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FORT MILL, South Carolina - Alternus Clean Energy Inc. (NASDAQ: ALCE), a utility-scale clean energy independent power producer, has announced a 1-for-25 reverse stock split of its common stock, effective at the start of trading on the Nasdaq Capital Market on Friday, October 11, 2024. This action follows approval by the company's stockholders on September 26, 2024, and is aimed at boosting the company's stock price to comply with the Nasdaq's minimum bid price requirement.
The reverse stock split will reduce Alternus' outstanding common stock from approximately 87.3 million shares to about 3.5 million shares, maintaining the par value of $0.0001 per share and the total number of authorized shares. The company's stock will continue to trade under the ticker "ALCE," but with a new CUSIP number 02157G 200.
No fractional shares will be issued as a result of the reverse stock split. Instead, shareholders entitled to a fractional share will receive a cash payment. Stockholders of record as of October 10, 2024, will be contacted by the company's transfer agent, Equiniti Trust Company, with details regarding their share ownership post-split.
CEO Vincent Browne stated that the reverse stock split is part of a broader strategy to regain Nasdaq compliance and does not alter the company's fundamental value. Browne highlighted recent efforts to de-leverage the company's balance sheet and mentioned a joint venture with Hover Energy, LLC as part of Alternus' growth strategy. The company is actively seeking additional partnerships and acquisitions in renewable energy segments to bolster its utility-scale solar IPP business.
Alternus, with operations in North America and Europe, has set a goal to achieve 3GW of operating projects within five years through organic growth and strategic initiatives. This move is intended to strengthen the company's foundation for long-term shareholder value.
The information in this article is based on a press release statement and should be considered in the context of the risks and uncertainties outlined by the company, including those detailed in their SEC filings.
In other recent news, Alternus Clean Energy has been making significant strides in its corporate operations. The company has seen an increase in its authorized shares of common stock from 150 million to 300 million, providing more flexibility for future needs. The company's shareholders also elected John McQuillan as a Class I director, and expanded the company's 2023 Equity Incentive Plan. The company is also facing a potential Nasdaq delisting due to non-compliance with the minimum bid price requirement and is planning a reverse stock split to regain compliance.
Alternus Clean Energy terminated its agreement to acquire an 80MWp portfolio of solar installations from C2 Taiyo Fund I, LLP due to unmet closing conditions. Despite this, the company continues to focus on organic growth and strategic acquisitions, including a recent joint venture with Hover Energy. Alternus Clean Energy has also expanded its Hawaii projects through a partnership with Hover Energy LLC and Hawaii Construction & Development Consulting. The company has secured an extension of the waiver of certain financial covenants related to its green bonds until August 30, 2024.
Lastly, Alternus Clean Energy has announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million. This acquisition is expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million. These are the recent developments for Alternus Clean Energy.
InvestingPro Insights
Alternus Clean Energy's recent announcement of a reverse stock split comes amid challenging market conditions for the company. According to InvestingPro data, ALCE has experienced a significant price decline, with a year-to-date total return of -90.39% and a one-year total return of -98.64%. This steep decline underscores the urgency of the company's efforts to regain Nasdaq compliance through the reverse split.
InvestingPro Tips reveal that ALCE is currently trading near its 52-week low, which aligns with the company's decision to implement the reverse split to boost its stock price. Additionally, the stock generally trades with low price volatility, which may provide some stability as the company implements its strategic changes.
It's worth noting that Alternus Clean Energy does not pay a dividend to shareholders, focusing instead on growth and operational improvements. This approach is consistent with the company's stated goal of achieving 3GW of operating projects within five years and its pursuit of partnerships and acquisitions in the renewable energy sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for ALCE, providing deeper insights into the company's financial health and market position.
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