Haoxi Health Technology Limited Announces 1-for-25 Reverse Share Split
Haoxi Health Technology (HAO) announced a 1-for-25 reverse share split, approved by shareholders on January 10, 2025, effective January 27, 2025. The split will reduce outstanding Class A ordinary shares from 53.29 million to 2.13 million and Class B ordinary shares from 17.27 million to 0.69 million.
The company's shares will continue trading on the Nasdaq Capital Market under the symbol 'HAO' with a new CUSIP number G4290F118. The par value will be adjusted to $0.0025 per share. Fractional shares will be rounded up to the nearest whole share. While the stock price is expected to trade at approximately 25 times the pre-split price, the company cannot guarantee sustained price levels.
Haoxi Health Technology (HAO) ha annunciato una fusione inversa delle azioni 1-per-25, approvata dagli azionisti il 10 gennaio 2025, con efficacia a partire dal 27 gennaio 2025. Questa operazione ridurrà le azioni ordinarie di Classe A in circolazione da 53,29 milioni a 2,13 milioni e le azioni ordinarie di Classe B da 17,27 milioni a 0,69 milioni.
Le azioni della società continueranno a essere negoziate sul Nasdaq Capital Market con il simbolo 'HAO' e un nuovo numero CUSIP G4290F118. Il valore nominale sarà regolato a $0,0025 per azione. Le azioni frazionarie saranno arrotondate all'azione intera più vicina. Sebbene si prevede che il prezzo delle azioni sarà circa 25 volte superiore al prezzo prima della fusione, la società non può garantire livelli di prezzo sostenuti.
Haoxi Health Technology (HAO) anunció una división inversa de acciones de 1 por 25, aprobada por los accionistas el 10 de enero de 2025, que entrará en vigencia el 27 de enero de 2025. Esta división reducirá las acciones ordinarias de Clase A de 53,29 millones a 2,13 millones y las acciones ordinarias de Clase B de 17,27 millones a 0,69 millones.
Las acciones de la compañía continuarán cotizando en el Nasdaq Capital Market bajo el símbolo 'HAO' con un nuevo número CUSIP G4290F118. El valor nominal se ajustará a $0,0025 por acción. Las acciones fraccionarias se redondearán a la acción entera más cercana. Si bien se espera que el precio de la acción cotice aproximadamente 25 veces el precio anterior a la división, la compañía no puede garantizar niveles de precios sostenidos.
하오시 헬스 테크놀로지 (HAO)는 2025년 1월 10일 주주가 승인한 1대 25 역분할을 발표했으며, 이는 2025년 1월 27일부터 시행됩니다. 이 분할로 인해 A 클래스 보통주 주식 수는 5,329만 주에서 213만 주로, B 클래스 보통주는 1,727만 주에서 69만 주로 줄어듭니다.
회사의 주식은 나스닥 자본 시장에서 'HAO' 심볼로 계속 거래되며, 새로운 CUSIP 번호는 G4290F118입니다. 액면가는 주당 $0.0025로 조정됩니다. 분할된 주식은 가장 가까운 정수 주식으로 반올림됩니다. 주식 가격이 분할 전 가격의 약 25배로 거래될 것으로 예상되지만, 회사는 지속적인 가격 수준을 보장할 수 없습니다.
Haoxi Health Technology (HAO) a annoncé un regroupement d'actions inversé au ratio de 1 pour 25, approuvé par les actionnaires le 10 janvier 2025, et entrant en vigueur le 27 janvier 2025. Ce regroupement réduira le nombre d'actions ordinaires de classe A de 53,29 millions à 2,13 millions et les actions ordinaires de classe B de 17,27 millions à 0,69 million.
Les actions de l'entreprise continueront d'être échangées sur le Nasdaq Capital Market sous le symbole 'HAO' avec un nouveau numéro CUSIP G4290F118. La valeur nominale sera ajustée à 0,0025 $ par action. Les actions fractionnaires seront arrondies à l'action entière la plus proche. Bien qu'on s'attende à ce que le prix de l'action se négocie à environ 25 fois le prix avant le regroupement, l'entreprise ne peut garantir des niveaux de prix soutenus.
Haoxi Health Technology (HAO) hat eine Reverse-Aktiensplit von 1 zu 25 angekündigt, die von den Aktionären am 10. Januar 2025 genehmigt wurde und am 27. Januar 2025 wirksam wird. Dieser Split wird die ausstehenden Stammaktien der Klasse A von 53,29 Millionen auf 2,13 Millionen und die Stammaktien der Klasse B von 17,27 Millionen auf 0,69 Millionen reduzieren.
Die Aktien des Unternehmens werden weiterhin unter dem Symbol 'HAO' am Nasdaq Capital Market gehandelt, mit einer neuen CUSIP-Nummer G4290F118. Der Nennwert wird auf $0,0025 pro Aktie angepasst. Bruchteile von Aktien werden auf die nächstgelegene volle Aktie aufgerundet. Während erwartet wird, dass der Aktienpreis etwa 25-mal so hoch wie der Preis vor dem Split gehandelt wird, kann das Unternehmen keine nachhaltigen Preisniveaus garantieren.
- Potential compliance with Nasdaq listing requirements through higher share price
- No shareholder dilution as this is a technical adjustment
- No guarantee of maintaining higher post-split share price
- Reduced market liquidity due to fewer outstanding shares
Insights
This reverse stock split announcement carries significant implications for HAO and its shareholders. The 1-for-25 consolidation represents a substantial reduction in outstanding shares, with Class A shares decreasing from 53.29M to 2.13M and Class B shares from 17.27M to 0.69M. While mathematically neutral, this corporate action often signals deeper underlying challenges.
The timing and ratio choice are particularly noteworthy. A 1-for-25 ratio is relatively aggressive compared to more common 1-for-2 or 1-for-10 splits, suggesting urgent pressure to boost the share price. Given HAO's current price of
Key considerations for investors include:
- The post-split theoretical price would be approximately
$3.365 , though market dynamics often lead to different outcomes - The rounding up of fractional shares could create minor dilution
- Historical patterns show that aggressive reverse splits often precede continued price deterioration
- The adjusted par value of
$0.0025 per share maintains proportional equity structure
While management frames this as a technical adjustment, the aggressive ratio and current market position suggest this move is more defensive than strategic. Chinese companies listed on U.S. exchanges have increasingly turned to reverse splits amid broader market pressures and regulatory scrutiny. Investors should closely monitor post-split trading patterns and any subsequent corporate actions, as reverse splits of this magnitude often indicate fundamental business challenges rather than purely technical considerations.
BEIJING, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Haoxi Health Technology Limited (the “Company” or “HAO”), an online marketing solution provider headquartered in Beijing, China, today announced that it has resolved to effect a reverse share split of the Company’s ordinary shares, with the split ratio set at 1-for-25 (the “Reverse Share Split”). The Reverse Share Split was approved by the Company’s shareholders at an annual general meeting of shareholders held on January 10, 2025. The Company’s Class A ordinary shares will begin trading on an adjusted basis on the Nasdaq Capital Market, reflecting the Reverse Share Split, when the market opens on January 27, 2025, under the existing ticker symbol “HAO.” The new CUSIP number for the Company’s Class A ordinary shares will be G4290F118.
Upon the effectiveness of the Reverse Share Split, every twenty-five shares of the Company’s issued and outstanding Class A ordinary shares as of the effective date will automatically be combined into one Class A ordinary share, and every twenty-five shares of the Company’s issued and outstanding Class B ordinary shares as of the effective date will automatically be combined into one Class B ordinary share. This adjustment will reduce the total number of outstanding Class A ordinary shares of the Company from approximately 53.29 million to approximately 2.13 million, and the total number of outstanding Class B ordinary shares of the Company from approximately 17.27 million to approximately 0.69 million.
In conjunction with the Reverse Share Split, the Company also amended its Articles and Memorandum of Association to proportionately reduce the number of authorized shares for issuance and to adjust the par value of the post-reverse share split ordinary shares to
No fractional shares will be issued; instead, shareholders who would otherwise be entitled to a fractional share will have their entitlement rounded up to the nearest whole share.
The Reverse Split is expected to lead the Company’s Class A ordinary shares to trade at approximately twenty-five times the price per share at which it trades prior to the effectiveness of the Reverse Split. The Company, however, cannot assure that the price of its Class A ordinary shares after the Reverse Split will reflect the 1 for 25 Reverse Split ratio, that the price per share following the effective time of the Reverse Split will be maintained for any period of time, or that the price will remain above the pre-split trading price.
Further details regarding the reverse share split and the associated changes to the Company’s share capital can be found in the Company’s notice of 2025 annual general meeting, filed with the Securities and Exchange Commission on December 19, 2024.
About Haoxi Health Technology Limited
Haoxi Health Technology Limited is an online marketing solution provider headquartered in Beijing, China, specializing in serving healthcare industry advertiser clients. The Company’s growth is driven by the rise of news feed ads and the rapid development of the healthcare sector. The Company offers one-stop online marketing solutions, especially in online short video marketing, helping advertisers acquire and retain customers on popular platforms in China, such as Toutiao, Douyin, WeChat, and Sina Weibo. The Company is dedicated to reducing costs, increasing efficiency, and providing easy online marketing solutions to advertisers. For more information, please visit: http://ir.haoximedia.com.
Forward-Looking 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, 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 forecast on market trends; the Company's future business development; the demand for and market acceptance for new services; expectation to receive customer orders for new services; the anticipated timing for the marketing and sales of new solutions; changes in technology; the Company's ability to attract and retain skilled professionals; client concentration; and general economic conditions affecting the Company's industry and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. 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.
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Janice Wang, Managing Partner
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FAQ
When will HAO's 1-for-25 reverse stock split take effect?
How many shares will HAO have outstanding after the reverse split?
What happens to fractional shares in HAO's reverse split?
What will be HAO's new par value per share after the reverse split?
Will HAO's stock symbol change after the reverse split?
