China SXT Pharmaceuticals, Inc. Announces Share Consolidation
China SXT Pharmaceuticals (SXTC) has announced a 1-for-8 share consolidation effective February 25, 2025, aimed at regaining compliance with Nasdaq's minimum bid price requirement of $1.00 per share. The company must maintain a closing bid price above $1.00 for at least ten consecutive trading days by April 1, 2025, to maintain its Nasdaq listing.
The consolidation means every eight ordinary shares will automatically combine into one share, with fractional shares rounded up. All outstanding stock options, warrants, and other rights will be adjusted proportionately. The company will continue trading under the symbol 'SXTC' with a new CUSIP number G2161P157.
Failure to meet the minimum bid requirement could result in delisting from Nasdaq, potentially causing significant adverse effects on the company's securities' value and liquidity.
China SXT Pharmaceuticals (SXTC) ha annunciato una consolidazione delle azioni in un rapporto di 1 a 8, che entrerà in vigore il 25 febbraio 2025, con l'obiettivo di ristabilire la conformità con il requisito di prezzo minimo di offerta di Nasdaq di $1,00 per azione. L'azienda deve mantenere un prezzo di chiusura superiore a $1,00 per almeno dieci giorni di negoziazione consecutivi entro il 1 aprile 2025, per mantenere la sua quotazione su Nasdaq.
La consolidazione significa che ogni otto azioni ordinarie si uniranno automaticamente in un'azione, con le azioni frazionarie arrotondate per eccesso. Tutte le opzioni azionarie, i warrant e altri diritti in circolazione saranno adeguati proporzionalmente. L'azienda continuerà a essere quotata con il simbolo 'SXTC' e un nuovo numero CUSIP G2161P157.
Il mancato rispetto del requisito di prezzo minimo potrebbe comportare la cancellazione dalla Nasdaq, con potenziali effetti negativi significativi sul valore e sulla liquidità dei titoli dell'azienda.
China SXT Pharmaceuticals (SXTC) ha anunciado una consolidación de acciones en una proporción de 1 por 8, que entrará en vigor el 25 de febrero de 2025, con el objetivo de recuperar el cumplimiento del requisito de precio mínimo de oferta de Nasdaq de $1.00 por acción. La empresa debe mantener un precio de cierre superior a $1.00 durante al menos diez días de negociación consecutivos antes del 1 de abril de 2025, para mantener su cotización en Nasdaq.
La consolidación significa que cada ocho acciones ordinarias se combinarán automáticamente en una acción, redondeando las acciones fraccionarias hacia arriba. Todas las opciones sobre acciones, garantías y otros derechos en circulación se ajustarán proporcionalmente. La empresa continuará cotizando bajo el símbolo 'SXTC' con un nuevo número CUSIP G2161P157.
No cumplir con el requisito de precio mínimo podría resultar en la exclusión de Nasdaq, lo que podría causar efectos adversos significativos en el valor y la liquidez de los valores de la empresa.
China SXT Pharmaceuticals (SXTC)는 2025년 2월 25일부터 유효한 1대 8의 주식 통합을 발표하였으며, 이는 Nasdaq의 최소 입찰 가격 요구 사항인 주당 $1.00을 충족하기 위한 것입니다. 회사는 2025년 4월 1일까지 최소 10일 연속으로 주가가 $1.00 이상으로 마감되어야 Nasdaq 상장을 유지할 수 있습니다.
주식 통합은 8개의 보통 주식이 자동으로 1주로 결합되며, 분할 주식은 올림 처리됩니다. 모든 미결제 주식 옵션, 워런트 및 기타 권리는 비례적으로 조정됩니다. 회사는 'SXTC' 기호로 계속 거래되며 새로운 CUSIP 번호 G2161P157을 부여받습니다.
최소 입찰 요건을 충족하지 못할 경우 Nasdaq에서 상장 폐지될 수 있으며, 이는 회사의 증권 가치와 유동성에 상당한 부정적인 영향을 미칠 수 있습니다.
China SXT Pharmaceuticals (SXTC) a annoncé une consolidation des actions au ratio de 1 pour 8, qui entrera en vigueur le 25 février 2025, dans le but de retrouver la conformité avec l'exigence de prix d'offre minimum de Nasdaq de 1,00 $ par action. L'entreprise doit maintenir un prix de clôture supérieur à 1,00 $ pendant au moins dix jours de négociation consécutifs d'ici le 1er avril 2025 pour conserver son inscription sur Nasdaq.
La consolidation signifie que chaque huit actions ordinaires seront automatiquement combinées en une seule action, les actions fractionnaires étant arrondies à l'unité supérieure. Toutes les options d'actions, bons de souscription et autres droits en circulation seront ajustés proportionnellement. L'entreprise continuera à être cotée sous le symbole 'SXTC' avec un nouveau numéro CUSIP G2161P157.
Le non-respect de l'exigence de prix minimum pourrait entraîner une radiation de Nasdaq, ce qui pourrait avoir des effets négatifs significatifs sur la valeur et la liquidité des titres de l'entreprise.
China SXT Pharmaceuticals (SXTC) hat eine 1-zu-8-Aktionenkonsolidierung angekündigt, die am 25. Februar 2025 in Kraft tritt, um die Einhaltung der Mindestangebotspreisanforderung von Nasdaq von $1,00 pro Aktie wiederherzustellen. Das Unternehmen muss den Schlusskurs über $1,00 für mindestens zehn aufeinanderfolgende Handelstage bis zum 1. April 2025 aufrechterhalten, um seine Nasdaq-Notierung zu behalten.
Die Konsolidierung bedeutet, dass jede acht gewöhnlichen Aktien automatisch zu einer Aktie zusammengelegt werden, wobei Bruchstücke aufgerundet werden. Alle ausgegebenen Aktienoptionen, Warrants und sonstigen Rechte werden proportional angepasst. Das Unternehmen wird weiterhin unter dem Symbol 'SXTC' mit einer neuen CUSIP-Nummer G2161P157 gehandelt.
Das Versäumnis, die Mindestgebotsanforderung zu erfüllen, könnte zu einer Delistung von Nasdaq führen, was erhebliche nachteilige Auswirkungen auf den Wert und die Liquidität der Wertpapiere des Unternehmens haben könnte.
- Share consolidation could help maintain Nasdaq listing compliance
- Risk of potential delisting if $1.00 minimum bid price isn't maintained for 10 consecutive days by April 1, 2025
- Share consolidation indicates underlying stock price weakness
- Possible negative impact on stock liquidity
Insights
This share consolidation announcement reveals significant challenges for SXTC and carries substantial risks for investors. The 1-for-8 reverse split is a technical maneuver aimed at maintaining Nasdaq listing compliance, with a critical deadline of April 1, 2025, to maintain a
Historically, reverse splits often signal underlying business difficulties rather than strength. While the mathematical adjustment doesn't directly affect the company's
Several critical risk factors deserve investor attention:
- The consolidation provides no guarantee of maintaining the required minimum bid price, particularly given the typically negative market perception of reverse splits
- Potential delisting would severely impact share liquidity and institutional investor access
- Small-cap Chinese companies listed on US exchanges face additional scrutiny and regulatory challenges, which could affect trading sentiment
- The extremely low market capitalization suggests fundamental business challenges that won't be addressed by this technical adjustment
The automatic rounding up of fractional shares might provide a minimal benefit to some small shareholders but won't materially affect the company's capital structure. Investors should closely monitor post-consolidation trading patterns and compliance status, as failure to meet Nasdaq requirements could trigger accelerated selling pressure.
TAIZHOU, China, Feb. 21, 2025 (GLOBE NEWSWIRE) -- China SXT Pharmaceutics, Inc. (Nasdaq: SXTC) (the “Company” or “SXTC”), a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces (“TCMPs”), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements (“TCMHS”), today announced that it will effect a share consolidation of its ordinary shares at a ratio of 1-for-8, effective on February 25, 2025 (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 February 25, 2025. Upon the market opening on February 25, 2025, the Company’s ordinary shares will continue to be traded on The Nasdaq Stock Market under the symbol “SXTC” with the new CUSIP number G2161P157.
The Company’s Board of Directors approved the afore-mentioned Share Consolidation so as to regain compliance with the minimum bid price requirement of
As a result of the Share Consolidation, every eight (8) shares of the Company’s ordinary shares will be automatically consolidated into one ordinary share. 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. All outstanding stock options, warrants and other rights to purchase the Company's ordinary shares will be adjusted proportionately as a result of the Share Consolidation.
Upon the effectuation of the Share Consolidation, shareholders holding shares through a bank, broker or other nominee will have their shares automatically adjusted to reflect the share consolidation. Beneficial holders may contact their bank, broker or nominee for more information. Please direct any questions to your broker or the Company's transfer agent, Transhare Corporation, by calling +1 303-662-1122.
About China SXT Pharmaceuticals, Inc.
Founded in 2005 and headquartered in Taizhou City, Jiangsu Province, China, China SXT Pharmaceuticals, Inc. is an innovative pharmaceutical company focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces, which is a type of Traditional Chinese Medicine that has been processed to be ready for use. For more information, please visit www.sxtchina.com.
Safe Harbor Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements include, among others, statements regarding the Company’s plans to regain compliance with the minimum bid price requirement. The Company’s actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company’s business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Feng Zhou, Chief Executive Officer
Email: fzhou@sxtchina.com
FAQ
What is the ratio of SXTC's share consolidation announced for February 2025?
When will SXTC's share consolidation become effective?
What is the deadline for SXTC to meet Nasdaq's minimum bid requirement?
What happens to fractional shares in SXTC's consolidation?
What is SXTC's new CUSIP number after the share consolidation?
