Alternus Clean Energy, Inc. (NASDAQ:ALCE), a company operating in the electric services sector, announced several significant corporate changes following a special meeting of shareholders. The company, previously known as Clean Earth Acquisitions Corp., disclosed these updates in a recent 8-K filing with the U.S. Securities and Exchange Commission.
At the special meeting held on Thursday, shareholders approved a series of amendments to the company's Articles of Incorporation and Equity Incentive Plan. These approvals included an increase in the authorized shares of common stock from 150 million to 300 million shares. This change, effective Monday, is anticipated to provide Alternus with greater flexibility for future corporate needs.
Additionally, the company's stockholders elected John McQuillan as a Class I director, with his term set to expire in 2027. McQuillan's appointment is part of the company's ongoing efforts to strengthen its leadership team.
Shareholders also endorsed the expansion of the company's 2023 Equity Incentive Plan. The plan's amendment increases the available shares for grants from 8 million to 28 million. This move is aimed at ensuring that Alternus can continue to attract and retain top talent through equity-based compensation.
Furthermore, the shareholders ratified the appointment of Forvis Mazars, LLP as the company's independent auditor for the fiscal year ending December 31, 2024, demonstrating confidence in the firm's ability to oversee Alternus's financial reporting.
In other recent news, Alternus Clean Energy Inc. faces a potential Nasdaq delisting due to non-compliance with the minimum bid price requirement. The company plans to appeal this decision and is contemplating a reverse stock split to regain compliance. This strategy, which includes a potential reverse stock split at a ratio between 1-for-10 and 1-for-50, was outlined in a Definitive Proxy Statement filed with the Securities and Exchange Commission.
Alternus Clean Energy has recently terminated its agreement to acquire an 80MWp portfolio of solar installations from C2 Taiyo Fund I, LLP due to unmet closing conditions. Despite this setback, the company continues to focus on organic growth and strategic acquisitions, including a recent joint venture with Hover Energy. This joint venture is set to formalize in October and already boasts nearly 60MW of project pipeline.
In addition, Alternus Clean Energy has expanded its Hawaii projects through a partnership with Hover Energy LLC and Hawaii Construction & Development Consulting. These projects, valued between $3-$4 million, are expected to commence installation in Q4 2024. 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. This acquisition is expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million.
InvestingPro Insights
Recent InvestingPro data reveals that Alternus Clean Energy (NASDAQ:ALCE) has experienced significant price volatility, with a 1-year price total return of -98.49% as of the latest available data. This aligns with the InvestingPro Tip indicating that the stock price has fallen significantly over the last year. Despite this challenging performance, another InvestingPro Tip notes that the company remains profitable over the last twelve months, suggesting resilience in its core operations.
The recent corporate changes, including the increase in authorized shares and expansion of the equity incentive plan, may be strategies to address the company's financial position. An InvestingPro Tip highlights that ALCE's liquid assets exceed short-term obligations, which could provide some financial flexibility as the company navigates its current challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for ALCE, providing deeper insights into the company's financial health and market position.
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