Nuvve stock plummets after announcing private placement deal

Investing.com -- Nuvve Holding Corp (NASDAQ:NVVE) stock plunged 42.5% Friday after the company announced it entered into a private placement securities purchase agreement and an equity line of credit.

The energy storage management company said the agreements are designed to strengthen its balance sheet and solidify its equity position. Nuvve faces a deadline of December 31, 2025, established by Nasdaq, to satisfy minimum bid price and shareholder equity requirements.

The company received shareholder approval in October to implement a reverse stock split, which will help meet Nasdaq’s minimum bid price requirement of $1. Following these capital raising measures, Nuvve believes it will be well positioned to satisfy Nasdaq’s minimum equity requirements, pending shareholder approval of the underlying transactions.

"This is a pivotal moment for Nuvve," said Gregory Poilasne, CEO of the company. "With our shareholders having approved the reverse stock split, and, now, with the securities purchase agreement and equity line of credit signed, subject to shareholder approval, we believe we are in a stronger position to execute on our business objectives and deliver value to our shareholders, customers, and partners."

The additional capital is intended to provide flexibility to support ongoing operations and future growth initiatives for the company, which specializes in technology that enables electric vehicles to provide grid services and optimize energy use.

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