SunPower’s board of directors has authorised a proposal to reclassify all outstanding shares of the company's Class A and B common stock into a single class on a one-for-one basis. The board will also recommend that shareholders approve the reclassification proposal, which requires a majority of the Class A and B common stockholders voting as a single class, and the same from the Class B common stockholders as a separate class.
The new common stock will have the same voting powers, preferences, rights and qualifications, limitations and restrictions as the current SunPower Class A common stock. Total Gas & Power USA, SAS, which currently holds a majority of SunPower's outstanding Class A common stock and a majority of its outstanding Class B common stock, has agreed in the Tender Offer Agreement with SunPower to vote all the shares acquired in the tender offer in favour of the reclassification.
The board of directors has established a record date of September 19 and scheduled a meeting of shareholders for November 15, subject to completion of the Securities and Exchange Commission review process.
SunPower’s stock reclassification decision comes just a month after the company posted a disappointing set of Q2 financials, with a quarterly revenue rise being offset by a significant increase in net losses and margins shrinking.