Ascent Solar Technologies, Inc. (OTCMKTS:ASTID) Continue To Sink
Yesterday marked another disastrous session for the stock of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI). Opening at 30 cents per share the ticker slashed over 33% of its value by the time of the closing bell dropping down to a close at $0.1864 per share. Investors were even more eager to shed their holdings and the traded volume for the day surpassed 2.2 million. So far in just three sessions ASTI are down by nearly 70% compared to their June 2 opening price of $0.59.
The extremely depressing chart performance comes as a result of the reverse split that ASTI announced after the end of last Wednesday’s trading. The split became effective on the very next day leaving investors with no time to react. As a result of the 1-for-20 reverse split ASTI‘s outstanding shares were reduced to around 17 million. The authorized shares, however, remained unaffected at 450 million. This could allow the company to start issuing fresh shares all over again thanks to the fact that the outstanding preferred shares weren’t affected by the split either. At least the conversion terms of the preferred shares were adjusted proportionately.
Investors were having a hard time getting excited about ASTI even before the reverse split. Although the financial results of the company did show some signs of improvement the balance sheet of the company was still a rather depressing sight. According to latest quarterly report ASTI finished the first quarter of the year with:
• $350 thousand cash
• $9.7 million total current assets
• $15.1 million total current liabilities
• $710 thousand revenues
• $10.5 million net loss
At the end of the same period a year ago ASTI reported a net loss of more than $17 million but after reducing it by around 40% they were still left with a massive net loss of over $10 million. As for the working capital deficit it stands at approximately $5.4 million.
Subsequent to the quarter ASTI were able to boost their financials by selling $2 million worth of their newly designated Preferred G shares that could be converted into common shares at a pre-split price of $0.05. We will leave up to you to decide just how much time this financing bought the company before it has to look for more funds once again.
After such a rapid plummet down the chart ASTI could very well bounce but it remains to be seen if they will manage to stabilize. It should be obvious that any trades involving the stock must be preceded by extensive due diligence and careful planning.
