New Fortress Energy fell 4.1% in Wednesday's trading after its board approved a 1-for-50 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement. Shareholders approved the split at the annual meeting on June 17, and the Class A common stock is expected to begin trading on a split-adjusted basis starting September 11. If implemented as of July 31, outstanding shares would drop from 285,634,650 to 5,712,693. The company, which closed at $0.26 per share on Tuesday, faces a severe liquidity crunch with rising debt and missed interest payments.
New Fortress Energy LLCReverse stock split and liquidity crunch with missed interest payments signal financial distress.
