Reverse Stock Split Planned: Fuelcell Energy Announces Extraordinary Shareholders' Meeting

Danbury, USA - The US fuel cell specialist Fuelcell Energy is planning a reverse stock split. The company announced yesterday (August 20, 2024) that a proposal will be voted on at a special meeting of shareholders on October 31, 2024 to authorize Fuelcell's Board of Directors to effect a reverse stock split of its common stock.

Holders of the Company's common stock of record at the close of business on September 10, 2024 are entitled to receive notice of and to vote at the special meeting. Details of the special meeting will be provided to stockholders at a later date in a proxy statement to be filed by the Company with the Securities and Exchange Commission.

In a reverse stock split, the number of shares is reduced without changing the value of the company. Investors hold fewer shares after a reverse stock split, but the value per share is higher (optically higher market value) without any arithmetical change in the investment volume.

Following the announcement, Fuelcell shares plummeted by 17.8% to EUR 0.37 in yesterday’s trading (20.08.2024).

Source: IWR Online, 21 Aug 2024