BOSTON - Advent Technologies Holdings, Inc. (NASDAQ:ADN), a developer and manufacturer of fuel cell systems, is set to undertake a 1-for-30 reverse stock split of its issued and outstanding common stock. The move, approved by the Board of Directors on April 30, 2024, and by stockholders on April 29, 2024, aims to meet Nasdaq's minimum bid price requirement and attract a wider investor base.
The split is expected to occur on a date yet to be announced by the company's Board, with shares trading on a split-adjusted basis from the opening of trading on Nasdaq. This strategic step follows Advent's compliance plan submission to Nasdaq on April 30, 2024, to file its Annual Report on Form 10-K by May 31, 2024.
Upon completion of the reverse stock split, Advent's outstanding shares will reduce from approximately 77.6 million to about 2.6 million, adjusting for fractional shares, which will not be issued. Instead, shareholders will receive a proportional cash payment. Corresponding adjustments will be made to the company's equity awards and warrants, including conversion or exercise prices.
Advent's common stock and publicly traded warrants will continue trading on the Nasdaq Capital Market under the symbols "ADN" and "ADNWW," respectively, with new CUSIP numbers assigned. Continental Stock Transfer & Trust Company, Advent's transfer agent, will provide stockholders with instructions on the exchange process related to the reverse stock split. Further details are available in Advent's definitive proxy statement filed with the Securities and Exchange Commission on March 29, 2024.
Advent Technologies specializes in high-temperature proton exchange membrane (HT-PEM) fuel cells suitable for various sectors, holding over 150 patents issued, pending, or licensed. The company is headquartered in Boston, Massachusetts, with additional offices globally.
This news release is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ from projected outcomes. Investors are advised to consider these risks and uncertainties carefully.
InvestingPro Insights
As Advent Technologies Holdings, Inc. (NASDAQ:ADN) prepares for its reverse stock split, investors are closely monitoring the company's performance metrics and market sentiment. According to InvestingPro data, ADN is currently grappling with a challenging financial landscape. The company's market capitalization stands at a modest 9.72 million USD, reflecting the small size of the firm in the broader market. Additionally, the company's Price / Book ratio, as of the last twelve months leading up to Q3 2023, is at a low of 0.3, potentially indicating that the stock is undervalued relative to its assets.
However, the financial struggles are apparent, with a significant revenue decline of -39.54% over the same period. This contraction in revenue is further emphasized by a quarterly decrease of -47.31% in Q3 2023, signaling a pressing need for the company to reverse its fortunes. The InvestingPro data also shows a dire gross profit margin of -56.31%, underscoring the cost challenges the company faces.
InvestingPro Tips highlight several critical points for potential investors. Firstly, ADN operates with a significant debt burden, which may be a concern for those looking at the long-term financial health of the company. Secondly, the stock is currently in oversold territory according to the Relative Strength Index (RSI), suggesting that it may be undervalued by the market and could potentially rebound. These insights are particularly relevant as the company approaches its reverse stock split in an effort to meet Nasdaq's minimum bid price requirement and possibly attract a wider investor base.
For those looking to delve deeper into the financial health and future prospects of Advent Technologies, InvestingPro offers additional tips and metrics. There are currently 19 more InvestingPro Tips available for ADN, which can provide a more comprehensive understanding of the company's position and potential investment opportunities. To explore these insights further, visit https://www.investing.com/pro/ADN and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.