Pineapple Energy Inc. (NASDAQ:PEGY), a company specializing in telephone and telegraph apparatus, announced a significant change in its stock structure with a fifteen-for-one reverse stock split effective Monday, June 12, 2024. This strategic move automatically combined every 15 shares of issued and outstanding common stock into one share, without altering the par value per share.
The adjustment came into effect at the start of trading on the effective date and was accompanied by a proportional reduction in the total number of authorized shares to 7,500,000. The reverse stock split also resulted in the cash settlement of fractional shares that would have otherwise been outstanding post-split.
Concurrently, the reverse stock split impacted the company’s equity compensation plans, with a corresponding decrease in the number of shares available for issuance under these plans. Additionally, the number of shares of common stock that could be issued upon the exercise or vesting of equity awards was proportionally reduced, while the exercise price or share-based performance criteria, if applicable, saw a proportional increase.
The new CUSIP identifier for Pineapple Energy's common stock following the reverse stock split is 72303P107. The company, headquartered in Minnetonka, MN, has also made amendments to its Fourth Amended and Restated Articles of Incorporation to reflect these changes.
This reorganization comes as Pineapple Energy aims to adjust its capital structure. The details of these amendments are outlined in the company's recent SEC filing. The full text of the Articles of Amendment, effective as of June 12, 2024, can be found attached to the filing as Exhibit 3.1.
In other recent news, Pineapple Energy reported its Q1 2024 results, noting a decrease in both revenue and gross profit compared to the same period last year. Despite these challenges, the company managed to significantly increase its net income from continuing operations by 146%, totaling $1.2 million.
In light of recent developments, Pineapple Energy expressed a strong commitment to achieving profitability in the upcoming quarters, starting in Q2 2024. The company is actively pursuing growth strategies, including acquisitions of local and regional rooftop solar companies.
Pineapple Energy also highlighted a decline in residential kilowatts installed and delays in commercial pipeline projects, which contributed to the decrease in revenue. However, the company remains optimistic due to the strong demand for solar and battery storage.
In order to support its capital needs for the remainder of the year, Pineapple Energy is actively fundraising. The firm's cash and equivalents totaled $3.3 million, including $1.5 million in restricted cash and investments.
While the company reported its first negative EBITDA quarter, it is working on improving its marketing strategies and customer incentives, especially in Long Island, to drive better results in the future.
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