Shareholders said no on July 31. Two weeks later, the board asked again.
At a special meeting that day, Universal Safety Products' stockholders rejected two proposals: one to authorize 25 million shares of preferred stock on terms the board could set without a further shareholder vote, and one to create a new class of common stock carrying 25 votes per share against one vote for ordinary shares. Both failed, according to an 8-K the company filed with the SEC afterward. Fourteen days later, on August 14, the company filed a new preliminary proxy containing the same two proposals, with the same board recommendation to vote for both. The filing gave no reason for resubmitting the defeated measures.
Shares closed 18.95% higher at $4.5200 on August 18, on dollar volume of about $363,000.
What that means for a shareholder: blank-check preferred, once authorized, can be issued by the board at any time on whatever terms directors choose — voting powers, conversion rights, liquidation preferences — without another vote. The 25-vote Class B structure would let whoever holds that stock outvote ordinary shareholders by a wide margin on any company decision. Both tools, if approved, reduce the weight of the ordinary share going forward.
The quarterly filing the company submitted the same day as the new proxy fills in the backdrop. Its remaining products — ground-fault circuit interrupters and ventilation fans — brought in about $110,000 in net sales in the quarter ended June 30, 2026. The filing states that the company may not survive the next year without new funding — what auditors call a going-concern warning. Cash on hand was about $3.7 million.
The business meant to generate the next chapter of revenue is Universal DeFi, a subsidiary operating nodes on the Ault Blockchain network. As of June 30, it held about 425 million AULT Tokens — which the filing says were not traded on any exchange, with no observable market price, so no revenue has been recognized. Under an agreement signed June 30, Universal DeFi will pay 25% of any proceeds from token sales to Ault Capital Group, up to a cumulative total of $93.75 million. That cap applies to a token that, as of the filing date, had never been traded.
The filing does not say what the board plans if shareholders reject the proposals a second time.