Chijet Motor Company Announces 1-for-30 Reverse Stock Split
Chijet Motor Company (NASDAQ: CJET) announced a 1-for-30 reverse stock split effective June 28, 2024. This move aims to comply with Nasdaq's $1.00 minimum bid price requirement. Starting July 8, 2024, CJET shares will trade on a split-adjusted basis under the same symbol. No fractional shares will be issued, with any resulting fractions rounded up. Post-split, Chijet's outstanding shares will reduce from 160,707,171 to approximately 5,356,905. Registered stockholders need not take any action, while those with physical certificates will receive book-entry shares. This action intends to boost the per-share trading price and maintain Nasdaq listing compliance.
- The reverse stock split is designed to meet Nasdaq's $1.00 minimum bid price requirement, ensuring continued listing.
- Reducing the number of shares from 160,707,171 to approximately 5,356,905 may enhance the stock's marketability and liquidity.
- A reverse stock split can indicate underlying financial struggles, potentially causing investors to lose confidence.
- Share consolidation to meet minimum price requirements could mask deeper issues in stock performance.
Insights
Chijet Motor Company's announcement of a 1-for-30 reverse stock split is aimed at meeting Nasdaq's minimum bid price requirement of
The immediate effect of this reverse split will be a reduction in the number of outstanding shares from 160,707,171 to approximately 5,356,905. Although the market capitalization remains unchanged, each share will now represent a larger ownership stake in the company.
Retail investors should understand that while reverse splits can make a stock more attractive by avoiding sub-dollar price stigma, they don't fundamentally improve a company's financial health. The long-term impact depends on whether the company can sustain its stock price above the required threshold and show solid business performance.
Historically, reverse stock splits may sometimes be seen as a sign of weakness, potentially reflecting underlying issues that led to a low stock price in the first place. Investors should keep an eye on the company's future earnings and performance to gauge the overall health and strategic direction moving forward.
Chijet intends to use a reverse-stock split to bring the company into compliance with listing requirements of The Nasdaq Global Market
NEW YORK, July 03, 2024 (GLOBE NEWSWIRE) -- Chijet Motor Company, Inc. (NASDAQ: CJET) (the “Company” or “Chijet”), a high-tech enterprise engaged in the development, manufacture, sales, and service of traditional fuel vehicles and new energy vehicles (“NEV”), announces a 1-for-30 reverse split of its ordinary shares effective June 28, 2024.
Beginning on July 8, 2024, the Company’s ordinary shares will trade on Nasdaq on a split adjusted basis. Trading in the ordinary shares will continue on the Nasdaq Stock Market under the symbol “CJET”. The new CUSIP number for the ordinary shares following the reverse stock split will be G4465R 111.
Upon effectiveness of the reverse stock split, every 30 shares of the Company’s issued and outstanding ordinary shares will automatically be converted into one share of issued and outstanding ordinary shares. No fractional shares will be issued as a result of the reverse stock split. Instead, any fractional shares that would have resulted from the split will be rounded up to the next whole number.
Registered stockholders holding their shares of ordinary shares in book-entry or through a bank, broker or other nominee form do not need to take any action in connection with the reverse stock split. Stockholders holding physical stock certificates will also generally receive book-entry shares instead of their existing certificates, The Company’s transfer agent, Equiniti Trust Company, LLC will send further instructions.
The reverse stock split is intended to increase the per share trading price of the Company’s ordinary shares to satisfy the
Chijet Contact:
2888 Donshan Street
Gaoxin Automobile Industrial Park
Jilin City, JL. P.R.China
400-606-8888
EMAIL: info@chijetmotors.com
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835 x2
Email: info@skylineccg.com
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Chijet’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding Chijet’s leadership team, Chijet’s continued growth and financial and operational improvements, along with those other risks described under the heading “Risk Factors” in the prospectus Chijet filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2023, and those that are included in any of Chijet’s future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Chijet and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chijet undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.
FAQ
What is the effective date of Chijet's 1-for-30 reverse stock split?
When will Chijet's shares start trading on a split-adjusted basis?
What is the new CUSIP number for Chijet's shares post-split?
How many shares of Chijet will be outstanding after the reverse stock split?
Why is Chijet conducting a reverse stock split?
