Shares of NexImmune (NASDAQ:NEXI) stock are skyrocketing higher ahead of the company’s special meeting of stockholders. The meeting was initially set for Dec. 21 with a record date of Nov. 6. However, the number of shares present or represented by proxy at the meeting was insufficient to reach a quorum. As a result, the meeting was adjourned to Jan. 18 while the record date remained unchanged.
Only one real material proposal will be voted on during the meeting. The proposal seeks approval for the liquidation and dissolution of the company, which NexImmune is in favor of:
“In general terms, when we dissolve, we will cease conducting our business, wind up our affairs, dispose of our non-cash assets, pay or otherwise provide for our obligations, and distribute our remaining assets, if any, during a post-dissolution period of at least three years, as required by the DGCL,”
NEXI Stock Soars Ahead of Special Meeting
NexImmune’s board approved a liquidation and dissolution plan on Nov. 2, although the company needs shareholder approval to enact it. This move followed the layoff of almost all of the company’s employees except the ones needed to help the company wind down.
NexImmune has disclosed that it does not expect to provide shareholders with cash or any distribution in the event of a dissolution. The company’s prediction is preliminary and is based on factors “subject to change and outside of our control.” Following shareholder approval, NexImmune plans to sell the rest of its non-cash assets, such as its patents and intellectual property (IP).
NEXI stock seems to be just one of many incidents in recent years where a company’s stock price has been bid up in correlation with the uncertainty of its future. Shares of NEXI are already up by about 400% in 2024. On top of that, the stock’s recent gains don’t seem to be attributed to a short squeeze but rather an influx of buyers. As of Dec. 15, there were only 35,700 shares of NEXI sold short. That equates to a short interest as a percentage of float of 5.4%, which isn’t considered to be high.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
