Energy Focus Announces 1-for-5 Reverse Stock Split

SOLON, Ohio, June 09, 2020 (GLOBE NEWSWIRE) -- Energy Focus, Inc. (Nasdaq: EFOI), a leader in advanced LED lighting and lighting control technologies, today announced that the Company will effect a 1-for-5 reverse stock split of its common stock on June 11, 2020. The Company’s common stock is expected to begin trading on a split-adjusted basis on The Nasdaq Capital Market at the market open on June 12, 2020.

The reverse stock split is intended to increase the per share trading price of the Company’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. The reverse stock split was approved by the Company's stockholders at the Company’s Annual Meeting of Stockholders held on December 17, 2019 to be affected at the Board’s discretion within approved parameters. The specific ratio was subsequently approved by the Company's Board on June 2, 2020. As a result of the reverse stock split, every five pre-split shares of common stock outstanding will become one share of common stock. The reverse stock split reduces the number of shares of the Company’s outstanding common stock from approximately 15.9 million shares to approximately 3.2 million shares, subject to adjustment due to the payment of cash in lieu of fractional shares. The reverse stock split also applies to common stock issuable upon the exercise of the Company’s outstanding warrants and stock options.

No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares will receive cash equal to the resulting fractional interest in one share of the Company’s common stock to which the stockholder would otherwise be entitled, multiplied by the closing trading price of the Company’s common stock on June 10, 2020 (as adjusted to give effect to the reverse stock split). Holders of the Company’s common stock held in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the reverse stock split. Stockholders of record will be receiving information from Broadridge Corporate Issuer Solutions, Inc., the Company’s transfer agent, regarding their stock ownership post-split. All other questions can be directed to Broadridge Corporate Issuer Solutions, Inc. at [phone].