MINNEAPOLIS-based Sezzle Inc., a company specializing in business services, announced amendments to its Articles of Incorporation and changes in its fiscal year following a recent annual meeting of stockholders. The changes, filed with the SEC, reflect a shift in shareholder rights and a simplification of the company's stock structure.
At the annual meeting held on Monday, shareholders voted to approve the company's Fifth Restated Certificate of Incorporation. This new certificate enables shareholders to take action by written consent, aligning with Section 228(a) of the Delaware General Corporation Law. This amendment removes the previous restriction and allows for actions to be authorized with the minimum required votes without the need for a formal meeting.
Another significant change is the removal of 300 million authorized shares of "common prime stock" from the company's charter. These shares were initially part of Sezzle's public offering and listing on The Australian Securities Exchange (ASX) in 2019. Following the company's delisting from the ASX in 2023, the need for common prime stock was eliminated, leading to this simplification.
The revised certificate also includes the election of directors, with all nominated members being elected by a majority of votes. Additionally, the selection of an independent accounting firm was ratified with an overwhelming majority.
The amendments to the Articles of Incorporation were made effective upon their acceptance by the Secretary of State of Delaware on Tuesday.
This news is based on a press release statement and the company's recent SEC filing.
In other recent news, Sezzle Inc. has made significant adjustments to its credit and guaranty agreements, as well as its partnership with WebBank. The company has amended its financial covenants related to tangible net worth and restricted payments, revising the conditions under which it can distribute dividends or repurchase its common stock.
Sezzle is now allowed to make restricted payments as long as it maintains a positive net income over the trailing twelve months. The company has also revised its agreements with WebBank, bolstering its role in issuing its subscription products, Sezzle Anywhere and Sezzle Premium.
In addition to these changes, Sezzle has seen significant board alterations with the departure of Michael Cutter and Paul Alan Lahiff and the appointment of Stephen F. East and Kyle M. Brehm. The company has also received a Buy rating from B. Riley, which highlighted Sezzle's potential for high growth at a low marginal cost.
InvestingPro Insights
Sezzle Inc.'s recent corporate governance changes align with its strong financial performance and market position. According to InvestingPro data, the company's market capitalization stands at $2.5 billion, reflecting significant investor confidence. This is further supported by Sezzle's impressive revenue growth of 49.13% over the last twelve months as of Q3 2023, with quarterly revenue growth reaching 71.28% in the same period.
InvestingPro Tips highlight that Sezzle's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook is reinforced by the company's strong financial metrics, including a high operating income margin of 45.19% and a return on assets of 25.92%.
The stock's performance has been exceptional, with a staggering 4,084.33% price total return over the past year. This aligns with the InvestingPro Tip indicating that Sezzle is trading near its 52-week high, currently at 96.73% of that peak.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for Sezzle, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.