In a recent shareholder meeting, TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) received approval for three significant proposals, including a reverse stock split aimed at maintaining compliance with Nasdaq's minimum bid price requirement.
On Tuesday, the company held its 2024 Annual Meeting of Shareholders, where a quorum was achieved with over 12 million shares represented. Shareholders elected Dr. Lim Boh Soon and Ms. Elissa J. Shane to the Board of Directors for a three-year term. The voting results favored both nominees with over 10 million votes each.
Additionally, shareholders ratified the appointment of Rosenberg Rich Baker Berman & Co. as the independent registered public accounting firm for the fiscal year ending December 31, 2024. The approval saw a significant majority, with over 12 million votes in favor.
The most notable outcome of the meeting was the approval of a reverse stock split, granting the Board of Directors the discretion to implement a split at a ratio between 1-for-3 and 1-for-7. This strategic move is intended to boost the company's stock price above the $1.00 minimum bid price, a requirement for continued listing on the Nasdaq Capital Market. The proposal received substantial support, with approximately 11.6 million votes in favor.
TOMI Environmental Solutions, headquartered in Frederick, Maryland, specializes in industrial organic chemicals and has undergone several name changes in its history, with former names including Ozone Man, Inc. and RPS Group (LON:RPS) Inc.
In other recent news, TOMI Environmental Solutions, Inc. reported a strong financial performance in its third-quarter 2024 financial results call. The company announced its second consecutive profitable quarter, with revenues rising to approximately $2.5 million, marking a 73% increase year-over-year. The company's mobile equipment sales surged by 90%, and its IHP service revenue hit a record $650,000.
TOMI is experiencing robust sales growth, particularly in its mobile equipment and IHP service segments. The company is optimistic about future growth, with a focus on international expansion and new product launches. TOMI aims to exceed $10 million in revenues for the upcoming year, with strategies including enhancing marketing in the food processing sector and leveraging innovative contamination control technologies.
These are recent developments that have seen TOMI's international sales grow by 82% year-to-date, with significant new client acquisitions including Pfizer (NYSE:PFE) and Thermo Fisher Scientific (NYSE:TMO). The company's SteraMist Pro Certified program is set to expand service offerings, and the company is confident in the broad applicability of its technology across various industries.
InvestingPro Insights
TOMI Environmental Solutions' recent shareholder approval for a reverse stock split aligns with its current financial situation, as revealed by InvestingPro data. The company's market cap stands at a modest $15.81 million, with a negative P/E ratio of -6.14, indicating recent unprofitability. This is further supported by an InvestingPro Tip noting that TOMI "has not been profitable over the last twelve months."
Despite these challenges, TOMI shows some positive indicators. The company boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 60.08% for the last twelve months. This strength is highlighted by an InvestingPro Tip, suggesting potential for improved financial performance if operational efficiencies can be achieved.
However, investors should be cautious. Another InvestingPro Tip warns that TOMI is "quickly burning through cash," which could explain the need for strategic moves like the reverse stock split. The company's liquid assets currently exceed short-term obligations, providing some financial flexibility as it navigates these challenges.
For a more comprehensive analysis, InvestingPro offers 5 additional tips on TOMI Environmental Solutions, providing deeper insights into the company's financial health and market position.
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