FuelCell Slides After Reverse Split Helps Avoid Delistingby
Company converted 12 shares to one when market closed Thursday
FuelCell Energy hasn't reported annual income since 1997
FuelCell Energy Inc. fell the most in almost two years after completing a reverse split that converted 12 shares into one.
FuelCell declined 18 percent to $8.05 at the close in New York, the most since Dec. 17, 2013. The company has lost more than half its value this year.
The reverse split will help the maker of fuel-cell power plants remain listed on the Nasdaq stock exchange. The company was warned Aug. 12 that because its share price had closed below $1 for 30 consecutive days it wasn’t in compliance with exchange rules and faced delisting. FuelCell, based in Danbury, Connecticut, needed to close at or above $1 for 10 consecutive days by Feb. 8 to regain compliance.
FuelCell hasn’t reported annual income since 1997. Last month the company began expanding its factory with help from the state of Connecticut , part of a plan to reduce costs as it seeks to become profitable. The company is selling about 70 megawatts of systems a year now and Chief Executive Officer Chip Bottone said the company will reverse losses when that figure exceeds 90 megawatts a year.
There are now 26.2 million shares outstanding, according to a statement after the close of regular trading Thursday. Fuel Cell shareholders approved the reverse split in April.