Fluent, Inc. stockholders approve issuance of pre-funded warrants By Investing.com

In a recent development, Fluent (NASDAQ:), Inc., a company specializing in advertising services, received approval from its stockholders for the issuance of pre-funded warrants and the conversion of existing warrants into common stock. The decision was finalized during a special meeting of stockholders held on Monday.

The stockholders voted on three key proposals, which were initially detailed in the company’s definitive proxy statement filed on June 4, 2024. The proposals revolved around the issuance and exercise of pre-funded warrants as part of securities purchase agreements dated May 13, 2024, involving certain accredited investors, directors, officers, employees, and a consultant of Fluent, Inc.

A significant majority supported the first proposal, with 8,660,908 votes in favor, allowing for the exercise of the company’s pre-funded warrants into shares of common stock. The second proposal, which involved issuing pre-funded warrants to certain company personnel and a consultant, also passed with 8,659,513 affirmative votes.

The third proposal, which would allow for the adjournment of the meeting to solicit additional proxies if necessary, received 8,543,399 votes in favor. This measure was a precautionary step to ensure the approval of the first two proposals but was ultimately not needed as both received sufficient support.

The meeting displayed a strong presence of the shareholders, with 8,815,360 shares represented in person or by proxy out of the 13,660,598 shares outstanding as of the May 14, 2024, record date. The quorum showcased the shareholders’ active participation and interest in the company’s strategic decisions.

Don Patrick, the Chief Executive Officer of Fluent, Inc., signed off on the SEC filing on July 8, 2024, confirming the outcomes of the meeting and the stockholders’ decisions. This information is based on a press release statement. The stock, which trades under the symbol NASDAQ:FLNT, is expected to reflect these corporate actions in its future market performance.

In other recent news, Fluent Inc. has reported a 14.6% decrease in revenue for the first quarter of 2024, largely attributed to a Federal Trade Commission settlement and a strategic shift away from certain revenue streams. Despite this overall decrease, Fluent’s new performance marketplaces have exhibited strong growth. The company also reported an increased media margin of 33.6% of revenue, up from 28.6% the previous year, and an adjusted EBITDA of $0.7 million.

Fluent anticipates a revenue decline in the first half of 2024 but expects to return to year-over-year growth in the latter half, driven by their emerging businesses targeting over 50% revenue growth this year.

Fluent’s Q1 revenue was $66 million, a 15% decrease from the previous year. The company reported a net loss of $6.3 million and an adjusted net loss of $4.2 million. Despite these challenges, Fluent’s syndicated performance marketplaces showed strong growth year-over-year and are expected to continue this trend.

InvestingPro Insights

In light of Fluent, Inc.’s recent stockholder decisions, a look at real-time data and InvestingPro Tips can provide additional context for investors monitoring the company’s performance. According to InvestingPro, Fluent is trading at a low revenue valuation multiple, which suggests that the market may be undervaluing the company’s sales. This could be an important consideration for investors looking for potential growth opportunities.

Despite a challenging revenue growth environment, with a decline of 17.8% over the last twelve months as of Q1 2024, Fluent has experienced a strong return over the last three months, as indicated by an 18.93% price total return. This resilience in the face of broader market trends could be a signal of underlying strength in the company’s business model or market position.

However, investors should note that analysts do not anticipate Fluent will be profitable this year, and the company has not been profitable over the last twelve months. The company’s market cap stands at 48.5 million USD, and the stock has been quite volatile, which may affect the risk profile of an investment in Fluent.

For those considering an investment in Fluent, Inc., there are additional InvestingPro Tips available that could further inform your decision. For instance, Fluent has a high shareholder yield and does not pay a dividend to shareholders, which could influence your investment strategy depending on your financial goals. To access these insights and more, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro. Currently, there are 9 additional InvestingPro Tips available for Fluent, Inc., which can be found at https://www.investing.com/pro/FLNT.

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