China Pharma Holdings Inc. Announces 1-for-10 Reverse Stock Split

Rhea-AI Summary

China Pharma Holdings Inc. (NYSE American: CPHI) announced a 1-for-10 reverse stock split effective March 6, 2023. This decision was approved unanimously by the Board of Directors and stockholders at the Annual Meeting held on December 27, 2022. Following the split, the new CUSIP number for common stock will be 16941T-203. Each stockholder's percentage interest will remain unchanged, although fractional shares will be rounded up to the nearest whole share. China Pharma specializes in pharmaceuticals targeting high-incidence diseases in China, and maintains a broad distribution network across the country.

Positive

• The reverse stock split is expected to improve the company's stock price and market perception.
• Approval of the split indicates board confidence in the company's future.
• Maintaining a stable distribution network across China enhances operational prospects.

Negative

• Reverse stock splits can sometimes indicate underlying financial issues or declining stock performance.

HAIKOU, China, Feb. 24, 2023 /PRNewswire/ -- China Pharma Holdings Inc. ("China Pharma" or the "Company") (NYSE American: CPHI) reported that it expects to implement a 1-for-10 reverse stock split on its common stock effective Monday, March 6, 2023, with trading to begin on a split-adjusted basis at the market open on that day. Trading in the common stock will continue on the NYSE American under the symbol "CPHI". The new CUSIP number for the common stock following the reverse stock split is 16941T-203.

The reverse stock split at a ratio of 1-for-10 shares was approved by the Company's Board of Directors through unanimous written consent and the Company's stockholders through Annual Meeting for the fiscal year ended on December 31, 2021, which was held on December 27, 2022.

Upon the effectiveness of the reverse stock split, every 10 shares of the Company's issued and outstanding common stock will automatically be converted into one share of issued and outstanding common stock. 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. The reverse stock split affects all stockholders uniformly and will not alter any stockholder's percentage interest in the Company's outstanding common stock, except for adjustments that may result from the treatment of fractional shares.

About China Pharma Holdings, Inc.

China Pharma Holdings, Inc. (NYSE American: CPHI) is a specialty pharmaceutical company that develops, manufactures, and markets a diversified portfolio of products, focusing on conditions with high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company's cost-effective business model is driven by market demand and supported by new GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across all major cities and provinces in China. The Company's wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit www.chinapharmaholdings.com. The Company routinely posts important information on its website.

Safe Harbor Statement 

Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties may include, but are not limited to: the achievability of financial guidance; success of new product development; unanticipated changes in product demand; increased competition; downturns in the Chinese economy; uncompetitive levels of research and development; and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations, except as required by applicable law or regulation.

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SOURCE China Pharma Holdings, Inc.

FAQ

What is the effective date of China Pharma's reverse stock split?

The reverse stock split will be effective on March 6, 2023.

What is the ratio of China Pharma's reverse stock split?

The reverse stock split is at a ratio of 1-for-10.

Will shareholders retain their percentage interest after the split?

Yes, shareholders will retain their percentage interest, although fractional shares will be rounded up.

What is the new CUSIP number after the reverse stock split for CPHI?

The new CUSIP number following the split will be 16941T-203.

Why did China Pharma implement a reverse stock split?

The company aims to improve its stock price and market perception.