US solar tracker producer FTC Solar will implement a reverse stock split later this week in order to meet the US$1 minimum stock price required to list on the Nasdaq stock exchange.
A reverse stock split is a measure to reduce the amount of outstanding shares in a company and increase the price per share.
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As a result of the split, FTC said every 10 issued and outstanding shares of common stock will be converted into one share. It will reduce the number of common stock shares from approximately 127.7 million to around 12.7 million.
The change will be effective from 5pm Eastern Time on Friday (29th November).
FTC Solar posted declining revenues in its Q3 2024 financial results, down over 66% from the same period in 2023 and 11.3% compared with Q2. This led the company to announce the sale of 17.5 million shares to an unnamed investor for US$15 million. The same results showed quarterly net losses of US$3.9 million.
In July, FTC appointed a new CEO, Yann Brandt, former CCO of FlexGen.
Earlier this month the firm signed a 1GW tracker supply deal with Dunlieh Energy, a US-based renewable energy developer, for a portfolio including a 500MW site in Nebraska.
Fellow US tracker producer Array Technologies posted decreased revenues in its Q3 financial results, though it forecast “solid momentum” for the rest of the year and 2025. Uncertainties around the US election and supply chain disruptions have had an impact on the development of new utility-scale solar projects in the US, which has reverberated into the tracker market.
