Alternus Clean Energy said its 1-for-2,500 reverse stock split became effective at 12:01 a.m. Eastern Time on August 20, combining every 2,500 shares of common stock into one share.
1-for-2,500 Reverse Stock Split: Demand, Investment and Hiring Signals
Alternus Clean Energy said its common shares were expected to begin trading on the OTC Markets on a post-split basis at the market open on August 20, subject to confirmation by the Depository Trust Company and FINRA. Shares will trade under the temporary symbol ALCED for 20 trading days before changing to ADIS.
Reverse Stock Split Reduces Outstanding Share Count
The 1-for-2,500 reverse stock split reduces outstanding common shares to about 290 from about 724,658, while leaving the number of authorized common shares and the $0.0001 par value unchanged. The company has been assigned a new CUSIP number, 02157G 408.
No fractional shares will be issued. Stockholders otherwise entitled to a fractional share will receive cash equal to their fractional interest multiplied by the OTC Markets closing price on the trading day immediately before the split took effect.
Alternus Clean Energy said the action was approved by its board and by the holder of a majority of its outstanding voting capital stock through written consent. The company said the split is intended to raise its per-share trading price to meet a minimum bid requirement for a national exchange listing and broaden its institutional and long-term investor base.
Chief Executive Vincent Browne said a national exchange relisting would allow the company to complete a committed $10 million PIPE investment. The company also cited progress at EverOn Energy LLC, its 51%-owned joint venture with Hover Energy LLC, which focuses on wind-powered microgrids.
