Source: investing, 7/11/2024, Thursday
Fuel Cell Energy, Inc. (NASDAQ:FCEL) announced that the reverse stock aggregation of its shares will be effective after the market closes on November 8, 2024 The company aims to meet the minimum offer price requirements on the NASDAQ and attract a wider investor base by merging every 30 existing shares into one new common stock.
The reverse stock aggregation will uniformly affect all holders of common stock.
while maintaining their relative ownership shares, except for adjustments resulting from fractional shares. Shareholders who were supposed to receive fractional shares will receive a cash payment instead.
calculated based on the closing price of Fuel Cell Energy share on November 8, 2024.
Fuel Cell Energy’s common stock will continue to trade on the Nasdaq Global Market under the symbol FCEL, with the new CUSIP number 35952H700. Trading of the Company’s common stock on a post-consolidation basis is expected to commence on November 11, 2024.
The total number of authorized shares and the nominal value of ordinary shares will remain unchanged. Equiniti Trust Company, LLC will act as the exchange agent for the reverse stock pooling process. Shareholders holding shares electronically in book form or through an intermediary will not need to take any action to reverse the change. Those with physical share certificates will receive instructions from Equiniti Trust Company, LLC regarding share exchange and receipt of cash instead of fractional shares.
This strategic move is designed to help Fuel Cell Energy regain compliance with Nasdaq’s minimum bid price rule.
which requires stocks to maintain a minimum bid price of $1.00 per share. Compliance with this requirement is crucial for the company to maintain its listing on the stock exchange.
Fuel Cell Energy is a prominent player in sustainable energy technologies.
holding a large number of patents and providing solutions to global energy challenges.
The details in this article are based on a press release from the company.
In other recent news, Fuel Cell Energy has secured a $9.4 million financing agreement with the US Export-Import Bank (EXIM) to support fuel cell projects in South Korea. The funding will support a purchase agreement with Gyeonggi Green Energy For forty-two improved 1.4 MW carbon fuel cell modules. The company expects to generate revenue of approximately $160 million over the period of the agreement.
The company reported total revenue of $23.7 million and a net loss of $35.1 million in its latest quarterly performance. Despite the financial loss, Fuel Cell Energy increased its order backlog to $1.2 billion.
In terms of analyst valuations, Key Banc maintained the Sector Weight rating of the company’s shares.
while TD Cowen maintained the Hold rating. Both companies highlighted Fuel Cell Energy’s commitment to managing expenses and maintaining capital discipline. These are the latest developments in Fuel Cell Energy’s operations.
With Fuel Cell Energy (NASDAQ:FCEL) preparing to reverse accumulate its shares.
Investing Pro data provides additional context for the company’s financial situation. With a market capitalization of $192.94 million, FCEL is trading at a low P/B multiple of 0.29.
reflecting the company’s current market valuation compared to its book value.
The financial health of the company presents a mixed picture. It highlights advice from Investing Pro that FCEL holds more cash than debt on its balance sheet.
which could provide some financial flexibility as it moves in this transition. However, another tip warns that the company burns cash quickly.
which may explain the need for strategic moves such as reverse stock pooling.
FCEL’s revenue for the past twelve months was $85.27 million, with alarming revenue growth of -39.15% over the same period. This is in line with another advice from Investing Pro indicating that analysts expect a decline in sales this year.
The stock has been underperforming, with a one-year gross price return of -69.56% according to the latest data. This poor performance over the past year underscores the company’s difficulty in keeping its share price above the minimum requirements of the Nasdaq.
Investors considering FCEL should note that Investing Pro offers 15 additional tips for this stock, providing a more comprehensive analysis of the company’s prospects and challenges. These insights can be valuable for understanding the full implications of reverse stock aggregation and FCEL’s future trajectory in the sustainable energy sector.
