Jiuzi Holdings Inc. Announces 1-For-13 Reverse Share Split
Jiuzi Holdings, a leading NEV dealership group in China, announced a 1-for-13 reverse share split of its ordinary shares, effective July 3, 2024. This move aims to meet the Nasdaq's $1.00 minimum bid price requirement. Post-split, shares will trade under the symbol 'JZXN' with a new CUSIP number, G51400136. The reverse split will reduce outstanding shares from approximately 135.3 million to 10.4 million. No fractional shares will be issued; any fractional interests will be rounded up. Shareholders approved this action on February 15, 2024. Transhare will manage the process.
- The reverse share split helps Jiuzi Holdings regain compliance with Nasdaq's minimum bid price requirement.
- The reverse split reduces the total number of outstanding shares from approximately 135.3 million to 10.4 million.
- None.
Insights
Jiuzi Holdings Inc. has announced a 1-for-13 reverse share split, which will reduce the number of outstanding shares from approximately 135.3 million to approximately 10.4 million. This move is primarily aimed at regaining compliance with Nasdaq's minimum bid price requirement of
Reverse share splits are often a sign that a company is attempting to boost its stock price by reducing the number of shares available in the market. While this might create an immediate illusion of increased value per share, it doesn't fundamentally change the company's market value or improve the underlying business operations.
For retail investors, this reverse split means that any shares they hold in Jiuzi Holdings will be consolidated, theoretically increasing the stock price proportionally. However, the company's overall market capitalization remains the same. Investors need to be cautious, as reverse splits can sometimes signal deeper issues with a company's financial health, particularly if they are conducted to meet listing requirements rather than reflecting organic growth.
In the short-term, the adjusted share price might provide a temporary boost. However, without improvements in operational performance, the long-term benefits of this action are uncertain and investors should closely monitor subsequent earnings reports and business developments.
The reverse share split by Jiuzi Holdings is a clear attempt to stay in compliance with Nasdaq's listing requirements. Typically, a reverse split reduces the number of shares and increases the price per share proportionally, without changing the overall market capitalization.
From a market perspective, this action might make the stock more attractive to institutional investors who often have policies against purchasing low-priced stocks. Additionally, a higher share price can potentially improve the company's image among investors, signaling a more stable investment.
Market sentiment towards reverse splits can be varied. In some instances, post-split shares may see increased volatility as market participants adjust to the new pricing. Retail investors should remain aware of this potential volatility and consider the company's overall performance and market conditions before making investment decisions.
It's also worth noting that reverse splits can sometimes be viewed negatively by the market, especially if they are perceived as a last-ditch effort to meet listing standards rather than reflecting genuine company growth. Investors should keep an eye on Jiuzi Holdings' performance in the coming quarters to see if this move is part of a broader strategy to enhance shareholder value or simply a temporary fix.
HANGZHOU, China, June 28, 2024 (GLOBE NEWSWIRE) -- Jiuzi Holdings, Inc. (NASDAQ: JZXN; the "Company"), a leading new energy vehicle (NEV) dealership group under the brand name "Jiuzi" in China, today announced that it will effect a reverse share split of its outstanding ordinary shares, par value
Our Ordinary Shares will begin trading on a reverse share split-adjusted basis at the opening of The Nasdaq Capital Market (“Nasdaq”) on or around Tuesday, July 3, 2024. Following the reverse share split, the Ordinary Shares will have a par value of
No fractional shares will be issued in connection with the reverse share split and all such fractional interests will be rounded up to the nearest whole number of Ordinary Shares. In addition, the reverse share split will apply to the Ordinary Shares issuable upon the exercise of the Company’s outstanding derivative securities, with proportionate adjustments to be made to the exercise prices and number of derivates thereof and under the Company’s equity incentive plans.
The reverse share split will reduce the number of issued and outstanding shares of the Company’s Ordinary Shares from approximately 135.3 million to approximately 10.4 million.
On February 15, 2024, the shareholders of the Company approved the Fourth Amended and Restated Memorandum and Articles of Association of the Company to effect a reverse share split of the Ordinary Shares, at a ratio of 1-for-13.
Transhare Corporation is acting as the exchange agent and paying agent for the reverse share split. Shareholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse share split.
Transhare Corporation will provide instructions to any shareholders with certificates regarding the process in connection with the exchange of pre-reverse share split share certificates for ownership in book-entry form or share certificates on a post-reverse share split basis. Shareholders are encouraged to contact their bank, broker or custodian with any procedural questions.
About Jiuzi Holdings, Inc.
Jiuzi Holdings, Inc., headquartered in Hangzhou, China, and established in 2017, franchises and operates retail stores under the brand name "Jiuzi" to sell New Energy Vehicles ("NEVs") in third and fourth-tier cities in China. The Company mainly sells battery-operated electric vehicles and sources NEVs through more than twenty NEV manufacturers. It has 51 operating franchise stores and one company-owned store. For more information, visit the Company's website at http://www.zjjzxny.cn/.
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. They are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Offering will be completed. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent events, 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. 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 registration statement and its other filings with the SEC.
For more information, please contact:
Stephen Tong
Email: jiuzi@mana-ir.com
SOURCE Jiuzi Holdings, Inc.
FAQ
What is the effective date for Jiuzi Holdings' (JZXN) reverse share split?
What is the new share ratio for Jiuzi Holdings' (JZXN) reverse share split?
Why is Jiuzi Holdings (JZXN) conducting a reverse share split?
What will happen to fractional shares in Jiuzi Holdings' (JZXN) reverse share split?
How many shares will Jiuzi Holdings (JZXN) have post-reverse share split?
