DEFA14A: Eyenovia Receives Key Proxy Advisor Support for Proposed Reverse Stock Split

Eyenovia announces that ISS and Glass Lewis recommend stockholders vote FOR the proposed reverse stock split at the upcoming special meeting.

Summary

• Eyenovia, Inc. announced that Institutional Shareholder Services (ISS) and Glass Lewis & Co. have recommended that stockholders vote in favor of the proposed reverse stock split at the upcoming Special Meeting of Stockholders.
• The Special Meeting will address four proposals, including the reverse stock split at a ratio of between 1:40 and 1:80, an amendment to the 2018 Omnibus Stock Incentive Plan to reserve an additional 350,000 shares, approval for the potential issuance of up to 73,029,273 shares upon the exercise of certain outstanding warrants, and authorization to adjourn the meeting if necessary.
• The reverse stock split aims to regain compliance with Nasdaq's Minimum Bid Price Requirement.
• The company believes maintaining its Nasdaq listing is crucial for increased visibility, stock liquidity, and access to capital.
• The Special Meeting will be held virtually on January 21, 2025, and stockholders must pre-register by January 20, 2025.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the support from ISS and Glass Lewis, which increases the likelihood of the reverse stock split being approved. However, the need for a reverse stock split also indicates underlying financial challenges.

Positives

• Support from ISS and Glass Lewis increases the likelihood of the reverse stock split being approved.
• Regaining compliance with Nasdaq's Minimum Bid Price Requirement is expected to improve the company's visibility and access to capital.
• Management believes the Nasdaq listing confers increased visibility, stock liquidity, and access to capital.

Risks

• The reverse stock split may not be approved by stockholders.
• Even if approved, the reverse stock split may not be sufficient to maintain Nasdaq listing compliance.
• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Future Outlook

The company intends to regain compliance with Nasdaq's Minimum Bid Price Requirement through the proposed reverse stock split. The company hopes to continue to benefit from the increased visibility, stock liquidity, and access to capital that a Nasdaq listing confers.

Management Comments

• 'We are very pleased that both ISS and Glass Lewis have come out in favor of the proposed reverse stock split to be considered at our upcoming Special Meeting,' stated Michael Rowe, Chief Executive Officer of Eyenovia.
• He added that it is a priority for the company to retain its Nasdaq Capital Market exchange listing.

Industry Context

Reverse stock splits are often used by companies to increase their stock price to meet minimum listing requirements of exchanges like Nasdaq. This is a common strategy for companies facing delisting.

Stakeholder Impact

• Shareholders will be directly impacted by the reverse stock split, if approved.
• Employees may be indirectly affected by the company's ability to maintain its Nasdaq listing.
• The company's ability to access capital markets could be affected by the outcome of the vote.

Next Steps

• Stockholders will vote on the proposed reverse stock split and other proposals at the Special Meeting on January 21, 2025.
• The company will implement the reverse stock split if approved by stockholders.

Key Dates

Keywords

Eyenovia, reverse stock split, proxy advisory firms, ISS, Glass Lewis, Special Meeting, Nasdaq, minimum bid price, stockholders