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November 26, 2024

FuelCell Energy regains Nasdaq compliance, avoids delisting

HBJ PHOTO | STEVE LASCHEVER This 1.4-MW fuel cell at Trinity College, owned by Danbury-based FuelCell Energy, generates electricity for buildings on the school’s Hartford campus and provides heat for the athletics center.
By Andrew Larson

Danbury-based FuelCell Energy announced Tuesday that it had regained compliance with a Nasdaq listing rule requiring its share price to remain above $1, following a reverse stock split earlier this month.

The fuel cell-maker’s shares were trading at nearly $10 Tuesday morning, after dipping below $1 over the summer.

In June, FuelCell announced its plan to perform a reverse stock split in response to the potential delisting. Stockholders approved the reverse stock split in a special meeting on Oct. 31.

The company’s share price rose to over $11 in early November, then fell to $5.70 on Nov. 12. Since then, it has climbed back up.

FuelCell said in its filing Tuesday that it received a letter from the Nasdaq confirming that it had regained compliance with the minimum bid price requirement.

The one-for-30 reverse stock split gave shareholders one share for every 30 they own, raising the per-share price while keeping the value of their holdings unchanged.

About a third of stockholders who voted in the special meeting were opposed to the reverse stock split. Some cited concerns about stock dilution and raised questions about the company’s management.

FuelCell announced a global structuring on Nov. 15, reducing its workforce by about 17%.

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