AGAPE ATP Corporation Announces 1-for-20 Reverse Stock Split Effective August 30

Rhea-AI Summary

AGAPE ATP (NASDAQ: ATPC) has announced a 1-for-20 reverse stock split effective August 30, 2024. This strategic move aims to increase the market price per share to comply with NASDAQ's continued listing standards. Key points include:

- Trading on a split-adjusted basis begins August 30, 2024
- Authorized shares reduced from 1,000,000,000 to 50,000,000
- Symbol remains 'ATPC' but with a new CUSIP number
- Company focuses on health and wellness products and energy-saving solutions

This corporate action is designed to maintain NASDAQ listing compliance, potentially impacting shareholder value and market perception.

Positive

• Potential compliance with NASDAQ's minimum price per share requirement
• Maintenance of NASDAQ listing, providing continued access to capital markets
• Reduction in total authorized shares, potentially limiting future dilution

Negative

• No change in company's market capitalization
• Potential decrease in stock liquidity due to fewer outstanding shares
• Risk of not achieving desired share price increase post-split

Insights

Financial Analyst

The 1-for-20 reverse stock split announced by AGAPE ATP is a significant development for investors. This move is primarily aimed at boosting the stock price to meet NASDAQ's continued listing requirements. While it doesn't change the company's fundamental value, it could have several implications:

• Reduced share count may increase volatility and potentially affect liquidity.
• Higher share price might attract institutional investors who have minimum price thresholds.
• The drastic reduction in authorized shares from 1 billion to 50 million limits future dilution potential.

Investors should monitor post-split trading patterns and any changes in institutional ownership. The success of this move will largely depend on the company's ability to maintain the higher share price through improved financial performance and market perception.

Market Research Analyst

AGAPE ATP's reverse split decision reflects broader market challenges faced by small-cap companies. This move is a defensive strategy to maintain NASDAQ listing, which is important for visibility and liquidity. Key points to consider:

• The split doesn't address underlying business performance issues that led to the low stock price.
• It may temporarily deter some retail investors due to the perception of a higher entry price.
• The company's focus on health, wellness and energy-saving solutions aligns with growing market trends, but execution is key.

Investors should closely examine AGAPE's revenue growth, market penetration strategies and competitive positioning in its core segments. The success of this financial maneuver will ultimately depend on the company's ability to capitalize on market opportunities and deliver tangible results.

KUALA LUMPUR, MALAYSIA, Aug. 28, 2024 (GLOBE NEWSWIRE) -- AGAPE ATP Corporation (NASDAQ: ATPC) (“Agape” or “the Company”,) today announced the filing of a Certificate of Change with the Secretary of State of Nevada, effective on August 30, 2024, for a 1-for-20 reverse stock split of its shares of common stock, as disclosed in its filings with the Securities and Exchange Commission. The Company’s common stock will begin trading on a split-adjusted basis when the market opens on August 30, 2024. The number of authorized shares of Agape common stock is reduced from 1,000,000,000 to 50,000,000.

The Company’s shares of common stock will continue to trade on the NASDAQ under the symbol “ATPC” but will trade under a new CUSIP number. The reverse stock split is intended to increase the market price per share of the Company’s common stock in order to comply with NASDAQ’s continued listing standards relating to minimum price per share.

Agape ATP Corporation (ATPC) is dedicated to enhancing the quality of life and promoting sustainable development. With a strong foundation built on two core business pillars, ATPC specialises in the provision of health and wellness products that caters to the diverse needs of its customers, ensuring their well-being and vitality. Additionally, APTC delivers comprehensive energy-saving solutions that empower companies to drive sustainability initiatives, reduce energy consumption, and achieve their sustainability goals.

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About AGAPE ATP Corporation

Agape ATP Corporation (ATPC) is dedicated to enhancing the quality of life and promoting sustainable development. With a strong foundation built on two core business pillars, ATPC specialises in the provision of health and wellness products that caters to the diverse needs of its customers, ensuring their well-being and vitality. Additionally, APTC delivers comprehensive energy-saving solutions that empower companies to drive sustainability initiatives, reduce energy consumption, and achieve their sustainability goals.

For more information, visit https://atpc.com.my/.

PRESS RELEASE

For Immediate Distribution

Issued By: Swan Consultancy Sdn. Bhd. on behalf of Agape ATP Corporation
For more information, please contact:

Jazzmin Wan
Tel: +60 17-289 4110
Email: j.wan@swanconsultancy.biz

Mandy Tan
Tel: +60 16-477 2257
Email: m.tan@swanconsultancy.biz

Forward-Looking Statements

Certain statements contained in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected benefits and outcomes of the relaunch of ATPC Green Energy, the support from B&H Intec Solution, and the potential for energy-saving solutions in various sectors. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the Company’s ability to execute its strategies, manage growth, and maintain its corporate culture; the Company’s future business development, financial conditions, and results of operations; expectations regarding demand for and market acceptance of our products and services; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in Malaysia and the international markets the Company plans to serve, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and AGAPE ATP Corporation specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

FAQ

What is the reverse stock split ratio for AGAPE ATP (ATPC)?

AGAPE ATP (ATPC) has announced a 1-for-20 reverse stock split, effective August 30, 2024.

When will ATPC's reverse stock split take effect?

The reverse stock split for ATPC will take effect on August 30, 2024, with trading on a split-adjusted basis beginning when the market opens on that day.

How will the reverse split affect ATPC's authorized shares?

The reverse split will reduce ATPC's authorized shares from 1,000,000,000 to 50,000,000.

Will ATPC's stock symbol change after the reverse split?

No, ATPC will continue to trade under the symbol 'ATPC' on NASDAQ, but it will have a new CUSIP number.

What is the main reason for ATPC's reverse stock split?

The primary reason for ATPC's reverse stock split is to increase the market price per share to comply with NASDAQ's continued listing standards relating to minimum price per share.