Ascent Solar Technologies Announces Reverse Stock Split
Rhea-AI Summary
Ascent Solar Technologies (ASTI) has announced a 1-for-100 reverse stock split of its common stock, effective August 15, 2024. This decision, approved by stockholders on August 7, 2024, aims to meet Nasdaq's continued listing standards, particularly the $1.00 minimum bid price requirement. The reverse split will reduce ASTI's outstanding shares from approximately 102 million to 1.02 million. No fractional shares will be issued, and stockholders with less than 100 shares will receive one share. The split will also apply to outstanding warrants, stock options, and restricted stock units, with proportionate adjustments to exercise prices. Existing stockholders will receive instructions from Computershare regarding the exchange of shares.
Positive
- Potential to meet Nasdaq's continued listing standards
- Expected increase in per share price and bid price above $1.00
- Maintenance of Nasdaq listing may improve investor perception and liquidity
Negative
- Significant reduction in total outstanding shares may impact liquidity
- Risk of not achieving desired share price increase despite the reverse split
- Potential dilution for shareholders with less than 100 shares
Insights
Ascent Solar's 1-for-100 reverse stock split is a strategic move to maintain Nasdaq listing compliance. While it doesn't change the company's market cap, it's important for investor perception and liquidity. The split aims to boost the share price above
Ascent Solar's focus on flexible thin-film photovoltaic (PV) solutions positions them in a niche market with potential growth. Their "featherweight" technology could be advantageous in sectors like aerospace or portable electronics where weight is crucial. However, the need for a reverse split suggests challenges in commercializing this technology at scale. The company's struggle to maintain Nasdaq listing indicates potential cash flow issues or lack of market traction. Investors should assess Ascent's R&D pipeline, patent portfolio and ability to compete with traditional silicon-based PV and emerging perovskite technologies. The reverse split might provide a temporary boost, but long-term success depends on Ascent's ability to innovate and capture market share in the competitive solar industry.
The reverse stock split reflects Ascent Solar's market positioning challenges. While it doesn't directly affect the company's fundamentals, it can impact investor psychology and trading dynamics. Post-split, we might see increased volatility as the stock adjusts to its new price level. The reduced float could lead to wider bid-ask spreads, potentially affecting liquidity. Historically, companies resorting to reverse splits often underperform the market in the long run. However, exceptions exist, especially if accompanied by solid business turnaround strategies. Investors should focus on Ascent's ability to capitalize on the growing demand for flexible solar solutions in niche markets. Key metrics to watch include revenue growth, gross margins and cash burn rate. The success of this move will ultimately depend on Ascent's ability to improve its financial performance and communicate a compelling growth story to the market.
THORNTON, Colo., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Ascent Solar Technologies, Inc. (“Ascent” or the “Company”) (Nasdaq: ASTI), the leading U.S. innovator in the design and manufacturing of featherweight, flexible thin-film photovoltaic (PV) solutions, today announced that effective before market open on August 15, 2024, it will complete a 1-for-100 reverse stock split of its common stock.
At Ascent’s 2024 Annual Stockholders Meeting on August 7, 2024, stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation to affect a reverse stock split with the exact ratio to be set by its Board of Directors. The Board resolved to set the reverse stock split at the ratio of 1-for-100. Ascent filed an amendment to its Certificate of Incorporation with the Secretary of State in Delaware effective August 14, 2024, at 5:00 p.m. Eastern Time. As a result, every hundred issued shares of common stock will automatically be combined into one share of common stock.
As explained in Ascent’s Proxy Statement filed June 20, 2024, the Company believes that affecting the reverse stock split will assist in its efforts to meet the Nasdaq continued listing standards and to continue to have its common stock remain listed and traded on Nasdaq. In particular, Ascent expects the reverse stock split to increase the per share price and bid price of its common stock above the
Shares of the Company’s common stock will be assigned a new CUSIP number (043635804) and are expected to begin trading on a split-adjusted basis on Thursday, August 15, 2024.
The reverse stock split will not change the authorized number of shares of the Company’s common stock. No fractional shares will be issued and any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. Therefore, stockholders with less than 100 shares will receive one share of stock.
The reverse stock split will also apply to Ascent’s common stock issuable upon the exercise of its outstanding warrants, stock options and restricted stock units, with proportionate adjustments to be made to the exercise prices thereof and under the Company’s equity incentive plans.
Once the reverse stock split becomes effective, stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-100 reverse stock split. Existing stockholders holding common stock certificates will receive a letter of transmittal from Ascent's transfer agent, Computershare, with specific instructions regarding the exchange of shares.
Ascent expects to have its issued and outstanding common shares decrease from approximately 102 million pre-split shares to approximately 1.02 million post-split shares outstanding as a result of the reverse stock split.
About Ascent Solar Technologies, Inc.
Backed by 40 years of R&D, 15 years of manufacturing experience, numerous awards, and a comprehensive IP and patent portfolio, Ascent Solar Technologies, Inc. is a leading provider of innovative, high-performance, flexible thin-film solar panels for use in environments where mass, performance, reliability, and resilience matter. Ascent’s photovoltaic (PV) modules have been deployed on space missions, multiple airborne vehicles, agrivoltaic installations, in industrial/commercial construction as well as an extensive range of consumer goods, revolutionizing the use cases and environments for solar power. Ascent Solar’s research and development center and 5-MW nameplate production facility is in Thornton, Colorado. To learn more, visit https://www.ascentsolar.com
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" including statements about the financing transaction, our business strategy, and the potential uses of the proceeds from the transaction. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. We have based these forward-looking statements on our current assumptions, expectations, and projections about future events. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “will,” "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. No information in this press release should be construed as any indication whatsoever of our future revenues, stock price, or results of operations. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's filings with the Securities and Exchange Commission including those discussed under the heading “Risk Factors” in our most recently filed reports on Forms 10-K and 10-Q.
Media Contact
Spencer Herrmann
FischTank PR
ascent@fischtankpr.com
FAQ
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