WILLISTON, Vt. - iSun, Inc. (NASDAQ: ISUN), a solar energy and clean mobility infrastructure company, has declared a 1-for-20 reverse stock split of its issued Common Stock, set to take place at the opening of markets on Friday, April 26, 2024. The move is aimed at regaining compliance with Nasdaq's minimum bid price requirement.
The decision for the reverse stock split was made following approval from iSun's stockholders at a Special Meeting on February 27, 2024. The company's Board of Directors had the authority to choose a split ratio between 1-for-6 and 1-for-20, and they opted for the maximum consolidation ratio.
This corporate action is intended to boost the company's stock price above the $1.00 minimum bid price mandated by The Nasdaq Capital Market. iSun has a deadline of May 13, 2024, to comply with this requirement and must maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days by this date.
Post-split, iSun's Common Stock will continue trading on The Nasdaq Capital Market under the ticker symbol "ISUN" and will be assigned a new CUSIP number, 465246 205. The reverse stock split will convert every twenty shares of existing Common Stock into one share. This action will uniformly affect all shareholders and will not change any shareholder's percentage ownership in the company, except for adjustments due to rounding of fractional shares.
The total number of authorized shares of Common Stock will remain unchanged, while the shares available for issuance under the company's equity incentive plans and the exercise prices of outstanding options will be proportionately adjusted.
iSun's transfer agent, Continental Stock Transfer and Trust Company, will provide stockholders with transaction statements reflecting their post-split shareholdings. Those holding shares through brokers or other nominees will see their accounts automatically adjusted.
This announcement is based on a press release statement issued by iSun, Inc.
InvestingPro Insights
In light of iSun, Inc.'s recent corporate action to execute a reverse stock split, investors might be seeking deeper insights into the company's financial health and market performance. Here are some key metrics and InvestingPro Tips to consider:
The company's market capitalization stands at a modest $7.06 million, reflecting the challenges it has faced in the market. Additionally, iSun's Price / Book ratio, as of the last twelve months ending Q4 2023, is at 0.55, indicating that the stock may be trading at a low valuation relative to the company's book value. This could be seen as an opportunity for investors considering the company's assets relative to its current market price.
However, with a significant year-to-date price total return of -52.43% as of the given date, iSun's stock performance has been underwhelming. This is further highlighted by a one-year price total return of -77.08%, suggesting a substantial decrease in the stock's value over the past year.
From the perspective of InvestingPro Tips, two critical points stand out:
- iSun operates with a significant debt burden, which might raise concerns about the company's financial stability and its ability to navigate market challenges.
- Moreover, analysts do not anticipate the company will be profitable this year, which could be a red flag for investors looking for short-term gains or signs of a turnaround.
Investors considering iSun as part of their portfolio should also note that there are 16 additional InvestingPro Tips available, which can provide a more comprehensive view of the company's financial situation and market outlook. For those interested in a deeper analysis, using the coupon code PRONEWS24 will grant an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
It's important for shareholders and potential investors to weigh these factors as they assess the impact of the reverse stock split and the company's future prospects.
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