FORT MILL, South Carolina - Alternus Clean Energy Inc. (NASDAQ: ALCE), a clean energy independent power producer, has been notified by the Nasdaq Stock Market of a pending delisting due to non-compliance with the minimum bid price requirement. The company announced its intention to appeal the decision and is considering a reverse stock split to regain compliance.
The Nasdaq Listing Qualifications Department issued the Delisting Notice after Alternus failed to meet the minimum closing bid price criterion. In response, Alternus plans to file an appeal within the allowed seven-day period. The company's strategy to maintain its listing includes a potential reverse stock split, subject to shareholder approval, at a ratio between 1-for-10 and 1-for-50, to be determined by the Board of Directors.
This plan was detailed in a Definitive Proxy Statement filed with the Securities and Exchange Commission on September 6, 2024, in preparation for the Annual Meeting of Stockholders scheduled for September 26, 2024. Alternus Energy Group, PLC, the majority shareholder, has indicated support for the reverse split.
A reverse stock split reduces the number of shares in circulation without altering the company's market value. Alternus is pursuing this measure to ensure continued access to equity markets, which is crucial for its growth initiatives, particularly in distributed energy microgrids.
Alternus has recently announced a joint venture with Hover Energy, LLC, securing initial orders in Honolulu for Wind-Powered Microgrid™ installations valued between $3-$4 million. The joint venture, expected to be formalized in October, boasts nearly 60MW of project pipeline.
Vincent Browne, CEO of Alternus, emphasized that the reverse split is a compliance measure and does not affect the company's fundamental value or operations. He highlighted ongoing efforts to improve the balance sheet and the company's focus on growth initiatives, including the new joint venture.
Alternus, headquartered in the United States, operates utility-scale solar parks in North America and Europe. With a goal to reach 3GW of operating projects within five years, the company is positioning itself to meet the increasing global power demands through solar and storage projects and on-site wind and power management solutions.
The information in this article is based on a press release statement from Alternus Clean Energy Inc.
In other recent news, Alternus Clean Energy has seen significant developments in its operations. The company recently terminated its agreement to acquire an 80MWp portfolio of solar installations across eight U.S. states from C2 Taiyo Fund I, LLP due to the seller's failure to meet necessary closing conditions. Despite this, Alternus continues to focus on organic development and strategic acquisitions, including a recent joint venture with Hover Energy.
Alternus Clean Energy has also announced the expansion of its Hawaii projects, which include three new Wind-Powered Microgrid™ projects in partnership with Hover Energy LLC and Hawaii Construction & Development Consulting. These projects are expected to begin installation in Q4 2024 and are valued between $3-$4 million. Furthermore, Alternus has secured an extension of the waiver of certain financial covenants related to its green bonds until August 30, 2024.
The company has also announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million, expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million. These are recent developments in the operations of Alternus Clean Energy.
InvestingPro Insights
Alternus Clean Energy Inc. (NASDAQ: ALCE) has been facing challenges on the market front, with the company's stock price experiencing a significant downturn over the past year. According to real-time data from InvestingPro, Alternus has seen a one-year price total return of -98.31%, with a year-to-date (YTD) return of -88.13%. This downward trend is also reflected in shorter time frames, with a one-month price total return of -29.28% and a three-month return of -52.53%.
InvestingPro Tips indicate that Alternus stock trades with low price volatility, suggesting that while the shares have declined, the movements have not been erratic. This could be an important consideration for investors who are wary of unstable stock performance. Additionally, the company has been profitable over the last twelve months, a positive sign amidst the price declines. However, the stock price often moves in the opposite direction of the market, which could indicate that Alternus is not following the general market trends and may be influenced by company-specific or industry-specific factors.
Despite the market challenges, Alternus has maintained a stronger liquidity position. InvestingPro Tips highlight that the company's liquid assets exceed its short-term obligations, which could provide some reassurance to investors concerned about the company's immediate financial health. For those interested in diving deeper into Alternus's financial metrics and seeking additional insights, InvestingPro offers a host of tips, with seven more tips available at https://www.investing.com/pro/ALCE.
The company's current market activities, including the proposed reverse stock split and the joint venture with Hover Energy, are strategic efforts to stabilize and grow its market presence. As Alternus navigates through these initiatives, investors and stakeholders will be watching closely to see how these moves impact the company's compliance with Nasdaq's requirements and its overall market performance.
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