Remote Monitoring and Control Solutions Provider Acorn Announces 1-for-16 Reverse Stock Split Intended to Make its Shares Accessible to a Broader Range of Investors

WILMINGTON, Del., Sept. 07, 2023 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control solutions for stand-by power generators, gas pipelines, air compressors and other critical industrial equipment, announced that its Board of Directors has approved a reverse split of its Common Stock at a ratio of 1-for-16. The reverse split is intended to increase the market price of the Company's Common Stock and make Acorn’s shares accessible to a broader range of investors, including institutions and those unable to purchase or recommend low-priced stocks.

Jan Loeb, Acorn’s President and CEO, commented, “Based on Acorn’s strong financial position and solid growth prospects, our Board of Directors has approved a reverse split in an effort to make our common stock accessible to a larger base of investors. Acorn shareholders have authorized the Board to pursue a reverse split each year, for the last several years. We believe this action should also support our longer-term objective to up-list our shares to a major national exchange.

“Acorn’s total revenue grew 22% in Q2’23 and 10% in the first half of 2023, net income was also positive in both periods, and we target long-term net profit growth of approximately 20%. We are seeing encouraging trends for commercial and industrial demand for our remote monitoring and control services in both new and existing markets. We also see additional revenue opportunities from demand response (DR) programs that support electric grid operators with power provided by backup power generators during peak demand periods. We expect DR programs to benefit grid operators, our company, our dealers, and their backup generator customers, based on Acorn’s unique monitoring and control capabilities.

“Acorn had $1.6M of consolidated cash at June 30, 2023 and no debt. Acorn was operating cash-flow-positive on a consolidated basis through the first six months of 2023, and we expect to remain so moving forward, on a full-year basis, based on the achievement of our growth goals. In light of the momentum in our business, we felt this was the right time to expand the potential investor base for our stock. A higher stock price may also help facilitate accomplishing accretive acquisitions.”