Linkage Global Inc Announces 10 for 1 Share Consolidation

Rhea-AI Summary

Linkage Global (NASDAQ: LGCB) has announced a 10-for-1 share consolidation effective April 7, 2025, following board approval on March 21, 2025. The consolidation aims to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its Nasdaq listing.

Under the consolidation, every 10 ordinary shares will automatically combine into one share, with no fractional shares being issued. Shareholders entitled to fractional shares will receive one full share instead. The company's shares will continue trading under the symbol 'LGCB' but with a new CUSIP Number G5500B128.

The company's authorized share capital will remain at US$2,500,000, with Class A ordinary shares adjusted to 998,000,000 (par value US$0.0025) and Class B ordinary shares to 2,000,000 (par value US$0.0025).

Positive

• Strategic action to maintain Nasdaq listing status

Negative

• Share consolidation indicates potential non-compliance with Nasdaq listing requirements
• Risk of delisting from Nasdaq if compliance is not regained

Insights

Financial Analyst

Linkage Global's 10-for-1 share consolidation represents a defensive financial maneuver primarily aimed at maintaining its Nasdaq listing. With the current share price at $0.16, the company has fallen well below Nasdaq's minimum bid requirement of $1.00 per share (Rule 5550(a)(2)), triggering this action.

This reverse split mechanically transforms every 10 shares into 1 share at 10x the price, theoretically raising the trading price to approximately $1.58 based on current valuation. While this mathematically preserves the company's $5.18 million market capitalization, it's important to understand what this doesn't do: it doesn't create new value, improve operational performance, or address whatever fundamental issues drove the share price below $1.00 initially.

Reverse splits generally signal financial distress to the market. Companies with strong performance rarely need such measures, and historical data shows that many companies executing reverse splits continue to experience share price deterioration afterward. For current shareholders, while their percentage ownership remains unchanged, the psychological impact and potential market reaction could be concerning.

Without accompanying strategic initiatives or operational improvements, this purely technical compliance measure may only temporarily address the company's listing challenges. The market will be looking for substantive improvements in Linkage Global's business fundamentals to support the artificially elevated share price following this consolidation.

Tokyo Japan, April 02, 2025 (GLOBE NEWSWIRE) -- Linkage Global Inc (the “Company” or “Linkage”), (NASDAQ: LGCB), a cross-border e-commerce integrated services provider headquartered in Japan, today announced that the Company’s board of directors approved on March 21, 2025 that the authorised, issued, and outstanding shares of the Company be consolidated on a 10 for 1 ratio with the marketplace effective date of April 7, 2025.

The objective of the share consolidation is to enable the Company to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintain its listing on Nasdaq.

Beginning with the opening of trading on April 7, 2025, the Company’s Class A ordinary shares will trade on the Nasdaq Capital Market on a split-adjusted basis, under the same symbol “LGCB” but under a new CUSIP Number, G5500B128.

As a result of the share consolidation, each 10 ordinary shares outstanding will automatically combine and convert to one issued and outstanding ordinary share without any action on the part of the shareholders. No fractional shares will be issued to any shareholders in connection with the share consolidation, and each shareholder will be entitled to receive one share of the Company in lieu of the fractional share of that class that would have resulted from the share consolidation.

At the time the share consolidation is effective, the Company’s authorised share capital be changed from US$2,500,000 divided into 9,980,000,000 Class A ordinary shares with a par value of US$0.00025 each and 20,000,000 Class B ordinary shares with a par value of US$0.00025 each to US$2,500,000 divided into 998,000,000 Class A ordinary shares with a par value of US$0.0025 each and 2,000,000 Class B Ordinary Shares with a par value of US$0.0025 each.

About Linkage Global Inc

Linkage Global Inc is a holding company incorporated in the Cayman Islands with no operations of its own. Linkage Cayman conducts its operations through its operating subsidiaries in Japan, Hong Kong, and mainland China. As a cross-border e-commerce integrated services provider headquartered in Japan, through its operating subsidiaries, the Company has developed a comprehensive service system comprised of two lines of business complementary to each other, including (i) cross-border sales and (ii) integrated e-commerce services. For more information, please visit www.linkagecc.com.

Safe Harbor Statement

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 “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “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 annual reports on Form 20-F and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Investor Relations
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742

FAQ

When will LGCB's 10-for-1 share consolidation take effect?

The share consolidation will take effect on April 7, 2025, when LGCB shares begin trading on a split-adjusted basis.

What happens to fractional shares in LGCB's consolidation?

Shareholders entitled to fractional shares will receive one full share of the Company instead of the fractional share.

Why is Linkage Global (LGCB) implementing a share consolidation?

The share consolidation aims to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its Nasdaq listing.

How will LGCB's share structure change after the consolidation?

The authorized capital remains $2.5M, with Class A shares reduced to 998M and Class B shares to 2M, both at $0.0025 par value.