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Stem, Inc. Announces 1-for-20 Reverse Stock Split

Strategic Insights

— 2 min read

Stem, Inc. (NYSE: STEM) has announced that it will implement a 1-for-20 reverse stock split of its issued and outstanding shares of common stock, effective at 12:01 a.m. Eastern Time on June 23, 2025. The Company's common stock is expected to begin trading on a reverse split-adjusted basis as of the opening of trading on June 23, 2025, under the Company's existing trading symbol "STEM" with a new CUSIP number 85859N300. This move aims to regain compliance with the minimum average closing price requirement under the rules of the New York Stock Exchange (NYSE).

The Company's stockholders approved a reverse stock split at a ratio of between 1-for-10 and 1-for-20 at the Company's Annual Meeting of Stockholders held on June 4, 2025. The Company's Board of Directors subsequently determined the final reverse split ratio on June 9, 2025. As a result, the number of issued and outstanding shares of common stock will be reduced from approximately 167 million to approximately 8.4 million. The number of authorized shares of the Company's common stock will be reduced from 500,000,000 to 250,000,000.

The reverse stock split will affect all stockholders uniformly and will not alter any stockholder's percentage interest in equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares will be issued, and if a stockholder would otherwise become entitled to a fractional share, they will be entitled to receive a cash payment in lieu of a fractional share.

Key Takeaways:

  • Stem, Inc. is implementing a 1-for-20 reverse stock split to regain compliance with the NYSE's minimum average closing price requirement.
  • The reverse stock split will reduce the number of issued and outstanding shares of common stock from approximately 167 million to approximately 8.4 million.
  • The number of authorized shares of the Company's common stock will be reduced from 500,000,000 to 250,000,000.
  • No fractional shares will be issued, and if a stockholder would otherwise become entitled to a fractional share, they will be entitled to receive a cash payment in lieu of a fractional share.
  • Computershare Trust Company, N.A., will serve as the exchange agent and transfer agent for the reverse stock split.
  • The Company's Board of Directors determined the final reverse split ratio on June 9, 2025.

Statistics:

  • Initial number of issued and outstanding shares: approximately 167 million
  • Final number of issued and outstanding shares: approximately 8.4 million
  • Reduction in number of shares: 58.7%
  • New CUSIP number: 85859N300
  • Number of authorized shares: reduced from 500,000,000 to 250,000,000
  • Authorized share reduction: 50%

Sources:

  • BusinessWire: https://www.businesswire.com/news/home/20250611396515/en/
  • Stem, Inc.'s proxy statement filed with the Securities and Exchange Commission on April 23, 2025

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