Stem Launches Strategic Alternatives Review, Hires Guggenheim, as Shares Sit Near 52-Week Low
STEM is trading near its 52-week low of $2.96 (0.3% above the low).
Summary
Stem's board opened a formal review of strategic alternatives, hiring Guggenheim Securities as financial advisor and Gibson Dunn and Davis Polk as legal counsel. The board will weigh the standalone plan, asset sales, a sale of the company, a merger, refinancing or recapitalization. No timetable is set and the company says it won't disclose further developments unless it approves a specific transaction. The timing matters: this lands three days after the October 20 NYSE notice that Stem fails the continued-listing standard on average share price, and after Q2 revenue fell 12% year-over-year to $33.7 million. A sale or recapitalization is now explicitly on the table for a company trading near its 52-week low. Q3 results are due after the close on November 5, with a call at 5:00 p.m. Eastern.
At the time of this announcement, STEM was trading at $2.97 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $29M. The 52-week trading range was $2.96 to $25.18. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.