New Fortress Energy Board Approves 1-for-50 Reverse Split to Regain Nasdaq Compliance
NFE is trading near its 52-week low of $0.225 (9.5% above the low).
Summary
The board approved a 1-for-50 reverse stock split, with shares expected to trade split-adjusted on September 11. This follows shareholder approval in June and is aimed at regaining Nasdaq's minimum bid price requirement. The split will reduce outstanding shares from 285.6 million to about 5.7 million. The stock fell 4.1% on the news, reflecting ongoing distress from the company's severe liquidity crunch and missed interest payments. The reverse split is a compliance measure, not a fundamental improvement, and the company still faces substantial doubt about its ability to continue as a going concern.
At the time of this announcement, NFE was trading at $0.25 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $70.4M. The 52-week trading range was $0.23 to $3.08. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.