Shares in regenerative medicine group Avita Medical Inc (ASX: AVH) are in the red today, down 2.78% to $3.50. This means the Avita share price is now down 22.08% over the past month.
Today's falling share price comes amid an announcement from Avita Medical that it was forced to adjourn its annual general meeting (AGM) this morning.
The company was unable to conduct any business at the AGM because it did not achieve the required quorum.
The announcement was deemed non-price sensitive, however the contents are important for investors. Here are the details.
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Why did Avita adjourn its AGM?
The required quorum for the AGM was a simple majority (i.e. 50%) of Avita's common stock being represented at the meeting, either in person or via proxies.
In its announcement, Avita said the proxies it had received represented approximately 49% of its shares outstanding, including CHESS Depositary Interests (CDIs).
As such, the company adjourned its AGM to Thursday, 23 December at 8am AEDT.
The adjournment gives shareholders additional time to vote on the proposals set forth in Avita's definitive proxy statement filed with the United States Securities and Exchange Commission (SEC) and the ASX.
During the adjournment period, Avita will continue to solicit votes from its stakeholders.
Avita Medical investors on the company record as of 26 October are entitled to vote. The voting deadline is now 21 December, which is 2 days before the rescheduled AGM is due to take place. Valid proxies and CDI voting instruction forms that were submitted in time for today's meeting will still be used at the next meeting unless properly revoked.
If Avita fails to reach a quorum for the second time, it will adjourn the AGM again at an additional cost.
What does Avita do?
Avita Medical uses technology to create advanced treatments for patients with burns and chronic wounds.
Avita's first US product, the RECELL System, was approved by the US Food and Drug Administration (FDA) in 2018. It uses a small amount of a patient's own skin to create spray-on skin cells. This drastically reduces the need for donor skin and autografts.
Avita Medical share price summary
In the past 12 months, the Avita Medical share price has plunged 23% into the red.
Investors have lost 6% in value over the past 5 trading days.
