NEWARK, N.J.--(BUSINESS WIRE)--Lime Energy Co., a leading provider of energy services to utilities and their commercial customers, announced today the final terms of its previously announced Reverse/Forward Stock Split. At the company’s special meeting of stockholders held on January 31, 2017, the stockholders approved each of the alternative Reverse/Forward Stock Split proposals presented at the meeting, subject to final approval from the company’s Board of Directors. Immediately following the special meeting, the Board of Directors approved the Reverse/Forward Stock Split and finalized its terms, including electing a reverse-split ratio of 1-for-300 followed immediately by a forward-split ratio of 300-for-1. The Board set February 10, 2017, as the record date and effective date for the Reverse/Forward Stock Split, which will be effective following the end of trading on that day (the “Effective Date”).
The purpose of the Reverse/Forward Stock Split is to enable the company to reduce the number of record holders of the common stock so as to allow the company to terminate the registration of its common stock. Terminating such registration will allow the company to suspend its reporting obligations and thereby eliminate the significant costs of being a public reporting company. Please refer to the company’s recent public filings for a full explanation of the Reverse/Forward Stock Split.
Following the Effective Date, the company’s common stock will continue to trade on OTCPink under the current trading symbol “LIME” accompanied by a new CUSIP number.
As a result of the Reverse/Forward Stock Split, each stockholder of record with less than 300 shares of the company’s common stock immediately prior to the Reverse Stock Split will receive a cash payment for their shares in an amount not less than $2.49 per pre-split share and will no longer be a stockholder of the company. Please refer to the company’s public filings for a full explanation of how such stockholders will be compensated. All other stockholders will be unaffected by Reverse/Forward Stock Split.
The company’s transfer agent, Wells Fargo Shareowner Services, will act as exchange agent for the Reverse/Forward Stock Split and will provide instructions to current record stockholders regarding the cash payment and the exchange of certificates, as applicable.
Following the Effective Date, the company expects to promptly file the documents necessary to suspend its status as a public reporting company.
About Lime Energy
Lime Energy is building a new energy future. As a leading national provider of energy efficiency for small business customers, Lime designs and implements direct install programs for our utility clients which consistently exceed program savings goals. Our award-winning, integrated services programs provide utilities with reliable energy efficiency resources while delivering the highest levels of customer satisfaction. This next generation approach is helping utilities across the country to go deeper and broader with the cheapest, cleanest and fastest energy resource that we have – energy efficiency.
Forward Looking Statements
This press release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Lime Energy’s current expectations about its future results, performance, prospects and opportunities. You can identify these forward-looking statements by the use of words and phrases such as “may,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “should,” “typical,” “preliminary,” “hope,” or similar expressions.
The forward-looking statements in this release reflect management’s current views of future events and operations, including but not limited to statements about the Effective Date of the Reverse/Forward Stock Split and the effects of the Reverse/Forward Stock Split. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. Please see Lime Energy’s recent filings with the Securities and Exchange Commission for information about risks that may affect the Company. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and Lime Energy does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized.