Addentax Group Corp. Announces Reverse Stock Split

Rhea-AI Summary

Addentax Group Corp (Nasdaq: ATXG) approved a 1-for-15 reverse stock split effective 12:01 a.m. ET on March 30, 2026. The Board approved the split on March 19, 2026, after stockholder approval at the January 30, 2026 annual meeting. The Amendment was filed with Nevada on March 24, 2026.

Beginning at market open on March 30, 2026, ATXG will trade on Nasdaq on a reverse-split adjusted basis under the same symbol with a new CUSIP (00653L400). No fractional shares will be issued; holders entitled to fractions will receive one whole share.

Positive

• Reverse stock split ratio of 1-for-15
• Effective date set at March 30, 2026 at 12:01 a.m. ET
• New trading CUSIP: 00653L400

Negative

• Minor percentage changes possible from fractional share rounding

News Market Reaction – ATXG

-16.62%

9 alerts

-16.62% News Effect

+5.4% Peak Tracked

-29.7% Trough Tracked

-$864K Valuation Impact

$4.33M Market Cap

0.0x Rel. Volume

On the day this news was published, ATXG declined 16.62%, reflecting a significant negative market reaction. Argus tracked a peak move of +5.4% during that session. Argus tracked a trough of -29.7% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $864K from the company's valuation, bringing the market cap to $4.33M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Reverse split ratio: 1-for-15 Par value: $0.001 per share Current price: $0.37 +5 more

8 metrics

Reverse split ratio 1-for-15 Common stock reverse split approved March 19, 2026

Par value $0.001 per share Par value unchanged after reverse split

Current price $0.37 Pre-news trading level vs 52-week range

52-week range $0.2215 – $1.86 Low and high prior to reverse split announcement

Revenue $2.62M Nine months ended Dec 31, 2025

Net loss $4.69M Nine months ended Dec 31, 2025

Potential equity investment US$200M Non-binding MOUs at proposed $1.50 per share

Convertible notes converted $3.1M into ~5.7M shares Conversion increased shares to 11,715,348 by Feb 13, 2026

Market Reality Check

Price: $5.85 Vol: Volume 416,609 is 0.14x t...

low vol

$5.85 Last Close

Volume Volume 416,609 is 0.14x the 20-day average of 3,006,213, indicating relatively light trading before this announcement. low

Technical Price at $0.37 is below the 200-day MA $0.54 and 80.11% under the $1.86 52-week high.

Peers on Argus

Pre-news, ATXG traded at $0.37 while momentum data flagged peers like SFWL and P...

2 Up

Pre-news, ATXG traded at $0.37 while momentum data flagged peers like SFWL and PSIG moving up, and the scanner classified ATXG’s move as down. With peers in momentum moving the opposite direction and no same‑day peer headlines, trading appeared stock-specific rather than sector-driven.

Historical Context

5 past events · Latest: Mar 17 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 17	Fintech acquisition talks	Positive	-1.0%	Negotiations to acquire up to 20 online lending platforms across Asia Pacific.
Feb 12	Stablecoin initiative	Positive	-2.6%	Advanced talks on sovereign-aligned, regulatory-compliant stablecoin in Southeast Asia.
Feb 11	AI lending acquisition	Positive	-8.0%	Late-stage negotiations to acquire licensed AI-enabled digital lending platform.
Feb 10	Equity investment MOUs	Positive	+0.8%	MOUs for potential US$200 million equity investment at proposed $1.50 per share.
Feb 06	Wealth platform acquisition	Positive	-5.8%	Proposed acquisition of AI-empowered, crypto-enabled asset management platform.

Pattern Detected

Recent strategic and fintech announcements with generally positive implications often saw negative next‑day price reactions, suggesting a pattern of weak follow-through on ostensibly favorable news.

Recent Company History

Over the past few months, Addentax has focused on fintech and digital finance expansion, including proposed acquisitions of AI-enabled lending and wealth platforms and negotiations to buy up to 20 online lenders serving over 600,000 customers. It also disclosed non-binding MOUs for a potential US$200 million equity investment at $1.50 per share and a Bitcoin-linked stablecoin initiative. Despite these growth-oriented updates, most related news events were followed by negative short-term price moves.

Market Pulse Summary

The stock dropped -16.6% in the session following this news. A negative reaction despite the mechani...

Analysis

The stock dropped -16.6% in the session following this news. A negative reaction despite the mechanical nature of the 1-for-15 reverse stock split would have been consistent with prior patterns where ostensibly constructive news was followed by selling. Recent growth and fintech initiatives often saw post-news declines, so a sharp drop after this action would have fit that history without necessarily reflecting any new information about revenues of $2.62M or existing strategic plans.

Key Terms

reverse stock split, par value, cusip, fractional share, +4 more

8 terms

reverse stock split financial

"approval of the reverse stock split proposal at the Company's 2025 Annual Meeting"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

par value financial

"without any change in the par value of $0.001 per share"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

cusip financial

"on a Reverse Stock Split adjusted basis with a new CUSIP number (00653L400)"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

fractional share financial

"No fractional share will be issued in connection with the foregoing combination"

A fractional share is a portion of a single stock that is worth less than one full share, like owning a slice of a pizza instead of the whole pie. It lets investors buy and hold part of expensive stocks or spread small amounts of money across many companies, which helps with diversification and regular investing; dividends and price changes affect fractional shares proportionally, though some rights and trading rules can vary by provider.

transfer agent financial

"The Company's transfer agent, Transfer Online, Inc., is acting as the exchange agent"

A transfer agent is a financial service that keeps the official record of who owns a company's shares, handles the buying and selling of those shares on paper or electronically, and issues or cancels stock certificates. Think of it as the company’s records keeper and mailroom combined—investors rely on it to make sure dividends, shareholder mailings, ownership changes, and proxy voting are processed accurately and securely, which protects ownership rights and helps prevent errors or fraud.

book-entry technical

"Stockholders who hold their shares in book-entry form or in "street name""

A book-entry is an electronic record that shows who legally owns a share, bond or other security instead of a paper certificate. Think of it like a bank ledger entry that tracks ownership and transfers; it makes buying, selling, dividend payments and ownership checks faster, cheaper and less risky for investors because nothing physical needs to be moved or stored.

street name financial

"or in "street name" (i.e., through a broker, bank or other holder of record)"

A "street name" is a way that stocks or other financial assets are registered under a broker's name rather than directly in an individual investor's name. This allows for easier buying, selling, and transferring of the assets, much like how a library might hold books on behalf of many readers. For investors, using a street name simplifies transactions and helps maintain privacy, but it also means the broker is the official record holder of ownership.

articles of incorporation regulatory

"authorized the filing of a Certificate of Amendment to the Company's Articles of Incorporation"

A formal legal document filed with a government authority that creates a corporation and sets its basic rules — for example the company name, business purpose, how many ownership shares can exist, and who can receive legal notices. It matters to investors because it defines ownership structure, voting rights, and limits on liability, shaping who controls the company and how future shares or dividends can affect an investor’s stake; think of it as the company’s birth certificate and rulebook.

AI-generated analysis. Not financial advice.

SHENZHEN, China, March 26, 2026 /PRNewswire/ -- Addentax Group Corp. (Nasdaq: ATXG) (the "Company") announced today that following the stockholder approval of the reverse stock split proposal at the Company's 2025 Annual Meeting of Stockholders held on January 30, 2026, the Board of Directors of the Company, on March 19, 2026, approved a reverse stock split of the Company's common stock at a ratio of 1-for-15 (the "Reverse Stock Split") and authorized the filing of a Certificate of Amendment to the Company's Articles of Incorporation (the "Amendment") to effect the Reverse Stock Split.

On March 24, 2026, the Company filed the Amendment with the Secretary of State of the State of Nevada to effect the Reverse Stock Split. The Amendment will become effective at 12:01 a.m. (Eastern Time) on March 30, 2026 (the "Effective Time").

As a result of the Reverse Stock Split, every fifteen (15) shares of common stock outstanding immediately prior to the Effective Time will be reclassified and combined into one share of common stock, without any change in the par value of $0.001 per share or the total number of authorized shares. Beginning with the opening of trading on March 30, 2026, the Company's common stock will be available for trading on the Nasdaq Capital Market under the symbol "ATXG" on a Reverse Stock Split adjusted basis with a new CUSIP number (00653L400).

No fractional share will be issued in connection with the foregoing combination of the shares pursuant to the Reverse Stock Split. Stockholders who would otherwise be entitled to receive a fractional share as a result of the Reverse Stock Split will receive one whole share of common stock in lieu of such fractional share.

The Company's transfer agent, Transfer Online, Inc., is acting as the exchange agent for the Reverse Stock Split. Stockholders who hold their shares in book-entry form or in "street name" (i.e., through a broker, bank or other holder of record) are not required to take any action. The Reverse Stock Split will affect all stockholders uniformly and will not alter any stockholder's percentage interest in the Company's equity, except for minor changes resulting from the treatment of fractional shares.

About Addentax Group Corp.

Addentax Group Corp. is an integrated service provider specializing in garment manufacturing and logistics services. For more information about the Company, please visit the website: https://www.addentax.com/.

Caution Concerning Forward Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of known and unknown uncertainties, risks and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended March 31, 2025. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Company Contact:

Public Relations Contact:
Addentax Group Corp.
Phone: + (86) 755 86961 405
yoongxin.chan@zgyingxi.com

Investor Relations Contact:

Sherry Zheng
WAVECREST GROUP INC.
1-718-213-7386
sherry@wavecrestipo.com

View original content:https://www.prnewswire.com/news-releases/addentax-group-corp-announces-reverse-stock-split-302726179.html

SOURCE Addentax Group Corp.

FAQ

What is the reverse stock split ratio and effective date for Addentax (ATXG)?

The reverse stock split is 1-for-15, effective at 12:01 a.m. ET on March 30, 2026. According to the company, the Amendment filed March 24, 2026 makes the split effective March 30, 2026 and trading will reflect the adjusted share count at market open.

Will Addentax (ATXG) change its trading symbol after the March 30, 2026 reverse split?

No, Addentax will continue trading under the symbol ATXG on Nasdaq after the reverse split. According to the company, only the share count and a new CUSIP (00653L400) will change, not the ticker symbol.

How will fractional shares be handled in the ATXG 1-for-15 reverse split?

No fractional shares will be issued; holders entitled to fractions will receive one whole share instead. According to the company, this conversion replaces fractional entitlements with whole shares as part of the exchange process.

Do Addentax shareholders need to take action for the March 30, 2026 reverse split?

No action is required for shareholders holding shares in book-entry or street name form. According to the company, Transfer Online, Inc. is acting as exchange agent and brokers will implement the reverse split for their clients.

When did Addentax (ATXG) obtain stockholder approval for the reverse split?

Stockholders approved the reverse split at the annual meeting held on January 30, 2026. According to the company, the Board then approved the specific 1-for-15 split on March 19, 2026 and filed the Amendment March 24, 2026.