VivoSim Labs, INC.
For the period ended Oct 4, 2024. Filed Oct 7, 2024.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Oct 4, 2024 · Filed Oct 7, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. _)
| Filed by the Registrant ☒ | Filed by a Party other than the Registrant ☐ |
|---|
Check the appropriate box:
| ☐ | Preliminary Proxy Statement |
|---|---|
| ☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ☒ | Definitive Proxy Statement |
| ☐ | Definitive Additional Materials |
| ☐ | Soliciting Material under §240.14a-12 |
Organovo Holdings, Inc.
(Name of Registrant as Specified In Its Charter)
Not Applicable
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check all boxes that apply):
| ☒ | No fee required. |
|---|---|
| ☐ | Fee paid previously with preliminary materials. |
| ☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. |
Organovo Holdings, Inc.
11555 Sorrento Valley Rd., Suite 100
San Diego, CA 92121
October 7, 2024
Dear Stockholder:
You are cordially invited to attend this year’s Annual Meeting of Stockholders of Organovo Holdings, Inc. on Wednesday, November 20, 2024 at 9:00 a.m. (Pacific Daylight Time). The Annual Meeting will be completely virtual. You may attend the virtual meeting, submit questions and vote your shares electronically during the meeting via live webcast by visiting www.virtualshareholdermeeting.com/ONVO2024.
On or about October 7, 2024, we will mail our proxy materials to our stockholders, comprised of the enclosed Annual Report, the Notice of Annual Meeting of Stockholders, the Proxy Statement, and proxy card.
The matters to be acted upon are described in the Notice of 2024 Annual Meeting of Stockholders and Proxy Statement. Following the formal business of the meeting, we will respond to questions from stockholders.
Whether or not you plan to virtually attend the meeting, your vote is very important and we encourage you to vote promptly. You may vote by proxy over the internet or by telephone, or you can also vote by mail by following the instructions on your proxy card. If you virtually attend the meeting, you will have the right to revoke your proxy and vote electronically during the meeting via the live webcast. If you hold your shares through an account with a brokerage firm, bank or other nominee, please follow the instructions you receive from your brokerage firm, bank or other nominee to vote your shares.
On behalf of your Board of Directors, thank you for your continued support and interest.
Sincerely yours,
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ORGANOVO HOLDINGS, INC. NOTICE OF 2024 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON NOVEMBER 20, 2024
To Our Stockholders:
The 2024 Annual Meeting of Stockholders (the “Annual Meeting”) of Organovo Holdings, Inc. (“we,” “us,” “our,” “Organovo” or the “Company”) will be held on Wednesday, November 20, 2024, at 9:00 a.m. (Pacific Daylight Time). The Annual Meeting will be completely virtual. You may attend the meeting, submit questions and vote your shares electronically during the meeting via live webcast by visiting www.virtualshareholdermeeting.com/ONVO2024. At the Annual Meeting, our stockholders will be asked:
To elect each of Alison Tjosvold Milhous and Vaidehi Joshi as a Class I director to hold office until the 2027 Annual Meeting of Stockholders and until her respective successor is elected and qualified;
To ratify the appointment of Rosenberg Rich Baker Berman P.A. as our independent registered public accounting firm for the fiscal year ending March 31, 2025;
To approve, on an advisory basis, the compensation of our named executive officers;
To approve the amendment and restatement of the Organovo Holdings, Inc. 2022 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by 1,775,000 shares;
To approve an amendment to the Company’s Certificate of Incorporation, as amended, to effect, in the sole discretion of the Board of Directors of the Company (the “Board”) at any time on or before November 20, 2025, a reverse stock split of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a ratio to be determined by the Board within a range of 1-to-5 to 1-to-20 (or any number in between), without reducing the authorized number of shares of Common Stock and without further approval or authorization of our stockholders; and
To transact such other business as may properly be brought before the Annual Meeting or any adjournments or postponements thereof.
Our Board of Directors recommends a vote FOR each of the director nominees, and FOR proposals 2, 3, 4 and 5 listed above. Stockholders of record at the close of business on September 23, 2024 are entitled to notice of, and to vote on, all matters at the Annual Meeting and any reconvened meeting following any adjournments or postponements thereof. For 10 days prior to the Annual Meeting, a complete list of stockholders entitled to vote at the Annual Meeting will be available for examination by any stockholder, for any purpose relating to the Annual Meeting, during ordinary business hours at our corporate offices located at 11555 Sorrento Valley Rd., Suite 100, San Diego, CA 92121.
All stockholders are invited to attend the virtual Annual Meeting. Whether or not you expect to attend the Annual Meeting, you are urged to vote or submit your proxy as soon as possible so that your shares can be voted at the Annual Meeting in accordance with your instructions. Telephone and internet voting are available. For specific instructions on voting, please refer to the proxy card. If you hold your shares through an account with a brokerage firm, bank or other nominee, please follow the instructions you receive from them to vote your shares.
Important Notice Regarding Availability of Proxy Materials for the Annual Meeting: This Notice of 2024 Annual Meeting of Stockholders, Proxy Statement and Annual Report are available at www.proxyvote.com.
By Order of the Board of Directors
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October 7, 2024
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2024 Proxy Statement Summary
To assist you in reviewing the Proxy Statement for the Organovo Holdings, Inc. (“we,” “us,” “our,” “Organovo” or the “Company”) 2024 Annual Meeting of Stockholders (the “Annual Meeting”), we call your attention to the following summary information about the Annual Meeting, the proposals to be considered at the Annual Meeting and our corporate governance and compensation frameworks. For more complete information, please review our Proxy Statement. Regardless of the number of shares you own, your VOTE is very important. Even if you presently plan to virtually attend the Annual Meeting, please vote or submit your proxy as soon as possible so that your shares can be voted at the Annual Meeting in accordance with your instructions. Telephone and internet voting are available. For specific instructions on voting, please refer to the proxy card. If you do virtually attend the Annual Meeting and wish to vote electronically, you may withdraw your proxy at that time.
Annual Meeting of Stockholders
| Date and Time: | November 20, 2024 at 9:00 a.m. (Pacific Daylight Time) |
|---|---|
| Place: | www.virtualshareholdermeeting.com/ONVO2024 |
| Record Date: | September 23, 2024 |
| Voting: | If you were a “stockholder of record” or beneficial owner of shares held in “street name” as of the Record Date, you may vote your shares. You may vote in person at the Annual Meeting or by the internet, telephone or mail. See the “General Information – Voting Instructions” in the Proxy Statement for more detail regarding how you may vote your shares. |
| Virtual Meeting: | The Annual Meeting will be conducted as a virtual meeting of stockholders by means of a live webcast. We believe that hosting a virtual meeting will enable greater stockholder attendance and participation from any location, improved communication and cost savings to our stockholders. You can virtually attend the Annual Meeting by visiting www.virtualshareholdermeeting.com/ONVO2024, where you will be able to vote your shares and submit your questions during the meeting via the internet. There will not be a physical meeting location and you will not be able to attend in person.The Annual Meeting starts at 9:00 a.m. (Pacific Daylight Time). We encourage you to access the meeting website prior to the start time to allow time for check-in. If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the virtual shareholder meeting login page.You do not need to register to virtually attend the Annual Meeting webcast. Follow the instructions on your proxy card to access the Annual Meeting. |
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Proposals and Voting Recommendations
| Board Vote Recommendation | Page References (for more detail) | |
|---|---|---|
| Proposals: | ||
| (1) Election of two Class I directors each to hold office until the 2027 Annual Meeting of Stockholders and until her respective successor is elected and qualified. | FOR EACHNOMINEE | 7 – 8 |
| (2) Ratification of the appointment of Rosenberg Rich Baker Berman P.A. as our independent registered public accounting firm for the fiscal year ending March 31, 2025. | FOR | 9 – 11 |
| (3) Approval, on an advisory and non-binding basis, of the compensation of our named executive officers. | FOR | 12 |
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| (4) Approval of the amendment and restatement of the Organovo Holdings, Inc. 2022 Equity Incentive Plan (the “Plan”) to increase the number of shares reserved for issuance thereunder by 1,775,000 shares. | FOR | 13-25 |
|---|---|---|
| (5) Approval of an amendment to the Company’s Certificate of Incorporation, as amended, to effect, in the sole discretion of the Board of Directors of the Company (the “Board”) at any time on or before November 20, 2025, a reverse stock split of the Company’s common stock at a ratio to be determined by the Board within a range of 1-to-5 to 1-to-20 (or any number in between), without reducing the authorized number of shares of the Company’s common stock and without further approval or authorization of our stockholders. | FOR | 26-36 |
Current Corporate Governance Summary Facts
We seek to maintain high standards of business conduct and corporate governance, which we believe are fundamental to the overall success of our business, serve our stockholders well and maintain our integrity in the marketplace. The following table summarizes some of the key elements of our current corporate governance framework:
| Size of Board | 6 |
|---|---|
| Number of Independent Directors | 4 |
| Lead Independent Director | Yes |
| Review Board and Board Committee Independence and Qualifications | Annual |
| Board Self-Evaluation | Periodic |
| Hold Executive Sessions | Yes |
| Diverse Board (as to background, experience and skills) | Yes |
| Board has Adopted Corporate Governance Guidelines | Yes |
| Board has Not Amended Charters or Taken Actions to Reduce Stockholder Rights | True |
| Director Meeting Attendance Above 75% | Yes |
| Stock Ownership Guidelines | Yes |
| No Family Relationships Among Officers and Directors | True |
| All Committee Chairs and Other Committee Members Qualify as Independent Directors | Yes |
| Plurality Plus Standard in Director Elections | Yes |
Summary of Compensation Best Practices
Our Board established a Compensation Committee of the Board (the “Compensation Committee”) comprised of three independent directors in accordance with the rules and regulations established by the Securities and Exchange Commission (the “SEC”) and the Nasdaq Capital Market. Our Board has delegated to the Compensation Committee the authority to establish the Company’s executive compensation program and to approve all compensation received by the Company’s executive officers and the other members of its management team. Since October 1, 2020, the Compensation Committee has retained, on an annual basis, Anderson Pay Advisors LLC (“Anderson”) as its independent compensation consultants, to assist it in evaluating the Company’s executive compensation program and selecting an appropriate peer group of comparable companies for purposes of setting executive compensation.
The Compensation Committee periodically reviews best practices in governance and executive compensation. The following is a high-level summary of certain executive compensation practices that the Compensation Committee believes drive Company performance and serve our stockholders’ long-term interests:
| Compensation Committee Comprised of At Least Three Independent Directors | Yes |
|---|---|
| Independent Compensation Consultant Retained | Yes |
| Compensation Committee Members all qualify as “outside directors” and “non-employee directors” | True |
| Compensation Based on Comparison to Peer Group Data | Yes |
| All Directors and Officers Subject to Stock Ownership Guidelines | Yes |
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| Compensation Committee Performs Compensation Risk Assessment | Annual |
|---|---|
| Prohibitions Against all Directors, Officers and Employees Hedging or Pledging Stock | Yes |
| Incentive Plans Based on Performance Metrics | Yes |
| Company Does Not Offer Tax Gross Ups for Severance or Change of Control | Yes |
| Reasonable and Double Trigger Accelerated Vesting Provisions Adopted | Yes |
| No Multi-Year Guaranteed Bonuses | Yes |
| Stock Option Plan Prohibits Option Repricing and Share Recycling | Yes |
| Company Has Not Repriced Options in Last Three Years | Yes |
| No Executive Employment Agreements with Guaranteed Terms | Yes |
| Offer Limited Perquisites to Executives | Yes |
| Consider Prior Year’s Advisory Vote regarding Named Executive Officer Compensation | Yes |
| Terms of Severance Plan Described to Stockholders | Yes |
| Equity Incentive Plans Do Not Contain an “Evergreen” Feature | Yes |
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TABLE OF CONTENTS
| GENERAL INFORMATION | 1 |
|---|---|
| PROPOSAL 1: ELECTION OF DIRECTORS | 7 |
| PROPOSAL 2: RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 9 |
| PROPOSAL 3: ADVISORY VOTE TO APPROVE COMPENSATION OF NAMED EXECUTIVE OFFICERS | 12 |
| PROPOSAL 4: APPROVAL OF AMENDMENT AND RESTATEMENT OF THE ORGANOVO HOLDINGS, INC. 2022 EQUITY INCENTIVE PLAN TO INCREASE THE NUMBER OF SHARES RESERVED FOR ISSUANCE THEREUNDER BY 1,775,000 SHARES | 13 |
| PROPOSAL 5: APPROVAL OF THE REVERSE STOCK SPLIT | 26 |
| BOARD OF DIRECTORS INFORMATION | 37 |
| Information About Our Directors | 37 |
| Board Diversity Matrix | 37 |
| CORPORATE GOVERNANCE | 41 |
| Overview | 41 |
| Corporate Governance Guidelines | 41 |
| Code of Business Conduct | 41 |
| Board Independence | 41 |
| Board Leadership Structure | 42 |
| Board Committees | 43 |
| Board and Committee Attendance | 44 |
| Director Attendance at the Annual Meeting | 44 |
| Executive Sessions | 45 |
| Board Oversight of Risk | 45 |
| Compensation Committee Interlocks and Insider Participation | 45 |
| Stock Ownership Guidelines | 45 |
| Succession Planning | 46 |
| Consideration of Director Nominees | 46 |
| Communications with the Board of Directors | 46 |
| Plurality Plus Standard for Director Elections | 47 |
| DIRECTOR COMPENSATION | 48 |
| Fiscal 2024 Director Compensation Framework | 48 |
| Director Compensation Table | 49 |
| EXECUTIVE OFFICERS | 50 |
| SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 51 |
| EXECUTIVE COMPENSATION | 53 |
| Recent “Say-on-Pay” Vote | 53 |
| Compensation Philosophy and Objectives | 53 |
| Use of Market Data and Benchmarking | 54 |
| Determination of Executive Compensation | 55 |
| Commitment to Good Compensation Governance Practices | 55 |
| Components of Executive Compensation | 56 |
| Other Benefits | 57 |
| Severance Arrangement | 57 |
| Potential Payments upon Termination or Change in Control | 58 |
| Death or Disability Benefits | 58 |
| Summary Compensation Table | 59 |
| Outstanding Equity Awards at Fiscal Year End | 59 |
|---|---|
| ITEM 402(V) PAY VERSUS PERFORMANCE | 61 |
| REPORT OF THE AUDIT COMMITTEE | 64 |
| CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | 65 |
| OTHER MATTERS | 66 |
| PROXY SOLICITATION | 66 |
| STOCKHOLDER PROPOSALS FOR 2025 ANNUAL MEETING | 66 |
| HOUSEHOLDING OF ANNUAL MEETING MATERIALS | 66 |
| ANNEX A: AMENDED AND RESTATED ORGANOVO HOLDINGS, INC. 2022 EQUITY INCENTIVE PLAN | 69 |
| ANNEX B: THIRD AMENDMENT TO CERTIFICATE OF INCORPORATION | 86 |
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11555 Sorrento Valley Rd., Suite 100,
San Diego, CA 92121
PROXY STATEMENT FOR THE 2024 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD NOVEMBER 20, 2024
This Proxy Statement, along with a proxy card, is being mailed and made available to our stockholders on or about October 7, 2024
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.