Butler National Corporation Announces Board Declassification and Stock Repurchase Program Expansion

Butler National Corporation (OTCMKTS:BUKS) presented its latest developments through an 8-K filing with the Securities and Exchange Commission on October 30, 2024. At the Annual Meeting of Shareholders, company investors sanctioned a crucial amendment to Butler National Corporation’s Bylaws. The modification pertains to the declassification of the Company’s Board of Directors, indicating a significant structural change.

Starting from the 2027 Annual Meeting of Stockholders, the entire Board will be elected on an annual basis, reflecting heightened accountability and transparency within the organization. This decision echoes a detailed description provided in the Company’s Proxy Statement on Schedule 14A, filed with the SEC on September 16, 2024, as supplementary material for stakeholders.

During the Annual Meeting, Butler National Corporation witnessed robust shareholder engagement, with approximately 77.9% of the 68,270,856 outstanding common stock shares eligible for voting represented either in person or via proxy. Key outcomes were seen in the election of directors, with Jeffrey D. Yowell and Joseph P. Daly appointed to serve a three-year term until the 2027 shareholders meeting. Additionally, the ratification of RBSM LLP as the Company’s independent registered public accounting firm for the fiscal year 2025 was successfully endorsed.

Further pivotal decisions included approval of executive compensation in an advisory capacity and the amendment to the Bylaws to destagger the Board of Directors. Shareholders overwhelmingly approved these motions, emphasizing a unified vision for company governance and operations.

A strategic shift in the Articles of Incorporation also received shareholder consent, setting the stage for potential future actions. Investors ratified the amendment to permit a reverse stock split and reduce authorized common stock from 100,000,000 to 50,000,000, pending implementation by the Board before the 2025 Annual Meeting of Stockholders.

In a move to enhance shareholder value and demonstrate confidence in the Company’s financial position, the Board sanctioned a $2 million augmentation in Butler National Corporation’s stock repurchase program. This expansion raises the total program size to $11 million, with $3,172,000 allocated for stock repurchases following the amendment. Additionally, the Board prolonged the stock repurchase program’s duration until November 15, 2026, ensuring continued flexibility in capital management.

The 8-K filing signifies a strategic evolution in Butler National Corporation’s governance structure and financial confidence, underscoring a commitment to sustained growth and shareholder value creation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Butler National’s 8K filing here.

Butler National Company Profile

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally.