The common stock shares of Advanced Engine Technologies, Inc., the developer of the OX2 rotary engine (earlier post), have been reverse split 1-for-20. The announcement was made following the recent approval of the proposed reverse stock split by current shareholders.
We believe the reverse stock split will facilitate long term growth and increase shareholder value. The goal was to provide AET with the treasury stock needed to raise additional capital in the public and private sectors to complete development and subsequent commercialization of the OX2 engine.
—AET Chief Operating Officer, John Luft
As of the reverse stock split, more than 43,000,000 shares or options to purchase shares had been issued out of the 50,000,000 shares authorized by AET’s Articles of Incorporation. This left AET with an insufficient number of treasury shares available to issue so as to raise working capital, the company said.
The reverse split, which was approved by AET shareholders on 23 July 2010, will reduce the number of shares of outstanding common stock from approximately, 33,885,000 shares as of 11 Nov. 2009, to approximately 1,694,250 shares, based upon the reverse stock split ratio of 1-for-20. Rights to exercise previously granted, but not yet exercised, stock options will also be adjusted based upon the 1-for-20 ratio.
The OX2 is a 4-stroke, 1.1-liter internal combustion engine that weighs 75 percent less than and is half the size of traditional internal combustion engines.
The rotary engine is an 8-cylinder barrel configuration, using a stationary head and cam plate, and rotating cylinder block and piston plates. Each cylinder fires twice per revolution and two cylinders fire simultaneously, resulting in four times the output per revolution of a conventional four-stroke engine at the same displacement. The engine can be adapted to run any combustible gas or liquid as fuel.
With its expected higher power-to-weight ratio, multi-fuel capacity and anticipated low emissions and fuel efficiency, the OX2 has a practical application in the commercial and industrial generator markets. Additional future applications may include marine, light-duty farm and construction equipment, light aircraft and hybrid electric vehicles.