Kaixin Holdings Announces Share Consolidation

Rhea-AI Summary

Kaixin Holdings (NASDAQ: KXIN) announced a 1-for-60 share consolidation effective October 25, 2024. The company's ordinary shares will continue trading on Nasdaq under the symbol 'KXIN' with a new CUSIP number G5223X159. Every sixty shares will be automatically consolidated into one ordinary share, with fractional shares rounded up. Outstanding warrants and equity rights will be adjusted proportionally. Shareholders with shares in electronic form at brokerage firms don't need to take action as changes will be reflected automatically in their accounts.

Positive

• None.

Negative

• Share consolidation (reverse split) typically indicates stock price concerns
• 1:60 ratio suggests significant share price decline necessitating consolidation
• Potential risk of not meeting Nasdaq listing requirements

Insights

Financial Analyst

This share consolidation (reverse split) is a significant development that warrants investor attention. The 1-for-60 ratio is notably steep, suggesting serious concerns about maintaining NASDAQ listing requirements. The consolidation will reduce the number of outstanding shares by a factor of 60, artificially boosting the share price but not changing the company's market value.

This aggressive reverse split often indicates underlying financial challenges. For existing shareholders, while their ownership percentage remains unchanged, the reduced float could lead to increased volatility and potentially worse liquidity. The timing and ratio suggest this is likely a desperate measure to maintain NASDAQ compliance, which requires maintaining a minimum bid price of $1 per share.

HANGZHOU, China, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Kaixin Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that it will effect a share consolidation of its ordinary shares at a ratio of 1-for-60, effective on October 25, 2024 (the “Share Consolidation”). The Company’s ordinary shares are expected to begin trading on a post-consolidation basis at the open of the market session on October 25, 2024. Upon the market opening on October 25, 2024, the Company’s ordinary shares will continue to be traded on The Nasdaq Capital Market under the symbol “KXIN” with the new CUSIP number G5223X159.

As a result of the Share Consolidation, every sixty shares of the Company’s ordinary shares will be automatically consolidated into one ordinary share. Outstanding warrants and other outstanding equity rights will be proportionately adjusted to reflect the Share Consolidation. No fractional shares will be issued in connection with the Share Consolidation, and in the event that a shareholder would otherwise be entitled to receive a fractional share upon the Share Consolidation, the number of Shares to be received by such shareholder will be rounded up to one ordinary share in lieu of the fractional share that would have resulted from the Share Consolidation. Shareholders who are holding their shares in electronic form at brokerage firms do not need to take any action, as the effect of the Share Consolidation will automatically be reflected in their brokerage accounts.

About Kaixin Holdings

Kaixin Holdings is a leading new energy vehicle manufacturer in China, equipped with professional teams with rich experience in R&D, production, marketing, and production facilities with the capacity for stamping, welding, painting, and assembly operations. Kaixin produces multiple electric passenger and logistics vehicle models. The Company is committed to building up a competitive international market position that integrates online and offline presence and diversified business operations. Leveraging the expertise of its professional teams and driven by the inspiration for innovation and sustainability, Kaixin aims to contribute to achieving the goals of “peak carbon emissions and carbon neutrality”.

Safe Harbor Statement

This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or other similar expressions. Statements that are not historical facts, including statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this announcement and in the attachments is as of the date of this announcement, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Kaixin Holdings

Investor Relations

Email: ir@kaixin.com

FAQ

What is the share consolidation ratio announced by Kaixin Holdings (KXIN)?

Kaixin Holdings announced a 1-for-60 share consolidation, meaning every sixty shares will be consolidated into one ordinary share, effective October 25, 2024.

When will KXIN's share consolidation take effect?

The share consolidation will take effect on October 25, 2024, with shares beginning to trade on a post-consolidation basis at market open.

Will KXIN shareholders need to take any action for the share consolidation?

Shareholders holding shares in electronic form at brokerage firms do not need to take any action, as the consolidation will be automatically reflected in their brokerage accounts.

What happens to fractional shares in KXIN's consolidation?

Fractional shares resulting from the consolidation will be rounded up to one ordinary share, with no fractional shares being issued.