China Liberal Education Holdings Limited Announces Share Consolidation

Rhea-AI Summary

China Liberal Education Holdings Limited (CLEU) announced a share consolidation plan, combining 15 ordinary shares into 1, effective January 19, 2024. This move aims to streamline the company's share structure and trading on the Nasdaq Capital Market. No fractional shares will be issued, and the authorized share capital will be US$7,500,000 divided into 500,000,000 ordinary shares of US$0.015 par value each.

Insights

Financial Analyst

Share consolidation, commonly referred to as a reverse stock split, is a significant corporate action that can influence a company's stock price and market perception. In the case of China Liberal Education Holdings Limited, reducing the number of shares outstanding by consolidating fifteen shares into one aims to potentially increase the market price per share. This maneuver is often employed by companies to meet listing requirements on exchanges that have minimum share price thresholds.

From a financial analysis standpoint, the immediate effect of such a consolidation is neutral to the intrinsic value of the company since it does not change the company's market capitalization. However, it could lead to a perceived increase in the value of the company's shares among investors. Over the long term, the success of this strategy depends on the company's operational performance and its ability to attract and retain investors' confidence.

It's also important to note that no fractional shares will be issued, which means shareholders with less than the minimum bundle for consolidation will receive rounded-up shares, potentially leading to a minor dilution of existing shares. This action should be closely monitored by investors for its impact on their holdings.

Market Research Analyst

China Liberal Education Holdings Limited's decision to consolidate shares is a strategic move that may affect investor sentiment and trading dynamics. Historically, reverse stock splits have been met with mixed reactions from the market. While they can lead to a temporary increase in stock price due to a reduced float, they can also be viewed as a sign of distress, especially if the company is struggling to meet exchange listing requirements.

Market research indicates that the long-term success of a share consolidation is contingent upon the underlying business fundamentals. If the company fails to demonstrate improved financial performance or growth prospects following the consolidation, the initial increase in share price may not be sustainable. Investors and analysts will be watching subsequent earnings reports and company announcements closely to gauge the effectiveness of this corporate action.

Securities Legal Expert

From a legal perspective, the share consolidation by China Liberal Education Holdings Limited must adhere to regulatory requirements and be executed in accordance with securities laws. The company's disclosure of the new CUSIP number and the effective date of trading on a post-consolidation basis is essential information for shareholders and the market. It ensures transparency and helps maintain orderly trading.

Shareholders should be aware that such corporate actions do not require their direct participation, as the consolidation occurs automatically. Nevertheless, it is crucial for shareholders to understand the implications of the consolidation on their individual holdings, including the rounding up of fractional shares, which is a standard practice to avoid the issuance of fractional shares that can complicate the share structure.

BEIJING, Jan. 17, 2024 /PRNewswire/ -- China Liberal Education Holdings Limited ("China Liberal" or the "Company") (NASDAQ: CLEU), a China-based company that provides smart campus solutions and other educational services, today announced that the Company plans to effect a share consolidation of fifteen (15) ordinary shares with par value of $0.001 per share each in the Company's issued and unissued share capital into one (1) ordinary share with par value of US$0.015 (the "Share Consolidation"). As a result of the Share Consolidation, each fifteen (15) pre-consolidation ordinary shares outstanding will automatically combine and convert into one issued and outstanding ordinary share without any action on the part of the shareholders.

The Share Consolidation will be effective on January 19, 2024. Beginning with the opening of trading on January 19, 2024, the Company's ordinary shares will begin trading on a post-Share Consolidation basis on the Nasdaq Capital Market under the same symbol "CLEU" but under a new CUSIP number of G2161Y117. No fractional shares will be issued in connection with the Share Consolidation. All fractional shares will be rounded up to the whole number of shares. Immediately following the Share Consolidation, the authorized share capital of the Company will be US$7,500,000 divided into 500,000,000 ordinary shares of US$0.015 par value each.

About China Liberal Education Holdings Limited

China Liberal is an educational services provider headquartered in Beijing, China. Currently, China Liberal operates two colleges: Fuzhou Melbourne Polytechnic and Strait College of Mingjiang University. It provides a wide range of services, including overseas study consulting and technological consulting for Chinese universities to improve their campus information and data management systems. These services are designed to enhance the teaching, operating, and management environment of the universities, thus establishing a "smart campus." Additionally, China Liberal offers tailored job readiness training for graduating students. For more information, please visit the Company's website at http://ir.chinaliberal.com/.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor Relations Contact

China Liberal Education Holdings Limited
Email: ir@chinaliberal.com 

Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1 646-932-7242
Email: investors@ascent-ir.com 

View original content:https://www.prnewswire.com/news-releases/china-liberal-education-holdings-limited-announces-share-consolidation-302032049.html

SOURCE China Liberal Education Holdings Limited

FAQ

What is the share consolidation plan announced by China Liberal Education Holdings Limited?

China Liberal Education Holdings Limited announced a share consolidation plan, combining 15 ordinary shares into 1, effective January 19, 2024.

When will the share consolidation be effective?

The share consolidation will be effective on January 19, 2024.

What is the new CUSIP number for China Liberal Education Holdings Limited after the share consolidation?

The new CUSIP number for China Liberal Education Holdings Limited after the share consolidation is G2161Y117.

What is the authorized share capital of the company after the share consolidation?

Immediately following the share consolidation, the authorized share capital of the company will be US$7,500,000 divided into 500,000,000 ordinary shares of US$0.015 par value each.