HWH International Inc. Announces Reverse Stock Split
HWH International (NASDAQ: HWH) has announced a 1-for-5 reverse stock split effective February 24, 2025, at 9:00 a.m. Eastern Time. The primary purpose is to maintain Nasdaq Capital Market listing compliance by meeting minimum bid price requirements.
The reverse split will automatically convert every 5 shares of common stock into one new share, trading under the same symbol 'HWH' with a new CUSIP number 44852G309. The split will not affect stockholders' rights, preferences, authorized shares, or par value. Proportional adjustments will be made to warrant exercise prices and underlying shares.
Stockholders who would hold fractional shares post-split will receive cash payments based on the closing price on the effective date. The measure was approved by stockholders and the Board of Directors on January 16, 2025.
HWH International (NASDAQ: HWH) ha annunciato un raggruppamento azionario inverso 1-per-5 che entrerà in vigore il 24 febbraio 2025, alle 9:00 ora orientale. Lo scopo principale è mantenere la conformità con i requisiti di quotazione del Nasdaq Capital Market rispettando i requisiti di prezzo minimo delle offerte.
Il raggruppamento convertirà automaticamente ogni 5 azioni ordinarie in una nuova azione, che sarà scambiata con lo stesso simbolo 'HWH' e un nuovo numero CUSIP 44852G309. Il raggruppamento non influirà sui diritti, le preferenze, le azioni autorizzate o il valore nominale degli azionisti. Saranno effettuati aggiustamenti proporzionali ai prezzi di esercizio delle opzioni e alle azioni sottostanti.
Gli azionisti che si troveranno a detenere azioni frazionarie dopo il raggruppamento riceveranno pagamenti in contante basati sul prezzo di chiusura alla data di effetto. La misura è stata approvata dagli azionisti e dal Consiglio di Amministrazione il 16 gennaio 2025.
HWH International (NASDAQ: HWH) ha anunciado un split inverso de acciones 1 por 5 que será efectivo el 24 de febrero de 2025, a las 9:00 a.m. hora del Este. El propósito principal es mantener el cumplimiento de la cotización en el Nasdaq Capital Market al satisfacer los requisitos de precio mínimo de oferta.
El split convertirá automáticamente cada 5 acciones ordinarias en una nueva acción, que se negociará bajo el mismo símbolo 'HWH' con un nuevo número CUSIP 44852G309. El split no afectará los derechos, preferencias, acciones autorizadas o valor nominal de los accionistas. Se realizarán ajustes proporcionales a los precios de ejercicio de las opciones y a las acciones subyacentes.
Los accionistas que tengan acciones fraccionarias después del split recibirán pagos en efectivo basados en el precio de cierre en la fecha efectiva. La medida fue aprobada por los accionistas y la Junta Directiva el 16 de enero de 2025.
HWH International (NASDAQ: HWH)는 2025년 2월 24일 오전 9시 동부 표준시부터 시행되는 5대 1 비율의 주식 환매를 발표했습니다. 주된 목적은 최소 입찰 가격 요구 사항을 충족하여 Nasdaq 자본 시장 상장 준수를 유지하는 것입니다.
비율 환매는 자동으로 5주를 1주의 새로운 주식으로 전환하며, 동일한 기호 'HWH'로 거래되고 새로운 CUSIP 번호 44852G309가 부여됩니다. 이번 분할은 주주들의 권리, 선호도, 승인된 주식 또는 액면가에 영향을 미치지 않습니다. 옵션 행사 가격 및 기초 주식에 대한 비례 조정이 이루어질 것입니다.
분할 후 부분 주식을 보유한 주주들은 발효일의 종가를 기준으로 현금 지급을 받게 됩니다. 이 조치는 2025년 1월 16일에 주주와 이사회에 의해 승인되었습니다.
HWH International (NASDAQ: HWH) a annoncé un rachat d'actions inversé 1 pour 5 qui prendra effet le 24 février 2025 à 9h00, heure de l'Est. Le principal objectif est de maintenir la conformité avec les exigences de cotation du Nasdaq Capital Market en respectant les exigences de prix minimum des offres.
Le rachat inversé convertira automatiquement chaque 5 actions ordinaires en une nouvelle action, qui sera négociée sous le même symbole 'HWH' avec un nouveau numéro CUSIP 44852G309. Le rachat n'affectera pas les droits, préférences, actions autorisées ou valeur nominale des actionnaires. Des ajustements proportionnels seront effectués sur les prix d'exercice des options et des actions sous-jacentes.
Les actionnaires détenant des actions fractionnaires après le rachat recevront des paiements en espèces basés sur le prix de clôture à la date d'effet. La mesure a été approuvée par les actionnaires et le Conseil d'Administration le 16 janvier 2025.
HWH International (NASDAQ: HWH) hat einen 1-für-5 Rückwärtssplitt angekündigt, der am 24. Februar 2025 um 9:00 Uhr Eastern Time in Kraft treten wird. Der Hauptzweck besteht darin, die Einhaltung der Nasdaq Capital Market-Listing-Anforderungen durch die Erfüllung der Mindestgebotsanforderungen aufrechtzuerhalten.
Der Rückwärtssplitt wird automatisch jede 5 Aktien der Stammaktien in eine neue Aktie umwandeln, die unter dem gleichen Symbol 'HWH' mit einer neuen CUSIP-Nummer 44852G309 gehandelt wird. Der Splitt hat keine Auswirkungen auf die Rechte, Vorzüge, genehmigten Aktien oder den Nennwert der Aktionäre. Proportionale Anpassungen werden bei den Ausübungspreisen von Warrants und den zugrunde liegenden Aktien vorgenommen.
Aktionäre, die nach dem Splitt Bruchstücke von Aktien halten, erhalten Barzahlungen basierend auf dem Schlusskurs am effektiven Datum. Die Maßnahme wurde am 16. Januar 2025 von den Aktionären und dem Vorstand genehmigt.
- Maintains Nasdaq listing compliance through bid price adjustment
- Stockholder and Board approval already secured
- Indicates company struggling to maintain minimum share price requirements
- Potential forced selling for fractional shareholders
- Share consolidation may reduce stock liquidity
Insights
This 1-for-5 reverse stock split represents a critical juncture for HWH International, primarily driven by the need to maintain Nasdaq listing compliance. With the current share price at
While reverse splits are technically neutral events that don't directly affect company value, they often carry significant implications:
- Historical data shows that companies executing reverse splits typically underperform the market by
50% in the following year, though this isn't universally true. - The reduced share count could impact trading liquidity, potentially leading to wider bid-ask spreads and increased volatility.
- Institutional investors often view reverse splits skeptically, as they're frequently associated with struggling companies attempting to maintain exchange listings rather than addressing fundamental business challenges.
The cash settlement of fractional shares could force some smaller investors to partially liquidate their positions, potentially creating temporary selling pressure. Moreover, while the split helps address the immediate listing compliance issue, it doesn't resolve the underlying factors that led to the share price decline.
The timing of this action, with shareholder approval already secured and implementation set for February 24, suggests urgency in maintaining the Nasdaq listing. This compliance-driven move typically indicates that management views maintaining exchange listing as important for accessing capital markets and maintaining institutional investor interest.
BETHESDA, MD, Feb. 20, 2025 (GLOBE NEWSWIRE) -- HWH International Inc. (the “Company”) (NASDAQ: HWH), a purpose-driven lifestyle company, today announced a 1-for-5 reverse stock split of the Company’s common stock to become effective at 9:00 a.m. (Eastern Time) on February 24, 2025. The Company’s common stock is expected to begin trading on a split-adjusted basis when the markets open on February 24, 2025, under the existing trading symbol “HWH.”
The reverse stock split is primarily intended to bring the Company into compliance with the minimum bid price requirements for maintaining its listing on the Nasdaq Capital Market. The new CUSIP number following the reverse stock split will be 44852G309.
As a result of the reverse stock split, every 5 shares of the Company’s common stock issued and outstanding or held by the Company as treasury stock will be automatically reclassified into one new share of common stock. The reverse stock split will not modify any rights or preferences of the shares of the Company’s common stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s warrants. The common stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not affect the number of authorized shares of common stock or the par value of the common stock. The reverse stock split was approved by the majority of the Company’s stockholders by written consent and by the Company’s Board of Directors on January 16, 2025.
No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise have held a fractional share after giving effect to the reverse stock split will instead receive a cash payment in an amount equal to the fraction of a share of common stock to which the stockholder would have otherwise been entitled, multiplied by the closing price of the Company’s common stock as reported on The Nasdaq Stock Market on the date of the effectiveness of the reverse stock split.
Additional information about the reverse stock split can be found in the Company’s definitive information statement filed with the Securities and Exchange Commission (the “SEC”) on January 28, 2025, which is available free of charge at the SEC’s website, www.sec.gov, and on the Company’s website at www.hwhintl.com.
About HWH International Inc.
HWH International Inc. is a purpose-driven lifestyle company encompassing differentiated offerings from four core pillars: Hapi Marketplace, Hapi Cafe, Hapi Travel and Hapi Wealth Builder. The Company develops new pathways to help people in their pursuit of Health, Wealth and Happiness.
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 “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions.
Given these uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. We do not undertake any obligation to update any such statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.
For investor and media inquiries, please contact:
HWH International Inc.
4800 Montgomery Lane, Suite 210
Bethesda, MD 20814
301-971-3955
contact@hwhintl.com
FAQ
When will HWH International's 1-for-5 reverse stock split take effect?
What happens to fractional shares after HWH's reverse split?
Why is HWH International implementing a reverse stock split?
Will HWH's reverse split affect the number of authorized shares or par value?
What adjustments will be made to HWH's existing warrants?
