which aligns with its negative operating income of -$23.66 million for the last twelve months as of Q1 2025.
The stock's performance has been particularly troubling, with InvestingPro data showing a staggering year-to-date price total return of -96.4% as of the 277th day of 2024. This poor stock performance is further emphasized by an InvestingPro Tip indicating that the stock price has fallen significantly over the last year and three months.
These insights provide context to the company's current situation and may explain the challenges in engaging stockholders for the annual meeting. Investors considering Zoomcar should be aware of these financial indicators and the company's ongoing operational difficulties.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Zoomcar, providing a deeper understanding of the company's financial health and market position.
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