FuelCell Energy sinks on plans to ask for reverse stock split

FuelCell Energy (NASDAQ:FCEL) -6.1% in early trading Tuesday after saying it plans a special meeting of shareholders on October 31 to vote on a proposal to authorize the company’s board to effect a reverse stock split.

FuelCell (FCEL) did not disclose the size of its planned reverse split and did not discuss a reason it wants the reverse split, but the stock has not closed above the Nasdaq’s $1 minimum-bid listing threshold since April 15.

The company has enacted two reverse splits in the past, a 1-for-12 reverse split in May 2019 and a 1-for-12 reverse split in December 2015.

In its latest quarter, FuelCell (FCEL) reported a slightly smaller than expected $37.6M net loss on revenues of $22.4M, down 41% from a year earlier, while unrestricted cash and cash equivalents fell to $158.8M from $250M on October 31, 2023.