On September 24, 2024, Steve Roach, a stakeholder in FuelCell Energy, Inc., publicly urged fellow stockholders to vote against the company's proposed reverse stock split. The reverse stock split, which would consolidate shares at a ratio between one for ten and one for thirty, is intended to help the company regain compliance with Nasdaq's minimum bid price requirement. However, Roach argues that the true purpose behind the proposal is to enable the board to continue selling shares into the market, thus diluting stockholder value while avoiding accountability. Roach highlights the company's declining share price, which stood at $0.40 at the close of trading on the day of the announcement, down from over $1 per share on April 17, 2024. He points to the...Show More

On September 24, 2024, Steve Roach, a stakeholder in FuelCell Energy, Inc., publicly urged fellow stockholders to vote against the company's proposed reverse stock split. The reverse stock split, which would consolidate shares at a ratio between one for ten and one for thirty, is intended to help the company regain compliance with Nasdaq's minimum bid price requirement. However, Roach argues that the true purpose behind the proposal is to enable the board to continue selling shares into the market, thus diluting stockholder value while avoiding accountability. Roach highlights the company's declining share price, which stood at $0.40 at the close of trading on the day of the announcement, down from over $1 per share on April 17, 2024. He points to the company's increasing net losses and share count since the announcement of its 'Powerhouse' business strategy in 2020, suggesting that the strategy has failed to generate returns for stockholders. Roach's letter to stockholders also criticizes the board's lack of a plan to achieve profitability and calls for an end to dilutive equity raises. He emphasizes that the reverse stock split would not change the number of authorized shares, potentially allowing for further dilution without stockholder approval. Roach's appeal is part of a voluntary submission to the SEC in the interest of public disclosure.