Visionary Holdings Inc. Announces Share Consolidation of Ordinary Shares
Visionary Holdings announces a 1-for-15 share consolidation to increase its per share trading price and maintain its Nasdaq listing. Effective from May 29, 2024, the consolidation will reduce the number of ordinary shares from 55,368,883 to approximately 3,691,259. Fractional shares will be rounded up to the nearest whole share. Post-consolidation trading will begin on May 29, 2024, under the same ticker, GV. This move aims to help the company regain compliance with Nasdaq Listing Rules.
- The share consolidation is intended to increase the per share trading price.
- Effective May 29, 2024, the company's shares will continue to trade under the symbol GV.
- The adjustment aims to help maintain the company's Nasdaq listing.
- Fractional shares resulting from the consolidation will be rounded up, benefiting shareholders.
- The share consolidation will reduce the number of outstanding shares from 55,368,883 to approximately 3,691,259, potentially indicating a dilution of value per share.
- The need for share consolidation suggests the company's stock price was too low to meet Nasdaq's listing requirements.
Insights
The share consolidation announced by Visionary Holdings Inc. is a strategic move aimed at increasing its per-share trading price, important for maintaining Nasdaq listing compliance. By consolidating shares at a ratio of 1-for-15, the outstanding shares will reduce dramatically, boosting the share price proportionately. For retail investors, this means fewer shares but potentially a higher market price per share. However, it's important to note that the total value of holdings doesn't change with the consolidation itself.
In the short term, this could lead to increased volatility as the market adjusts to the new share price. In the long term, maintaining Nasdaq listing could provide stability and possibly attract more institutional investors, which is a positive sign. However, if the underlying business performance doesn't improve, this move might only offer a temporary solution.
Investors should also be aware of the psychological impact of a higher share price, which can sometimes attract more attention from the market, albeit without any fundamental change in the company's value.
From a market perspective, the share consolidation is a tactic often used to prevent delisting and improve the company's image in the eyes of potential investors. The change in CUSIP number signals this adjustment to the market clearly. While it doesn't alter the core metrics of the company's performance, it can make shares appear more valuable by reducing the number of shares available.
Retail investors should understand that this does not change the company's market capitalization or its financial health. It is merely a cosmetic change to meet regulatory requirements. The actual impact on market perception and trading volume will depend on investor sentiment and the company's subsequent financial performance.
Investors might also consider the broader market conditions and sector trends in education technology and life sciences, as these will ultimately influence the stock's long-term trajectory.
The Company's ordinary shares will continue to be traded on the Nasdaq Capital Market ("Nasdaq") under the symbol "GV" and will begin trading on a post-consolidation adjusted basis when the market opens on May 29, 2024. The CUSIP number for the Company's ordinary shares following the Share Consolidation will be 92838F200.
The Share Consolidation is primarily intended to increase the Company's per share trading price in order to maintain its listing on Nasdaq. We believe that the proposed Share Consolidation will assist the Company in regaining compliance under the Nasdaq Listing Rules.
The Share Consolidation will reduce the issued and outstanding number of ordinary shares of the Company from 55,368,883 shares to approximately 3,691,259 shares.
Shareholders holding their shares in book-entry form or in "street name" (through a broker, bank or other holder of record) will have their shares automatically adjusted to reflect the Share Consolidation. Shareholders of record may direct questions concerning the Share Consolidation to the Company's transfer agent, Issuer Direct Corporation.
About Visionary Holdings Inc.
Visionary Holdings Inc. headquartered in
Forward-Looking Statements
All statements other than statements of historical fact 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 "believes," "expects," "anticipates," "estimates," "intends," "would," "continue," "should," "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 reports and in its other filings with the SEC.
For more information, please contact:
Visionary Holdings Inc.
Investor Relations Department
Email: ir@farvision.ca
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SOURCE Visionary Holdings Inc.
FAQ
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