In a bid to keep its Nasdaq listing, Danbury’s FuelCell Energy reverse split its stock late last week, which so far has resulted in a price slide.
The fuel cell manufacturer’s one-for-12 reverse split of its common stock took effect when the market opened Friday. The market responded by trading down FuelCell shares by 18 percent that day, according to Bloomberg.
Shares were trading around $7 Tuesday morning on the Nasdaq Global Market.
Shareholders gave the board of directors approval in April to enact a reverse split.
FuelCell received a warning from Nasdaq in August that its share price had closed below $1 for 30 consecutive business days, and that it could face delisting if its share price didn’t rise by February.
The company now has 39.6 million shares of common stock, down from 475 million before the reverse split.
Fuel cell manufacturers, including FuelCell energy, have thus far been unable to operate in the black. FuelCell has recorded an average annual loss of nearly $37 million over the past three years.
Through three quarters of 2015, the company was down $20.5 million, an improvement over a $33.4 million loss in the same nine months of 2014.
The company plans to report its fourth quarter results next week.
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