Alternus Clean Energy Inc (NASDAQ:ALCE, OTC:ACLEW) announced that it has received a delisting notice from the Nasdaq Stock Market for not meeting the minimum closing bid price requirement under Nasdaq Listing Rule 5550(a)(2).
In response, the company plans to appeal the decision and file the necessary appeal within the seven-day window allowed under Nasdaq rules.
Alternus intends to take steps to maintain its listing, including a proposed reverse stock split ranging between 1-for-10 and 1-for-50, subject to shareholder approval.
The reverse split plan, outlined in a Definitive Proxy Statement filed with the SEC on September 6, 2024, will be voted on during the upcoming Annual Meeting of Stockholders on September 26, 2024.
The company’s majority shareholder, Alternus Energy Group, has expressed support for the reverse split.
A reverse split impacts the number of shares but does not affect the company's value, Alernus Energy highlighted. Successful execution of this capital restructuring is key to ensuring access to equity as Alternus pursues growth in distributed energy microgrids.
Notably, the company recently announced plans for a joint venture with Hover Energy, with initial wind-powered microgrid installations valued at $3 to $4 million in Honolulu. The joint venture, expected to launch in October, has a project pipeline of nearly 60MW.
"Implementing a reverse split is a necessary step to regain compliance with Nasdaq, but it's important to understand that such action does not change the fundamental value of our company or its day-to-day operations,” Alternus CEO Vincent Browne said in a statement.
“We will continue our ongoing activities to de-lever and improve the balance sheet and also to execute on some of the exciting growth initiatives such as our new joint venture in microgrid solutions.”
The CEO noted that this new segment provides near-term growth opportunities for the company outside of its traditional utility-scale business.
“These projects provide a shorter time to revenue, and subsequent inbound cashflows for the business. With global power demands rapidly increasing, Alternus is well-positioned to meet these needs through both large-scale solar and storage projects plus innovative on-site solutions adding wind and power management,” he said.
“We are confident that our current activities and increasing access to capital will provide a strong foundation for long-term shareholder value. Our next step is to seek the approval of our shareholders for the reverse split, whose support is crucial.”
Alternus Energy develops, installs, owns, and operates utility-scale solar parks in North America and Europe.