System integrator Stem Inc has received a warning over its NYSE listing, while zinc battery technology firm Eos Energy Enterprises completed the first milestones related to private equity firm Cerberus’ investment.
Both companies went public via special purpose acquisition company (SPAC) listings in 2020/21 but have seen their share prices fall substantially since as detailed in a deep-dive article by Energy-Storage.news last year (Premium access).
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Stem Inc intends to ‘cure deficiency’ of low share price
Following a nosedive in its share price after it substantially revised down its 2024 guidance, Stem Inc has received a written notice from the New York Stock Exchange (NYSE) that it has traded under US$1.00 for 30 consecutive days, the minimum average closing price needed to continue as a listed firm.
Stem Inc will now respond to the NYSE within 10 days of receiving the notice telling the exchange that it intends to cure the deficiency and return to compliance with its listing conditions. The NYSE’s rules give it six months to do so following the receipt of the notice.
To comply, its common stock will need to have a closing share price of at least US$1.00 on the last day of a calendar month within that six-month period, and an average closing price of at least US$1.00 per share over the 30-trading-day period ending on the last trading day of such month. If it doesn’t, it could be delisted.
Stem Inc is a clean energy project system integrator which has positioned itself as AI and software-driven ‘smart’ industry leader, and went public via a SPAC transaction in 2021.
Most recently, it completed three solar-plus-storage projects for developer Prometheus Power in Arizona, US.
Eos Energy Enterprises achieves first milestones related to Cerberus investment
Another company to have gone public via the SPAC route, on the separate Nasdaq exchange in 2020, is zinc battery technology firm Eos Energy Enterprises.
The firm’s share price fell to similar levels in late 2023/early 2024 after a short seller note doubted the veracity of its backlog, something the company pushed back on.
It has since recovered after a deal with private equity firm Cerberus Capital Management for a US$315 million financing package in June this year. Now, it has completed the first milestone related to the investment.
The milestones achieve related to the Eos’ automated production line, materials cost-out, improvements in the technology performance of its latest product, the Z3 battery, and its backlog/cash conversion.
The firm said it has a achieved production cycle time of less than 10 seconds while exceeding first pass yield targets in the high 90%+ range on its first battery manufacturing line, something it described as ‘a significant milestone that positions the company for future profitability’.
