Pineapple Energy Inc. (PEGY) shares are experiencing a significant decline on Tuesday following the company’s announcement of a 1-for-50 reverse stock split. The move, aimed at boosting the share price and regaining compliance with Nasdaq listing requirements, has sent investors scrambling for answers. This article delves into the details of the reverse split, explores the potential impact on PEGY’s stock, and offers insights into how investors can navigate this turbulent market.
Pineapple Energy (PEGY) has announced plans to regain compliance with Nasdaq’s listing requirements by July 24, 2024. The company’s shares have been trading below $0.10, violating the exchange’s minimum bid rule. To meet the requirement, Pineapple Energy plans to implement a reverse stock split before the deadline. The company will seek shareholder approval for the split at its annual meeting on July 1 and aims to enact it by July 11. PEGY stock has surged 43.7% following the announcement, with high trading volume. If the reverse stock split is approved and implemented, Pineapple Energy should be able to trade above $1 per share and regain compliance before the cutoff date.
