Business
Energy Focus Announces 1-for-7 Reverse Stock Split
--News Direct--Energy Focus, Inc. (Nasdaq: EFOI), a leader in sustainable, energy-efficient lighting and control systems products for the commercial, military
About this update from Energy Focus, Inc.
[{"type":"text","content":"--News Direct--Energy Focus, Inc. (Nasdaq: EFOI), a leader in sustainable, energy-efficient lighting and control systems products for the commercial, military maritime and consumer markets, today announced that the Company will effect 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 spli...