Nano Labs Announces Results of Annual General Meeting of Shareholders

Rhea-AI Summary

Nano Labs (Nasdaq: NA) announced the results of its Annual General Meeting held on October 23, 2024. Shareholders approved three key resolutions: (1) A share consolidation of 10:1, changing share par value from $0.0002 to $0.002, resulting in an authorized capital of $50,000 divided into 25 million ordinary shares; (2) Adoption of new memorandum and articles of association reflecting the share consolidation; and (3) Appointment of MaloneBailey, LLP as independent auditor for FY2024. The share consolidation will take effect on October 29, 2024.

Positive

• None.

Negative

• 10:1 share consolidation may indicate attempt to maintain Nasdaq listing requirements
• Share consolidation could potentially reduce stock liquidity

Insights

Financial Analyst

The approved 10:1 share consolidation for Nano Labs is a significant corporate action that will reduce the number of outstanding shares while proportionally increasing the share price. This move could potentially enhance stock marketability and reduce volatility, though it doesn't fundamentally change the company's market value. The consolidation might help meet Nasdaq's minimum bid price requirements and attract institutional investors who often avoid low-priced stocks.

The appointment of MaloneBailey, LLP as the independent auditor and the adoption of new articles of association are standard corporate governance measures. The share restructuring, which includes specific allocations for Class A and Class B shares, indicates a strategic approach to maintaining control structure while adapting to market conditions.

HANGZHOU, China, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Nano Labs Ltd (Nasdaq: NA) (“we,” the “Company” or “Nano Labs”), a leading fabless integrated circuit design company and product solution provider in China, today announced the results of the Company’s Annual General Meeting (“AGM”) held at 10 A.M. on October 23, 2024, Beijing time (10 P.M., October 22, 2024, U.S. Eastern time). The proposals submitted for shareholder approval at the AGM have been approved. Specifically, the shareholders have passed the following resolutions:

(1) to effect a share consolidation of every ten shares with a par value of US$0.0002 each in the Company’s issued and unissued share capital into one share with a par value of US$0.002 (the “Share Consolidation”), so that immediately following the Share Consolidation and the share re-designation, the authorized share capital of the Company shall be US$50,000 divided into 25,000,000 ordinary shares of par value of US$0.002 each, comprising (i) 12,141,093 Class A ordinary shares of par value of US$0.002 each, (ii) 2,858,908 Class B ordinary shares of par value of US$0.002 each, and (iii) 9,999,999 shares of a par value of US$0.002 each of such class or classes (however designated) as the board of directors of the Company may determine in accordance with the Company’s New M&A (as defined below).

(2) to amend the Company’s memorandum and articles of association currently in effect by the adoption of a new memorandum and articles of association to reflect the Share Consolidation (after the amendment, the “New M&A”); and

(3) to approve the appointment of MaloneBailey, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2024.

The Share Consolidation will be effective from 5 P.M. on October 29, 2024, Eastern time.

About Nano Labs Ltd

Nano Labs Ltd is a leading fabless integrated circuit (“IC”) design company and product solution provider in China. Nano Labs is committed to the development of high throughput computing (“HTC”) chips, high performance computing (“HPC”) chips, distributed computing and storage solutions, smart network interface cards (“NICs”) vision computing chips and distributed rendering. Nano Labs has built a comprehensive flow processing unit (“FPU”) architecture which offers solution that integrates the features of both HTC and HPC. Nano Lab's Cuckoo series are one of the first near-memory HTC chips available in the market*. For more information, please visit the Company’s website at: ir.nano.cn.

* According to an industry report prepared by Frost & Sullivan.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s plan to appeal the Staff’s determination, which can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor inquiries, please contact:

Nano Labs Ltd
ir@nano.cn

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

When will Nano Labs (NA) share consolidation take effect?

Nano Labs' 10:1 share consolidation will take effect from 5 P.M. Eastern time on October 29, 2024.

What is the new share structure for Nano Labs (NA) after consolidation?

After consolidation, Nano Labs will have 25 million authorized ordinary shares with $0.002 par value, including 12.14M Class A shares, 2.86M Class B shares, and 10M shares as determined by the board.

Who is Nano Labs' (NA) new auditor for fiscal year 2024?

MaloneBailey, LLP was appointed as Nano Labs' independent registered public accounting firm for the fiscal year ending December 31, 2024.