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Ascent Solar Technologies, Inc. (NASDAQ:ASTI), a semiconductor and solar technology manufacturer, announced a reverse stock split of its common stock at a one-for-one hundred ratio, effective as of 5:00 p.m. Eastern Time on Monday. The move is aimed at boosting the company's stock price to comply with Nasdaq's Minimum Bid Price Requirement.
The reverse stock split reduced the number of Ascent Solar's issued and outstanding shares from approximately 102 million pre-split shares to 1.023 million post-split shares. The company's publicly held shares, also known as the "free float," now stand at approximately 1.021 million shares. This action does not affect the number of authorized shares, which remains at 500 million.
Trading of Ascent Solar's common stock on the Nasdaq began on a split-adjusted basis the following day, Tuesday, with a new CUSIP number of 043635804. The company believes this strategic step will help maintain its listing on the Nasdaq exchange.
The reverse stock split also extends to the company's common stock issuable upon the exercise of outstanding warrants, stock options, and restricted stock units, with corresponding adjustments to the exercise prices and under the company's equity incentive plans.
The Certificate of Amendment, filed with the Secretary of State of Delaware on Sunday, August 13, 2024, made the reverse stock split official. This SEC filing is based on a press release statement from Ascent Solar Technologies, Inc.
In other recent news, Ascent Solar Technologies has announced significant developments in its financial operations and strategic initiatives.
The company recently completed a reverse stock split, aiming to improve market metrics and attract strategic partnerships. This move is part of Ascent Solar's growth strategy, particularly in the space and aerospace industries.
Ascent Solar has also expanded its 2023 Equity Incentive Plan, increasing the number of shares available for issuance from 525,000 to 15,525,000. This decision, approved by shareholders, is designed to attract and retain top talent through competitive compensation packages. Furthermore, David Peterson was elected as a Class C director during the annual meeting, with his term set to end in 2027.
In a significant financial move, the company cleared its obligations under a Securities Purchase Contract, thereby eliminating associated debt. Simultaneously, Ascent Solar secured an order from a leading satellite manufacturer for the delivery of photovoltaic (PV) modules, expected to be manufactured between Q4 2024 and Q1 2025.
Moreover, Ascent Solar has initiated a public offering to raise up to $6 million, with Dawson James Securities, Inc. serving as the exclusive placement agent. These recent developments align with Ascent Solar's growth objectives and its focus on the aerospace sector.
InvestingPro Insights
As Ascent Solar Technologies, Inc. (NASDAQ:ASTI) navigates the complexities of the market with its recent reverse stock split, certain metrics and insights from InvestingPro can provide a deeper understanding of the company's financial health and stock performance. With a market capitalization of just $3.7 million and a negative price-to-earnings (P/E) ratio of -2.79, ASTI's financial position appears challenging. The company's gross profit margin stands at a concerning -908.24% for the last twelve months as of Q2 2024, highlighting operational difficulties. Moreover, the stock's price has experienced significant volatility, with a staggering 1-week total return of -54.52% as of the end of 2024. Despite these hurdles, ASTI holds more cash than debt on its balance sheet, which could provide some financial flexibility.
InvestingPro Tips for ASTI suggest that the stock is currently in oversold territory, indicating potential for a rebound if market sentiment improves. However, it's also noted that the stock has been quickly burning through cash, which could raise concerns about long-term sustainability. For investors looking for comprehensive analysis, InvestingPro offers a total of 17 additional tips that delve into various aspects of ASTI's performance and outlook.
To gain further insights into Ascent Solar Technologies and explore the additional tips, investors can visit InvestingPro at: https://www.investing.com/pro/ASTI
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