BRISBANE, Australia - Tritium DCFC Limited (NASDAQ: DCFC), a developer and manufacturer of direct current fast chargers for electric vehicles, has confirmed that its reverse stock split will take effect on April 2, 2024. The decision comes after a shareholder meeting held on March 22, where a resolution was passed to consolidate company shares at a ratio of 200-to-1.
The Brisbane-based company, established in 2001, specializes in creating advanced and reliable DC fast chargers for EVs, with a focus on continuous innovation. Tritium's chargers are known for their compact and robust design, engineered to be easy to install and use.
The reverse stock split is a strategic move by Tritium and is part of the company's broader efforts to manage its share structure. Reverse stock splits are often used by companies to boost the price of their shares by reducing the number of shares outstanding, which can make the stock more attractive to investors.
The consolidation will see every two hundred ordinary shares of Tritium transformed into one share. This move is subject to the completion of listing exchange procedures, with the effective date set as the beginning of April.
This news is based on a press release statement from Tritium DCFC Limited.
InvestingPro Insights
In light of Tritium DCFC Limited's recent announcement of a reverse stock split, a review of real-time data and InvestingPro Tips reveals a challenging financial landscape for the company. With a market capitalization of just 9.26 million USD, Tritium is operating under a significant debt burden, which is reflected in a negative P/E ratio of -0.08 for the last twelve months as of Q4 2023. This indicates that the market has concerns about the company's profitability.
InvestingPro Tips suggest that Tritium may struggle with making interest payments on its debt and does not expect to be profitable this year. This is consistent with the company's negative gross profit margin of -2.21% and an operating income margin of -53.71% over the same period. The stock has also experienced high price volatility, with a 52-week low price percentage of 3.68% and has seen a significant hit, with a one-year price total return of -94.91%.
InvestingPro offers additional insights into Tritium's financial health, with a total of 17 tips available for investors seeking a deeper analysis. For those looking to explore these metrics further, InvestingPro encourages using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Revenue data, however, provides a silver lining with a substantial increase, showing a growth of 115.03% over the last twelve months as of Q4 2023. This suggests that while Tritium is facing financial headwinds, there is potential for growth in the current year, which could be a factor for investors to consider when evaluating the company's future prospects.
Investors are encouraged to stay informed on Tritium's performance and future outlook by visiting https://www.investing.com/pro/DCFC, where they can find comprehensive analyses and up-to-date financial data.
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