Financially strapped ZBB Energy Corp., a Menomonee Falls-based developer of renewable energy power platforms and hybrid vehicle control systems, announced it plans to execute a one-for-five reverse stock split after it received a notice that its stock shares no longer comply with the minimum standards of the New York Stock Exchange (NYSE).
The NYSE also notified ZBB that if the company does not address the low selling price of its common stock, either through a reverse stock split or other action, within a reasonable amount of time, it could be delisted from the exchange.
“Accordingly, the company intends to effect a one-for-five reverse stock split on Oct. 31, 2013, to address the low selling price of its common stock,” the company stated.
As previously reported, at its 2012 annual meeting, the company’s shareholders approved a proposal that gave the board of directors the authority to engage in a reverse stock split in its discretion.
On Oct. 31, every five outstanding shares of common stock will become one share of common stock. No fractional shares will be issued in connection with the reverse split.
The company’s stock trades with the “ZBB” ticker symbol.
ZBB reported a net loss of $11.9 million in fiscal 2013.
