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ROSH HA’AYIN, Israel - Thermal energy storage provider Brenmiller Energy Ltd. (NASDAQ:BNRG), currently trading at $0.46 with a market capitalization of $5.15 million, announced Wednesday it will implement a reverse share split at the close of trading on the Nasdaq Capital Market. According to InvestingPro data, the stock has declined over 64% year-to-date, highlighting the challenging market conditions facing the company.
The company described the move as a "strategic and proactive decision" to protect shareholder value as it approaches what CEO Avi Brenmiller called "a critical period of execution" on business objectives. InvestingPro analysis reveals the company’s financial health score is currently rated as WEAK, with metrics showing the company is quickly burning through cash despite maintaining a healthy current ratio of 2.25.
In a letter to shareholders, Brenmiller emphasized that while the reverse split changes the number of shares outstanding, it does not impact ownership percentages, affecting all shareholders equally.
"Our Company’s founders and management, including myself, continue to have significant holdings in Brenmiller Energy," Brenmiller stated in the press release.
The company reports having commissioned and built over 100 MWh of thermal energy storage projects across Europe, the U.S., and the Middle East during its decade of operation. Brenmiller also claims a $500 million pipeline of commercial opportunities and 4GWh of manufacturing capacity.
Brenmiller Energy’s primary product is its bGen ZERO thermal battery, which the company describes as a system that converts renewable electricity into heat for industrial applications.
The company did not specify the ratio of the reverse split in the announcement. Reverse splits are typically implemented to increase share price and maintain compliance with exchange listing requirements.
The announcement comes as Brenmiller aims to reach "key implementation milestones for commercial deployment" in the near term, according to the statement based on the company’s press release. For investors seeking deeper insights into BNRG’s valuation and financial health, InvestingPro offers 15 additional exclusive tips and comprehensive financial metrics to help navigate this critical transition period.
In other recent news, Brenmiller Energy Ltd. has announced several significant developments. The company is implementing a 5-for-1 reverse share split, reducing its outstanding ordinary shares from 13,629,259 to 2,725,852. Additionally, Brenmiller has secured a €7 million deal as part of the SolWinHy Project in Spain, aimed at building green hydrogen and e-methanol facilities. The company also launched a public offering of ordinary shares and warrants, intending to raise approximately $1.5 million for general corporate purposes. In a strategic move to accelerate its path to positive cash flow, Brenmiller is restructuring its corporate framework by establishing European subsidiaries to attract private capital. The company is also nearing completion of its flagship Tempo project in Israel, which aims to replace fossil fuel boilers with clean energy technology. Brenmiller’s CEO, Avi Brenmiller, highlighted the company’s efforts in cost-cutting and streamlining operations to prepare for scalable growth. These developments reflect Brenmiller Energy’s ongoing strategic measures to strengthen its core business and explore opportunities for future growth.
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