MINNETONKA - Pineapple Energy Inc. (NASDAQ:PEGY), a company specializing in solar and energy storage solutions, announced today a 1-for-15 reverse stock split of its common stock, effective from the beginning of trading on June 12, 2024. This corporate action is aimed at lifting the company's share price to meet Nasdaq's minimum bid price requirement for continued listing.
The reverse stock split will consolidate every 15 shares of existing common stock into one share, without altering the par value per share. The adjustment will proportionally reduce the number of authorized common shares from 112.5 million to 7.5 million. Pineapple Energy's ticker symbol on the Nasdaq will remain unchanged.
As a result of the reverse split, the conversion and exercise prices of the company’s outstanding stock purchase warrants, stock options, and the number of shares issued under the equity incentive plans will be proportionately adjusted. No fractional shares will be issued; shareholders who would receive a fraction of a share will be compensated in cash instead.
The move is part of the company's strategy to comply with the Nasdaq Capital Market's listing standards. Pineapple Energy has indicated that it will continue to take additional measures to satisfy the exchange's requirements.
All shareholders will be affected uniformly by the reverse stock split. Shareholders who hold their shares in certificate form will be contacted by EQ Shareowner Services, the company's transfer agent, with instructions on how to exchange their shares. Shareholders with further questions can reach out to the transfer agent directly.
This announcement is based on a press release statement from Pineapple Energy Inc.
In other recent news, Pineapple Energy disclosed its Q1 2024 financial results, showing a decrease in revenue and gross profit compared to the same period last year. Still, the company reported a significant 146% increase in net income from continuing operations, amounting to $1.2 million. Despite a reduction in residential kilowatts installed and delays in commercial pipeline projects, Pineapple Energy remains committed to achieving profitability by the second quarter of 2024.
The company is actively seeking growth through the acquisition of local and regional rooftop solar companies, in response to strong demand for solar and battery storage solutions. To support its capital needs for the rest of the year, Pineapple Energy is also actively fundraising. These are some of the recent developments within the company.
Furthermore, in a Q&A session, the importance of battery attachments to solar panels for a distributed grid was discussed, with a shift towards battery attachments in California due to NEM 3 system economics noted. In Hawaii, the attach rate for batteries is nearly 100% because of favorable export tariffs. Pineapple Energy is also working on improving its marketing strategies and customer incentives, especially in Long Island.
InvestingPro Insights
Pineapple Energy Inc. (NASDAQ:PEGY) has recently taken a bold step with its 1-for-15 reverse stock split, which underscores the company's effort to maintain its listing on the Nasdaq. In light of this development, it's crucial for investors to consider the financial health and market performance of the company. Here are some key insights based on real-time data from InvestingPro:
InvestingPro Data:
- Market Cap (Adjusted): 16M USD
- Revenue Growth (Quarterly) for Q1 2024: -40.09 %
- 1 Week Price Total Return as of mid-2024: -24.53 %
The recent revenue contraction and the sharp decline in the stock's price over the last week highlight the challenges Pineapple Energy is facing. Despite a significant increase in revenue over the last twelve months, the company's quarterly figures show a downturn, which may concern investors about its near-term prospects.
InvestingPro Tips suggest that Pineapple Energy is rapidly depleting its cash reserves and may struggle to meet short-term obligations, as its liquid assets are currently exceeded by its short-term liabilities. Additionally, the company's stock has experienced substantial volatility, with a notable decline over the past six months, which is consistent with the recent price total return metrics.
For investors seeking a more comprehensive analysis and additional insights, there are more InvestingPro Tips available that could guide investment decisions regarding Pineapple Energy. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, which includes a total of 16 InvestingPro Tips for Pineapple Energy Inc. These tips could provide valuable context for the company's financial position and stock performance, especially in the wake of the reverse stock split.
The company's decision to adjust its capital structure through a reverse stock split is a strategic move that may impact investor perception. With the insights provided by InvestingPro, shareholders and potential investors can better understand the implications of this action on the company's future.
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