Perimeter Solutions, Inc. (NYSE:PRM), previously known as Perimeter Solutions, SA, has officially completed its redomiciliation from Luxembourg to the State of Delaware, as announced today. The chemical products company has transitioned into a Delaware corporation, which has resulted in the automatic conversion of its ordinary and preferred shares into common and preferred stock, respectively.
The company's shares of common stock will continue to trade on the New York Stock Exchange (NYSE) under the ticker symbol "PRM", the same symbol used by its Luxembourg ordinary shares prior to the transaction. The NYSE is expected to suspend trading of the Luxembourg ordinary shares before the market opens on Thursday and commence trading of the common stock the same day.
In connection with the redomiciliation, Perimeter Solutions has entered into indemnification agreements with its executive officers and directors, providing them contractual rights to indemnification and expense advancement and reimbursement, in line with Delaware General Corporation Law (DGCL).
As part of the transition, the rights of the security holders are now governed by the company's Certificate of Incorporation, its bylaws, and the DGCL, which differ from the rights under Luxembourg law. Shareholders approved the redomiciliation, the adoption of the Certificate of Incorporation, and the delegation of authority to complete the transaction during a special meeting held on Wednesday.
The CUSIP number for the company's common stock has changed to 71385M 107 following the redomiciliation. Perimeter Solutions has also filed its Certificate of Incorporation and adopted its bylaws, marking the formal change in its corporate governance structure.
In other recent news, Perimeter Solutions reported substantial growth in Q3 2024, with a 113% increase in Fire Safety revenue to $251.8 million and a 97% year-to-date increase to $375.5 million. The company's adjusted EBITDA for the Fire Safety segment also experienced a significant rise, with an increase of 181% to $157.5 million in Q3 and a year-to-date increase of 208% to $212.9 million. This robust performance is a result of the company's strategic focus on operational value drivers, including profitable new business, productivity improvements, and value-based pricing.
InvestingPro Insights
Perimeter Solutions' recent redomiciliation to Delaware comes at a time of significant growth for the company. According to InvestingPro data, PRM has experienced impressive revenue growth, with a 75.76% increase over the last twelve months as of Q3 2024, and an even more striking 102.17% quarterly growth in Q3 2024. This robust growth trajectory aligns with the company's strategic moves, including the redomiciliation, which may be aimed at positioning the company for further expansion.
Despite the strong revenue growth, it's worth noting that Perimeter Solutions is not currently profitable, with an operating income margin of -13.85% over the last twelve months. However, InvestingPro Tips suggest that analysts anticipate sales growth in the current year and predict the company will be profitable this year, indicating potential improvements in financial performance.
The market seems to be optimistic about PRM's prospects, with the stock showing a significant 222.87% price return over the past year and trading near its 52-week high. This positive sentiment could be related to the company's strategic decisions, including the redomiciliation, which may be viewed as steps towards enhancing shareholder value.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for PRM, providing deeper insights into the company's financial health and market position.
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