Full disclosure I am an early investor in Envision Solar .
I am happy to see this well-deserved new listing on NASDAQ!
Hazel Henderson, Editor
Envision Solar has completed its Nasdaq listing as reported in the news release on the Nasdaq site & Accesswire. The company issued 2,000,000 shares and expects to receive gross proceeds of $12.0 million before deducting offering expenses.
Prior to the new listing, average pricing for the stock on the OTC market was disclosed to be $.23/share. Applying the 1:50 reverse split, the post-split equivalent stock value would have been $11.50. However, the offering price is $6/share, a 52.8% reduction in value for existing shareholders. Trading opened at $5.50, and it has continued to drift down to $5.20. Price charts on sites like Yahoo, GoogleFinance, WSJ or SeekingAlpha renormalize the new price back in time, showing a long term downtrend, and a drop after the split, rather than a pop from $.23 to $5.50.
Up-listing from the OTC exchange where it was trading at $.16/share, up to the larger exchange with a share price that is not a penny stock will make the stock more accessible to investors and may increase its liquidity. But in order to see a push up in its valuation, it will need to continue to grow and attract investor interest. Although EnvisionSolar has experienced a 336% increase in revenue year-over-year, with several high profile contracts signed with Johnson&Johnson (JNJ), NY City and Google (GOOG), its 2018 net loss was $3,598,780, which works out to a loss of $0.69/share with the post-listing, post-reverse split share count of 5.2 million shares. Most other financial ratios are also negative, and there is no analyst coverage yet, so it will likely remain a relatively high-risk equity for some time going forward, but the healthy cash balance from its listing at least gives it some runway before it has to raise money again.