Golden Sun Health Technology Group Limited Announces 1-for-10 Share Consolidation

Rhea-AI Summary

Golden Sun Health Technology Group , formerly known as Golden Sun Education Group , announced a 1-for-10 share consolidation to regain compliance with Nasdaq Listing Rule 5550(a)(2). The consolidation will not alter shareholders' percentage interest and aims to increase the minimum bid price per share.

Positive

• The share consolidation aims to help the company comply with Nasdaq Listing Rule 5550(a)(2).
• Shareholders approved the 1-for-10 share consolidation at an extraordinary general meeting.
• The consolidation will not change shareholders' percentage interest in the company.
• Fractional shares resulting from the consolidation will be rounded up to the next whole number.
• Trading of the company's class A ordinary shares will begin on a post-consolidation basis on April 19, 2024.

Negative

• None.

Insights

Financial Analyst

A share consolidation, or reverse stock split, is often employed by firms to boost the trading price of their shares and comply with exchange listing requirements. In the case of Golden Sun Health Technology, the 1-for-10 consolidation will effectively multiply the share price by ten while reducing the number of shares each investor holds by the same factor. The move is strategic, aimed at satisfying Nasdaq's minimum bid price rule, which is a common measure to avoid delisting. This can be advantageous for investors as it might improve the market perception of the stock and prevent potential delisting which could erode investor confidence and liquidity. However, it's also important to recognize that such a corporate action doesn't inherently change the company's market capitalization or its underlying value. For retail investors, it's important to assess the health of the business itself—such as revenue, profit margins and growth prospects—beyond the mechanical effects of a reverse stock split.

Market Research Analyst

The decision to undergo a share consolidation is also a reflection of market sentiment and operational performance. Shareholders should be aware that while the immediate effect is a higher price per share, the market may interpret this move as a cosmetic change if not accompanied by improvements in the company's performance. Historically, companies that perform reverse splits have mixed success in improving their financial standing and investor appeal over the long term. In the case of Golden Sun, which has shifted from education to health technology, the key lies in how well the company can capitalize on the growth potentials in the health sector, innovate and capture market share. Investors should monitor the company's progress in these areas closely, as they will be pivotal in determining whether the consolidation will contribute to a sustainable increase in shareholder value.

Shanghai, China, April 17, 2024 (GLOBE NEWSWIRE) -- Golden Sun Health Technology Group Limited, formerly known as Golden Sun Education Group Limited (the “Company” or “Golden Sun”) (Nasdaq: GSUN), a provider of tutorial services in China, today announced that the shareholders of the Company had approved a proposed 1-for-10 share consolidation of the Company’s ordinary shares (the "Share Consolidation") at an extraordinary general meeting of shareholders (the “Meeting”) held on April 11, 2024, at 8th Floor, Administration Building, 390 East Tiyuhui Road, Hongkou District, Shanghai, China.

At the opening of trading on April 19, 2024, the Company's class A ordinary shares will begin trading on a post-Share Consolidation basis on the Nasdaq Stock Market under the same symbol "GSUN", but under a new CUSIP number of G4013A115. The primary objective of the Share Consolidation is to enable the Company to regain compliance with Nasdaq Listing Rule 5550(a)(2) relating to the minimum bid price per share of the Company's Class A ordinary shares.

As a result of the Share Consolidation, every ten issued and outstanding ordinary shares of a par value of US$0.0005 each will be consolidated into one issued and outstanding ordinary share of a par value of US$0.005 each. No fractional shares will be issued; instead, any fractional shares that would have resulted from the Share Consolidation will be rounded up to the next whole number. The Share Consolidation affects all shareholders uniformly and will not alter any shareholder's percentage interest in the Company's outstanding ordinary shares, except for adjustments that may result from the rounding up of fractional shares.

About Golden Sun Health Technology Group Limited

Established in 1997 and headquartered in Shanghai, China, Golden Sun Health Technology Group Limited, formerly known as Golden Sun Education Group Limited, is a provider of tutorial services in China with over twenty years of experience providing educational services that focus on the development of each of its student’s strengths and potential, and the promotion of life-long skills and interests in learning. Golden Sun has three tutorial centers, one educational company that partners with high schools to offer language classes, and one logistics company that provides logistic and consulting services. The tutorial centers of Golden Sun focus on different groups of targeted students by offering different tutorial programs. For more information, visit the Company’s website at ir.jtyjyjt.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any 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 review other factors that may affect its future results in the Company's annual report and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Golden Sun Health Technology Group Limited
Investor Relations Department
Email: ir@cngsun.com

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

FAQ

What did Golden Sun Health Technology Group announce?

Golden Sun Health Technology Group announced a 1-for-10 share consolidation.

When did shareholders approve the share consolidation?

Shareholders approved the share consolidation at an extraordinary general meeting on April 11, 2024.

Why is the share consolidation being implemented?

The share consolidation is being implemented to help the company comply with Nasdaq Listing Rule 5550(a)(2).

What will happen to fractional shares resulting from the consolidation?

Fractional shares resulting from the consolidation will be rounded up to the next whole number.

When will trading of the company's class A ordinary shares begin on a post-consolidation basis?

Trading of the company's class A ordinary shares will begin on a post-consolidation basis on April 19, 2024.