Lendway Inc. (LDWY) witnessed a substantial increase in its stock value during after-hours trading, climbing by almost 20%. This notable surge comes after the company officially declared an expansion in its authorized common stock. This strategic move, which has been formally recorded, is expected to enhance the company's financial maneuverability and potentially open doors for future growth initiatives.
The financial institution submitted a Certificate of Amendment to the Delaware Secretary of State. This amendment legally raises the company's authorized common stock from 5.71 million to an expanded total of 10 million shares. The common stock maintains a par value of $0.01 per share, and the change was enacted immediately upon filing.
This decision to increase the authorized share count received overwhelming approval from shareholders. Approximately 1.17 million votes were cast in favor of the proposal, with 223,490 against, and 5,241 abstentions. The company's Board of Directors had previously passed resolutions authorizing this increase on September 26, indicating a well-considered and coordinated effort to adjust the company's capital structure.
In other corporate news, during the company's Annual Meeting held on the same day as the board's resolution, six individuals were elected to serve as directors. These directors will hold their positions for a one-year term, or until their successors are duly chosen. Elizabeth E. McShane, the Chief Financial Officer, officially signed the relevant filing on Thursday.
Despite this recent positive movement, Lendway's stock has faced challenges throughout the year, recording a 26.92% decline year-to-date. Its annual trading range spans from $3.37 to $6.19, with a current market capitalization of $6.05 million. According to Benzinga's Edge Stock Rankings, LDWY has shown a negative price trend across various timeframes, suggesting that while this recent jump is significant, it's occurring within a broader context of downward pressure.
The expansion of authorized shares by Lendway Inc. signals a proactive step towards bolstering its financial framework and operational capacity. This development, while causing an immediate positive reaction in the market, will be observed keenly for its long-term impact on the company's stock performance and overall market standing.