Skyline Medical Inc (NASDAQ: SKLN) is set to provide more details on its joint venture on Sept. 8. If you don’t know what’s happening, Skyline earlier announced entering into an agreement to form a joint venture with Electronic On-Ramp (EOR).
In relation to the agreement, the company will provide a business update that will also address its special meeting of shareholders planned for Sept. 15.
What you ought to know about the JV
First, Skyline Medical Inc. (NASDAQ: SKLN)’s joint venture agreement with EOR cannot proceed unless shareholders of Skyline give it their pressing through a voting process. That is why the company has planned for a special shareholder meeting on Sept. 15 at which shareholders in the company will weigh in on the JV proposal.
Besides the issue of JV, the other matters that Skyline will require its shareholders to vote on are proposals to double the company’s authorized common shares and reverse stock split.
The board of Skyline has proposed to increase the company’s authorized shares to 200 million from the current 100 million. The other proposal is to reserve-split the common shares of Skyline in a ratio between 1-for-2 and 1-for-25. After the reserve stock split, Skyline will also reduce its authorized shares by the same factor of the reverses-split transaction.
Skyline Medical Inc (NASDAQ: SKLN) is betting that the JV with EOR will give it access to federal spending on life safety systems, disaster preparedness, health, security and humanitarian assistance. EOR contracts with the U.S. Department of Defense and National Institutes of Health (NIH) and it already has two contracts with the General Service Administration (GSA).
There are billions of dollars in the government procurement contracts that SKLN and EOR are targeting with their JV arrangement.
Skyline Medical Inc (NASDAQ: SKLN) said that EOR will own 51% of the JV will it will control the rest. Beyond the JV, Skyline and EOR have committed to pursue further strategic opportunities. But Skyline’s special meeting of shareholders will determine whether those dreams are valid.