Cyabra, Inc. (Nasdaq: CYAB) announced that stockholders approved the conversion and exchange of all outstanding preferred stock at a special meeting held on September 2, 2026, with approximately 98% of votes cast in favor.

Upon closing of the transactions, all three series of Cyabra's preferred stock will be eliminated. Series A and Series B preferred stock will convert into common stock, while Series C preferred stock will be exchanged for common stock and warrants. Certain holders will receive pre-funded warrants in lieu of common stock. The result will be a single class of equity outstanding.

The closing will also eliminate conversion price reset provisions attached to the existing preferred stock. Under the prior terms, securities issuances below the applicable conversion price during an 18-month protection period could have lowered the conversion price and increased the number of common shares issuable upon conversion.

The transactions were conducted alongside a $6.0 million private placement completed in July 2026, priced at a premium to the market price at that time, with participation from new and existing institutional investors, management, and board members. Stockholders also approved an amendment to the company's 2026 Equity Incentive Plan at the meeting.

"Upon the closing of the conversion and exchange agreements, all of these classes of preferred stock will be gone. Cyabra will have one class of stock," said Dan Brahmy, Co-Founder and Chief Executive Officer.

The announcement follows Cyabra's second-quarter 2026 results, in which the company reported quarterly revenue of $1.9 million, up 39% year over year, and annual recurring revenue of $8.1 million as of June 30, 2026, up 29% year over year, at approximately 84% gross margin. During the quarter, Cyabra signed a contract valued at more than $500,000 with an international research institute and secured a new European government customer. After the quarter ended, the company announced a multi-year, six-figure agreement with an Asia-Pacific intelligence agency.

The transactions remain subject to remaining closing conditions. Cyabra separately filed an amendment to a registration statement covering the resale of securities associated with the July 2026 offering, which has not yet been declared effective.