Genie Energy Announces Accelerated Redemption of Preferred Stock

Rhea-AI Summary

On October 27, 2022, Genie Energy Ltd. (NYSE: GNE, GNEPRA) announced an accelerated redemption of its Series 2012-A Preferred Stock. The company will redeem 986,400 shares at a price of $8.50 each, totaling approximately $8.3 million, in addition to unpaid accrued dividends, effective November 15, 2022. This redemption significantly exceeds the previous plan of redeeming $1 million per quarter. Post-redemption, 983,358 shares of Preferred Stock will remain outstanding. Further details were filed in a Form 8-K with the SEC.

Positive

• Accelerated redemption of preferred stock reflects strong financial health.
• Redemption amount is significantly higher than previously planned, indicating improved cash flow.

Negative

• None.

NEWARK, N.J., Oct. 27, 2022 /PRNewswire/ -- Genie Energy Ltd., (NYSE: GNE, GNEPRA), ("Genie Energy") a leading retail energy and renewable energy solutions provider, announced that its Board of Directors has approved an accelerated redemption of its Series 2012-A Preferred Stock ("Preferred Stock").

On November 15, 2022, Genie Energy will exercise its right to redeem 986,400 shares of its Preferred Stock for $8.50 per share for an aggregate cost of approximately $8.3 million, together with an amount equal to all dividends accrued and unpaid up to, but not including, the redemption date. This quarter's redemption is significantly higher than the Company's previously announced intention to redeem $1 million per quarter of its Preferred Stock. After this redemption, Genie Energy will have 983,358 shares of Preferred Stock outstanding.

Information about the accelerated redemption was included in a Form 8-K filed with the SEC on October 13, 2022.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise. 

About Genie Energy 
Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a retail energy and renewable energy solutions provider. The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in selected markets in Europe. The Genie Renewables division is a vertically-integrated provider of commercial, community, and utility-scale solar energy solutions. For more information, visit Genie.com.

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SOURCE Genie Energy Ltd.

FAQ

What is the significance of Genie Energy's accelerated redemption of preferred stock?

Genie Energy's accelerated redemption indicates strong financial health and increased cash flow management.

When will Genie Energy redeem its preferred stock?

Genie Energy will redeem its preferred stock on November 15, 2022.

How much will Genie Energy pay for the accelerated redemption of preferred stock?

Genie Energy will pay approximately $8.3 million for the accelerated redemption, at a price of $8.50 per share.

How many shares of preferred stock will remain after the redemption?

After the redemption, Genie Energy will have 983,358 shares of preferred stock outstanding.