FTC Solar Announces Reverse Stock Split

Rhea-AI Summary

FTC Solar announced a 1-for-10 reverse stock split effective November 29, 2024, to meet Nasdaq Capital Market's minimum $1.00 bid price requirement. The split will affect all stockholders uniformly, reducing outstanding shares from approximately 127.7 million to 12.7 million. Trading under symbol FTCI will continue on Nasdaq, with split-adjusted trading beginning December 2, 2024. The split won't affect authorized shares or par value, but will proportionally adjust exercise prices and terms of outstanding stock options, restricted stock units, and equity awards.

Positive

• None.

Negative

• Implementation of reverse stock split indicates struggle to maintain Nasdaq listing requirements
• Stock price has fallen below $1.00 minimum bid requirement
• Potential negative market perception of reverse splits as indication of financial distress

Insights

Financial Analyst

The 1-for-10 reverse stock split is a critical defensive move aimed at maintaining FTCI's Nasdaq listing by boosting the share price above the $1.00 minimum requirement. With the current market cap of just $47.9M, this technical adjustment reduces outstanding shares from ~127.8M to ~12.8M but doesn't fundamentally change the company's market value or financial position.

While reverse splits often carry negative market perception as they're typically implemented by struggling companies, this move is essential for maintaining institutional investor access through continued Nasdaq listing. However, the very need for this action signals underlying business challenges and concerning market performance. The key focus should now be on whether the company can demonstrate operational improvements to support the adjusted share price.

AUSTIN, Texas, Nov. 27, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI) (“FTC Solar”), a leading provider of solar tracker systems, today announced that it will implement a reverse stock split of its issued and outstanding Common Stock at a ratio of 1-for-10, effective at 5:00 PM Eastern Time on November 29, 2024, to satisfy the Nasdaq Capital Market’s minimum $1.00 bid price per share requirement. The reverse stock split will be effected simultaneously for all outstanding shares of the Company’s Common Stock and will affect all of the Company’s stockholders uniformly.

FTC Solar’s Common Stock will continue to trade on the Nasdaq Capital Market under the Company’s existing trading symbol “FTCI” and will begin trading on a split-adjusted basis at the commencement of trading on December 2, 2024. The new CUSIP number for the common stock following the reverse split will be: 30320C 301.

The Company’s stockholders previously approved the reverse stock split and granted the Company’s board of directors the authority to determine the final reverse stock split ratio and the split effective time. The Company has filed an amendment to its Amended and Restated Certificate of Incorporation to effect the reverse stock split at the ratio of 1-for-10, effective at 5:00 PM Eastern Time on November 29, 2024.

As a result of the reverse split, every 10 issued and outstanding shares of Common Stock will automatically be converted into one share of Common Stock. The reverse stock split will reduce the number of shares of the Company’s Common Stock outstanding from approximately 127,767,183 shares to approximately 12,776,718 shares. The foregoing share amounts do not take into account any additional shares that may be issuable in connection with the treatment of fractional shares resulting from the reverse stock split. The reverse stock split will not affect the number of authorized shares of the Company’s Common Stock or the par value of a share of Common Stock. Proportionate adjustments will be made to the per share exercise price, conversion price, the number of shares issuable upon the exercise or conversion, and other applicable terms of all outstanding stock options, restricted stock units and other equity awards, as applicable.

About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a leading provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.

FTC Solar Contact:
Bill Michalek 
Vice President, Investor Relations 
FTC Solar
T: (737) 241-8618 
E: IR@FTCSolar.com

Forward-Looking Statements 
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.  In addition, this press release contains statements about third parties and their commercial activity.  We have not independently verified or confirmed such statements and have instead relied on the veracity of information as provided to us by such third parties related to such statements.  You should not rely on our forward-looking statements or statements related to third parties or their commercial activities as predictions of future events, as actual results may differ materially from those in the forward-looking statements or statements related to third parties or their commercial activities because of several factors, including those described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the section entitled “Risk Factors” contained therein. FTC Solar undertakes no duty or obligation to update any forward-looking statements or statements related to third parties or their commercial activities contained in this release as a result of new information, future events or changes in its expectations, except as required by law. 

FAQ

What is the reverse stock split ratio announced by FTC Solar (FTCI)?

FTC Solar announced a 1-for-10 reverse stock split, effective November 29, 2024.

When will FTCI begin trading on a split-adjusted basis?

FTCI will begin trading on a split-adjusted basis on December 2, 2024.

How many shares will FTCI have outstanding after the reverse split?

After the reverse split, FTCI will have approximately 12.7 million shares outstanding, reduced from 127.7 million shares.

Why is FTC Solar (FTCI) implementing a reverse stock split?

FTC Solar is implementing the reverse split to satisfy Nasdaq Capital Market's minimum $1.00 bid price per share requirement.