Energy Focus, Inc. announced that the Company effected a 1-for-7 reverse stock split of its common stock after the close of trading on The Nasdaq Capital Market on June 16, 2023. The Company’s common stock is expected to begin trading on a split-adjusted basis on The Nasdaq Capital Market at the market open on June 20, 2023.
The reverse stock split is intended to increase the per share trading price of the Company’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. Energy Focus previously received a notice of delisting related to its non-compliance with Nasdaq continued listing requirements, including the minimum $1.00 bid price requirement and the minimum $2.5 million stockholders’ equity requirement. On May 1, 2023, the Nasdaq Hearings Panel granted the Company’s request to continue the Company’s listing on The Nasdaq Capital Market, subject to the conditions that: (1) on or before May 15, 2023, the Company files with the SEC its quarterly report for the three months ended March 31, 2023 demonstrating compliance with the minimum $2.5 million stockholders equity requirement as of March 31, 2023 and (2) on or before July 7, 2023, the Company shall demonstrate compliance with the minimum $1.00 bid price requirement.
The reverse stock split was approved by the Company’s stockholders at the Company’s Annual Meeting of Stockholders held on June 15, 2023 to be affected at the Board’s discretion within approved parameters. The specific ratio was subsequently approved by the Company’s Board on June 15, 2023. As a result of the reverse stock split, every seven pre-split shares of common stock outstanding will become one share of common stock. The reverse stock split reduces the number of shares of the Company’s outstanding common stock from approximately 19.2 million shares to approximately 2.7 million shares, subject to adjustment due to the payment of cash in lieu of fractional shares. The reverse stock split also applies to common stock issuable upon the exercise of the Company’s outstanding warrants and stock options.
No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares will receive a cash payment in lieu of such fractional shares. Stockholders of record will be receiving information from Broadridge Corporate Issuer Solutions, Inc., the Company’s transfer agent, regarding their stock ownership post-split. All other questions can be directed to Broadridge Corporate Issuer Solutions, Inc. at 1-877-830-4936.
Additional information about the reverse stock split will be available in the Company’s Current Report on Form 8-K, which it expects to file with the Securities and Exchange Commission (SEC) on or about June 22, 2023. A copy of the report will be also available in the Investor Relations section of the Company’s website at www.energyfocus.com.
The trading symbol for the Company’s common stock will remain “EFOI.” The new CUSIP number for the Company’s common stock following the reverse stock split will be 29268T508.
There can be no assurance that the Company will be able to maintain compliance with the minimum stockholders’ equity requirement or regain compliance with the minimum $1.00 bid price requirement or maintain compliance with other Nasdaq listing requirements. If the Company fails to regain compliance with Nasdaq’s continued listing standards in accordance with the Hearing Panel’s conditions, the Company’s common stock will be subject to delisting from The Nasdaq Capital Market.
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