Plug Power gets shareholder OK for reverse stock split
LATHAM Hoping to avoid delisting from NASDAQ, Plug Power stockholders gave the company permission this weekend to perform a reverse stock split.
If the Latham fuel cell manufacturer does effect the split, it will reduce the number of shares each stockholder has, creating a proportional increase in the share price. New shares would be issued for every 10 to 25 old shares.
The move could help stave off the looming threat of delisting from the NASDAQ, which would severely limit the company’s ability to raise capital. The company was first notified last fall that it had fallen out of compliance with NASDAQ rules after the bid price of its common stock closed below the required minimum $1 per share for 30 consecutive business days.
In April, Plug Power received another six months to regain compliance — which means its common stock would have to close at $1 per share or more for at least 10 consecutive business days. If this doesn’t happen by October, Plug Power’s securities will be subject to delisting.
It can appeal delisting to a NASDAQ hearing panel, which would make a decision based on the company’s plan to regain compliance.
At its annual meeting last weekend, Plug Power stockholders voted to allow, but not require, the company’s board of directors to effect the reverse stock split, according to a filing made this week with the U.S. Securities and Exchange Commission.