EZGO Announces 1-for-40 Reverse Share Split Effective April 12, 2024

Rhea-AI Summary

EZGO Technologies approved a one-for-forty Reverse Share Split to increase market price per share and maintain Nasdaq listing. No shareholder vote needed. Shareholders will receive full shares for fractional ones.

Insights

Financial Analyst

The announcement of EZGO Technologies Ltd.'s reverse stock split is a strategic financial maneuver aimed at bolstering the share price to comply with Nasdaq's minimum price requirements. This decision, often seen in companies facing delisting pressures, can have mixed implications for shareholders and potential investors. On one hand, it may stave off delisting and preserve the prestige and liquidity benefits associated with being on a major exchange. On the other hand, it could be perceived as a cosmetic change that does not address underlying business challenges.

From a market perspective, the reverse split may temporarily boost the stock price, but the long-term impact will hinge on the company's operational performance. Investors should monitor EZGO's subsequent earnings reports and business developments to assess the efficacy of this financial restructuring in the context of the company's overall growth strategy.

Market Research Analyst

In the context of the transportation solutions sector in China, EZGO Technologies Ltd.'s reverse split reflects a broader industry trend where companies are adapting to market conditions and regulatory requirements. The transportation solutions market is highly competitive and companies often need to maintain a strong financial image to attract partnerships and customer trust.

While the reverse split does not directly influence the company's market share or technological advancements, it may indirectly affect investor perception and company valuation. Stakeholders should consider industry benchmarks and EZGO's market position to evaluate the potential long-term benefits or drawbacks of the reverse split, especially in relation to the company's ability to fund innovation and expand its market presence.

CHANGZHOU, China, April 10, 2024 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or "we," "our," or the "Company"), a leading short-distance transportation solutions provider in China, today announced that on March 22, 2024, its board of directors approved a reverse split of its ordinary shares on a one-for-forty basis (the "Reverse Share Split"). The Company's ordinary shares will begin trading on a post-split basis on April 12, 2024.

As a result of the Reverse Share Split, each forty (40) pre-split ordinary shares of the Company will be automatically combined into one (1) ordinary share without any action on the part of the holders, with par value of the ordinary shares of the Company being changed from $0.001 per share to $0.04 per share, and the Company's issued and outstanding ordinary shares will be reduced from 102,165,549 to approximately 2,554,139. The Company's ordinary shares will continue to trade on the Nasdaq Capital Market ("Nasdaq") under the symbol "EZGO" under a new CUSIP number – G5279F110. The Reverse Share Split is intended to increase the market price per share of the Company's ordinary shares to allow the Company to maintain its Nasdaq listing.

No fractional shares will be issued as a result of the Reverse Share Split. Shareholders who would receive a fractional share as a result of the 40 for 1 Reverse Split shall receive, if they hold a fractional share equal to one-half or more, a full ordinary share, and if they hold a fractional share equal to less than one-half of an ordinary share, then that fractional share will be cancelled.

The Reverse Share Split will not be submitted to a vote of the Company's shareholders as a vote was not required under the laws of the British Virgin Islands.

The Company's transfer agent, VStock Transfer, LLC, will act as the exchange agent. Adjustments made to ordinary shares represented by physical stock certificates can be made upon surrender of the certificate to the transfer agent. Please contact VStock Transfer, LLC for further information at (212) 828-8436.

About EZGO Technologies Ltd.

Leveraging an Internet of Things (IoT) product and service platform and two e-bicycle brands, "EZGO" and "Cenbird," EZGO has established a business model centered on the design, manufacturing and sale of two-and three-wheeled electric vehicles, intelligent robots, complemented by electric vehicle accessories including batteries, charging piles and electronic control system. For additional information, please visit EZGO's website at www.ezgotech.com.cn. Investors can visit the "Investor Relations" section of EZGO's website at www.ezgotech.com.cn/Investor.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the 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 following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the short-distance transportation solutions market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China 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 Securities and Exchange Commission (the "SEC"), including the Company's most recently filed Annual Report on Form 20-F and its subsequent filings. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

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

 

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SOURCE EZGO Technologies Ltd.

FAQ

What did EZGO Technologies announce on March 22, 2024?

EZGO Technologies announced a Reverse Share Split of its ordinary shares on a one-for-forty basis.

When will EZGO Technologies 's ordinary shares begin trading on a post-split basis?

EZGO Technologies 's ordinary shares will begin trading on a post-split basis on April 12, 2024.

What is the purpose of the Reverse Share Split by EZGO Technologies ?

The Reverse Share Split is intended to increase the market price per share of EZGO Technologies 's ordinary shares to maintain its Nasdaq listing.

Will fractional shares be issued as a result of the Reverse Share Split?

No fractional shares will be issued as a result of the Reverse Share Split by EZGO Technologies

Who will act as the exchange agent for EZGO Technologies during the Reverse Share Split?

The Company's transfer agent, VStock Transfer, , will act as the exchange agent.