By Boston Business Journal

Evergreen Solar Inc. (Nasdaq:ESLRD) implemented a 1-for-6 reverse stock split on Saturday in a move to boost its share price above the $1 minimum requirement for the Nasdaq Stock Market.

The stock price had closed at 58 cents on Friday, but when adjusted for the reverse split, the closing stock price is listed at $3.50. Shares will trade under the symbol ESLRD for 20 days, but will revert to ESLR after that, Evergreen said.

The Marlborough, Mass.-based solar power technologies company said the reverse split would reduce the number of outstanding shares of the companyâ¿¿s common stock from about 209 million shares to about 35 million shares.

The reverse stock split is part of Evergreen⿿s 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,⿝ Evergreen said in a press release.

The reverse split was previously approved by shareholders last July, and Evergreen announced a new recapitalization plan in December that the company said would include the reverse stock split.

Other aspects of the plan, which led to drop in the stock price the day it was announced, include reducing the companyâ¿¿s debt and interest expenses and raising capital.

Evergreen said in a regulatory filing last week that it had transferred its stock to the Nasdaq Capital Market from the Nasdaq Global Market in order to avoid delisting in for its sub-$1 share price.

Evergreen â¿¿ a maker of solar wafers, cells and panels â¿¿ has faced stiff competition in the market for solar power products, particularly from Chinese manufacturers. The company is working to outsource its panel assembly operation from Devens, Mass., to China as a way to cut costs, and expects a new company-owned plant in China to be fully operational making solar wafers by the end of the year.

Copyright 2011 American City Business Journals

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