This article first appeared on GuruFocus.
Sep 30 – Wolfspeed (NYSE:WOLF) shares skyrocketed Monday as the company completed a major restructuring tied to its bankruptcy plan. The stock closed at $20.89, a jump of more than 1,700% from Friday’s $1.21 close, after all previously issued shares were cancelled and replaced with a new issuance.
Wolfspeed was also up 30% on early Tuesday.
Under the plan, shareholders received a pro rata share of about 1.3 million new Wolfspeed common shares at an exchange ratio of 0.008352. Additional shares may be granted if certain regulatory milestones are achieved. The company’s float now stands at roughly 25.84 million shares, down sharply from the prior 156.48 million. According to an SEC filing, the old shares are set to be delisted around October 10.
Trading was briefly halted Monday due to volatility but resumed later in the session, with shares climbing further in after-hours activity to more than $24.
Wolfspeed, once known as Cree, is pushing to strengthen its position in silicon carbide technology for electric vehicles and renewable energy systems. The company is also building a $5 billion manufacturing plant in North Carolina with federal subsidies, highlighting its role in U.S. chipmaking ambitions.
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