Evergreen Solar, Inc. (Nasdaq: ESLR), a manufacturer of String Ribbon® solar power products with its proprietary, low-cost silicon wafer technology, today announced that it will effect the 1-for-6 reverse stock split previously approved by the Company's stockholders at the annual meeting of stockholders on July 27, 2010.
The 1-for-6 reverse split of the Company’s common stock will be effective at 12:01 a.m. Eastern Standard Time, on Saturday, January 1, 2011. Due to the reverse stock split, Evergreen Solar’s common stock will trade under a new CUSIP number, 30033R306, and will temporarily trade under the symbol “ESLRD” for 20 trading days beginning January 3, 2011, after which time the symbol will revert to “ESLR.” The reverse split will reduce the number of outstanding shares of the Company's common stock from approximately 209 million shares to approximately 35 million shares. Proportional adjustments will be made to conversion and exercise prices of the Company’s outstanding convertible debt, outstanding stock options and other equity incentive awards, and to the number of shares issued and issuable under the Company's equity compensation plans.
The reverse stock split is being completed as part of the Company’s comprehensive recapitalization plan which is intended to align the Company's capital structure with its current business model and to better position the Company for future growth as previously announced on December 6, 2010, which, if fully executed, will:
- Substantially reduce the Company's outstanding indebtedness and annual interest expense;
- Exchange a substantial portion of the Company's existing convertible debt for new debt with longer maturities and lower conversion prices;
- Create a capital structure that should provide greater incentive to convertible debt holders to convert their notes into shares of the Company's common stock, which would further accomplish Evergreen Solar's goal of substantially reducing outstanding debt; and
- Enhance the Company's flexibility to manage its business by eliminating certain restrictive covenants and the security interests contained in existing debt instruments.
Information for StockholdersOn the effective date of the reverse stock split, each six shares of issued and outstanding common stock will be converted into one share of common stock. Registered holders of the Company’s common stock will receive a letter of transmittal shortly after the effective date with instructions for exchanging their existing stock certificates for a statement representing the number of shares of post-split Evergreen Solar common stock to which they are entitled. Evergreen Solar will be issuing all post-split shares through the paperless Direct Registration System ("DRS"), also known as ‘book entry form’. American Stock Transfer and Trust Company will act as the exchange agent and can be contacted at (877) 248-6417 or (718) 921-8317. Stockholders with their shares in brokerage accounts will have their account automatically adjusted, no further action is required on their part.