LOS ANGELES--(BUSINESS WIRE)--Capstone Green Energy Corporation (OTC: CGRNQ) (the Company or Capstone) received FINRA’s Notification of the Assignment of an Over-the-Counter Quoting and Trading Symbol CGRNQ for the Common Stock of Capstone Green Energy Corp. Following this development, the Company has transitioned to trading on the OTC Expert Market, where it can be found under the ticker symbol CGRNQ.
Nasdaq delisted Capstone (CGRN), and trading in the Company’s common stock on the Nasdaq was suspended, effective on October 5, 2023. The delisting was driven by several contributing factors, including the Company’s market capitalization remaining below $30 million for 30 consecutive business days, continuous trading below $1 per share for 30 consecutive business days, and failure to file the FY23 10-K and Q1 FY24 10-Q. The Company determined not to appeal Nasdaq’s delisting determination as the previously announced bankruptcy filing will result in a delisting.
Capstone will continue to trade on an over-the-counter (OTC) market, specifically OTC Markets’ “Expert Market” tier. The Expert Market only provides for unsolicited customer orders, and quotations in Expert Market securities are restricted from public viewing and are only available to certain eligible investors. The Company’s OTC Markets profile can be found at www.otcmarkets.com.
“During this interim period prior to plan confirmation, emergence, and the completion of our delayed public filings, there is a reduction in the visibility of and accessibility to quotations of our common stock,” stated Robert Flexon, Executive Chairman and Interim President and CEO. “Once we complete the restructuring and become current in our SEC filings, we expect that our stockholders will have the visibility and access to the public markets you would expect for common stock trading over-the-counter.”
Mr. Flexon continued, “Capstone remains committed to its mission of providing innovative, sustainable energy solutions to its customers, and this restructuring is a strategic move to ensure the Company’s long-term viability.”
Capstone is continuing to work to complete work on its previously announced restatement of previously issued financial statements and to file its currently delinquent FY23 10-K and Q1 FY24 10-Q. Capstone expects that once it has become current on its SEC filings, that its common stock (or the common stock of the company whose stock will be issued to stockholders of Capstone following the reorganization) will become eligible for quotation on a higher tier of the OTC, and detailed information, including public quotes, will become available on the OTC Markets website.
Capstone initiated on September 28, 2023, a prepackaged Chapter 11 bankruptcy filing, marking a significant step forward in the Company’s ongoing financial restructuring efforts. This decision was made to address financial challenges and position the Company for a more sustainable future. The restructuring process involved a thorough evaluation of the Company’s debts, assets, and operations with the goal of achieving long-term financial stability.
More information on the Bankruptcy Court filings and information about the Chapter 11 cases can be found at a website maintained by the Debtors’ noticing and claims agent, Kroll Restructuring Administration LLC (“Kroll”), at https://cases.ra.kroll.com/capstone or by contacting Kroll at 1-844-642-1256 (Toll-Free), +1-646-651-1164 (International) or by e-mail at email@example.com. Additional details regarding the Chapter 11 cases are included in, and the description above is qualified in its entirety by, the Company’s Current Reports on Form 8-K filed with the SEC on September 28, 2023 and October 3, 2023.
About Capstone Green Energy
Capstone Green Energy (OTC: CGRNQ) is a leading provider of customized microgrid solutions, and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) are driven by the Company's industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems, creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H2S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company's microturbine energy systems.
To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY23, it saved customers over $169 million in annual energy costs and approximately 362,000 tons of carbon. Total savings over the last five years are estimated to be approximately $1.08 billion in energy savings and approximately 1.9 million tons of carbon savings.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the trading in the Company’s common stock, restructuring and the other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as "expect," "anticipate," "believe," "could," "should," "estimate," "intend," "may," "will," "plan," "goal" and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: risks attendant to the Chapter 11 bankruptcy process, including the Company’s ability to obtain court approval from the Bankruptcy Court with respect to motions or other requests made to the Bankruptcy Court throughout the course of the Chapter 11 process; the effects of Chapter 11, including increased legal and other professional costs necessary to execute the Chapter 11 process and on the Company’s liquidity and results of operations (including the availability of operating capital during the pendency of Chapter 11); the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of Chapter 11; the Company’s ability to continue funding operations through the Chapter 11 bankruptcy process, and the possibility that it may be unable to obtain any additional funding as needed; the Company’s ability to meet its financial obligations during the Chapter 11 process and to maintain contracts that are critical to its operations; the Company’s ability to comply with the restrictions imposed by the terms and conditions of the DIP Facility and other financing arrangements; objections to the DIP Facility, or other pleadings filed that could protract Chapter 11; the effects of Chapter 11 on the interests of various constituents and financial stakeholders; the effect of the Chapter 11 filings on the Company’s relationships with vendors, regulatory authorities, employees and other third parties; possible proceedings that may be brought by third parties in connection with the Chapter 11 process and risks associated with third-party motions in Chapter 11; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties; the impact and timing of any cost-savings measures and related local law requirements in various jurisdictions; the impact of litigation and regulatory proceedings; risks related to the restatement previously announced by the Company (including discovery of additional information relevant to the financial statements subject to restatement; changes in the effects of the restatement on the Company’s financial statements or financial results and delay in the filing of the amended 10-K and amended 10-Q’s due to the Company’s efforts to complete the restatement; the time, costs and expenses associated with the restatement; potential inquiries from the SEC and/or Nasdaq; the potential material adverse effect on the price of the Company’s common stock and possible stockholder lawsuits); the Company’s ability to meet the standards for trading on a higher tier of the OTC Market; and expectations regarding financial performance, strategic and operational plans, and other related matters. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.