Icon Energy announces 1-for-40 reverse stock split

ATHENS - Icon Energy Corp. (NASDAQ:ICON), a global shipping company specializing in the transportation of dry bulk cargoes, has announced that its board of directors has approved a 1-for-40 reverse stock split of its issued common shares. The reverse stock split is scheduled to take effect at the start of trading on April 1, 2025. The company, currently valued at $2.89 million, has seen its stock price decline by 97% over the past year, according to InvestingPro data.

The decision for the reverse stock split comes after Icon Energy received a notification from The Nasdaq Stock Market on March 7, 2025, indicating non-compliance with the minimum bid price requirement. The company’s shares had closed below $1.00 for 30 consecutive trading days, currently trading at $0.07. The reverse stock split aims to increase the market price of Icon Energy’s common shares to maintain compliance with Nasdaq’s listing rules. InvestingPro analysis reveals the company operates with significant debt burden and is quickly burning through cash, with a current ratio of 0.63.

As of March 27, 2025, Icon Energy had 87,410,311 outstanding common shares. Post-split, the number of outstanding shares will be approximately 2,185,257, with adjustments made for any fractional shares. Shareholders will not see their ownership percentage change, except for the effects of fractional share cancellations. Those entitled to fractional shares will receive a cash payment instead, based on the closing price of the common shares on March 31, 2025. Despite its challenges, the company maintains a low Price/Book ratio of 0.23, according to InvestingPro, which offers 18 additional investment insights for this stock.

Additionally, the company has reported the successful exercise of 99.99% of the warrants issued in its $12.0 million public offering that closed on January 24, 2025.

Icon Energy’s shareholders had previously granted the board the authority to implement the reverse stock split at the Annual Meeting of Shareholders on March 17, 2025.

This strategic move is part of Icon Energy’s efforts to comply with Nasdaq’s listing standards and to avoid potential delisting. The company is currently in compliance with all other Nasdaq Capital Market continued listing standards.

The information regarding the reverse stock split and corporate updates is based on a press release statement from Icon Energy Corp.

In other recent news, Icon Energy Corp has announced the pricing of its public offering, involving over 9 million units at $1.31 each. The offering includes common shares and warrants, with the latter priced initially at $2.62 each, set to expire three years from issuance. Icon Energy expects to raise approximately $12 million in gross proceeds, which will be directed toward general corporate purposes, including working capital, debt repayment, and fleet expansion. Maxim Group LLC is serving as the sole placement agent for this offering.

Additionally, Icon Energy has expanded its fleet through a new bareboat charter agreement for a 2020-built Ultramax dry bulk carrier. This deal includes an option to purchase the vessel and is complemented by a time charter-out agreement with an unaffiliated operator, ensuring revenue generation during the charter period. These developments align with Icon Energy’s strategic efforts to enhance its operational capabilities and market presence in the maritime freight industry. The financial terms of the fleet expansion agreements have not been disclosed. Investors and stakeholders are likely to watch these developments closely, given their potential impact on Icon Energy’s competitive position and financial performance.

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