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UTime Limited Announces 1-For-25 Reverse Share Split

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UTime (Nasdaq: WTO) has announced a 1-for-25 reverse share split, effective September 11, 2024. This move aims to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per ordinary share. Key points include:

  • Trading on a split-adjusted basis begins September 11, 2024
  • New CUSIP number: G9411M116
  • Outstanding shares will reduce from ~450 million to ~18 million
  • No fractional shares will be issued; all fractional interests rounded up
  • Adjustments will be made to outstanding derivative securities and equity incentive plans

VStock Transfer, is acting as the exchange agent. Shareholders with book-entry or brokerage accounts need not take action, while those with certificates will receive instructions for the exchange process.

UTime (Nasdaq: WTO) ha annunciato uno split azionario inverso 1 per 25, che entrerà in vigore l'11 settembre 2024. Questa mossa mira a ristabilire la conformità con il requisito del prezzo minimo di offerta di Nasdaq di $1,00 per azione ordinaria. I punti chiave includono:

  • Le negoziazioni inizieranno su base rettificata allo split il 11 settembre 2024
  • Nuovo numero CUSIP: G9411M116
  • Le azioni in circolazione passeranno da circa 450 milioni a circa 18 milioni
  • Non verranno emesse frazioni di azioni; tutti gli interessi frazionari saranno arrotondati per eccesso
  • Verranno apportate modifiche ai valori mobiliari derivati e ai piani di incentivazione per il personale

VStock Transfer agirà come agente di scambio. Gli azionisti con conti di book-entry o di intermediazione non devono intraprendere alcuna azione, mentre coloro che possiedono certificati riceveranno istruzioni per il processo di scambio.

UTime (Nasdaq: WTO) ha anunciado un split inverso de acciones de 1 por 25, efectivo el 11 de septiembre de 2024. Este movimiento tiene como objetivo recuperar el cumplimiento del requisito de precio mínimo de oferta de Nasdaq de $1.00 por acción ordinaria. Los puntos clave incluyen:

  • Las operaciones en base ajustada por el split comenzarán el 11 de septiembre de 2024
  • Nuevo número CUSIP: G9411M116
  • Las acciones en circulación se reducirán de aproximadamente 450 millones a aproximadamente 18 millones
  • No se emitirán acciones fraccionarias; todos los intereses fraccionarios se redondearán hacia arriba
  • Se realizarán ajustes a los valores mobiliarios derivados y a los planes de incentivos de capital

VStock Transfer actuará como agente de intercambio. Los accionistas con cuentas de book-entry o de corretaje no necesitan tomar ninguna acción, mientras que aquellos con certificados recibirán instrucciones para el proceso de intercambio.

UTime (Nasdaq: WTO)는 2024년 9월 11일부터 유효한 1대 25의 역 분할 주식 발표를 했습니다. 이 조치는 Nasdaq의 보통주당 최소 호가 가격 요건인 $1.00에 대한 준수를 회복하기 위해 시행됩니다. 주요 사항은 다음과 같습니다:

  • 분할 조정 기준으로 거래가 2024년 9월 11일부터 시작됩니다
  • 새로운 CUSIP 번호: G9411M116
  • 발행주식 수가 약 4억 5천만 주에서 약 1천8백만 주로 감소합니다
  • 부분주식은 발행되지 않으며, 모든 부분 이해관계는 올림 처리됩니다
  • 발행된 파생 증권 및 주식 인센티브 계획에 조정이 이루어집니다

VStock Transfer가 교환 대행사로 활동합니다. 장부 기록 또는 중개 계좌를 가진 주주들은 조치를 취할 필요가 없으며, 증서를 가진 주주들은 교환 과정에 대한 지침을 받게 됩니다.

UTime (Nasdaq: WTO) a annoncé un fractionnement inversé des actions de 1 pour 25, prenant effet le 11 septembre 2024. Cette mesure vise à retrouver la conformité avec l'exigence de prix d'offre minimum de Nasdaq de 1,00 $ par action ordinaire. Les points clés incluent :

  • Les transactions sur une base ajustée au fractionnement commencent le 11 septembre 2024
  • Nouveau numéro CUSIP : G9411M116
  • Le nombre d'actions en circulation sera réduit d'environ 450 millions à environ 18 millions
  • Aucune fraction d'action ne sera émise ; tous les intérêts fractionnaires seront arrondis à l'entier supérieur
  • Des ajustements seront effectués aux titres dérivés en circulation et aux plans d'incitation en actions

VStock Transfer agira en tant qu'agent d'échange. Les actionnaires avec des comptes en livre ou de courtage n'ont pas besoin d'agir, tandis que ceux avec des certificats recevront des instructions pour le processus d'échange.

UTime (Nasdaq: WTO) hat einen 1 zu 25 Rückwärtssplit von Aktien angekündigt, der am 11. September 2024 wirksam wird. Diese Maßnahme zielt darauf ab, die Einhaltung des erforderlichen Mindestgebots von Nasdaq von 1,00 USD pro Stammaktie wiederherzustellen. Zu den wichtigsten Punkten gehören:

  • Der Handel auf basis der Splitalterationen beginnt am 11. September 2024
  • Neue CUSIP-Nummer: G9411M116
  • Die ausstehenden Aktien werden von ca. 450 Millionen auf ca. 18 Millionen reduziert
  • Es werden keine Bruchstücke von Aktien ausgegeben; alle bruchstückhaften Interessen werden aufgerundet
  • Es werden Anpassungen an den ausstehenden derivativen Wertpapieren und den Aktienanreizplänen vorgenommen

VStock Transfer fungiert als Austauschagent. Aktionäre mit Buchungs- oder Brokerage-Konten müssen keine Maßnahmen ergreifen, während diejenigen mit Zertifikaten Anweisungen für den Austauschprozess erhalten.

Positive
  • Potential to regain compliance with Nasdaq's minimum bid price requirement
  • Reduction in outstanding shares may increase stock price visibility
Negative
  • Significant reduction in total outstanding shares from 450 million to 18 million
  • Potential for shareholder dilution due to rounding up of fractional shares
  • Risk of not meeting Nasdaq compliance despite the reverse split

Insights

UTime 's 1-for-25 reverse share split is a strategic move to regain Nasdaq compliance, but it's not inherently positive for investors. While it artificially boosts the share price, it doesn't change the company's underlying value or financial health. The reduction from 450 million to 18 million shares outstanding might improve liquidity, but it also signals potential delisting concerns. Investors should scrutinize UTime's fundamentals and growth prospects, as reverse splits are often seen as a red flag in the market. The lack of financial details in this announcement leaves important questions unanswered about the company's current performance and future outlook.

This reverse split reflects UTime's struggle to maintain Nasdaq listing requirements, hinting at underlying market challenges in the mobile device manufacturing sector. With a focus on cost-effective products for low-income consumers in emerging markets, UTime may be facing intense competition and thin margins. The 1-for-25 ratio is quite steep, potentially indicating severe share price depreciation. While this move might temporarily boost investor confidence, it doesn't address fundamental business issues. The market often views such drastic measures skeptically and UTime may face increased scrutiny and potential sell-offs in the short term. Long-term success will depend on the company's ability to innovate and capture market share in its target segments.

NEW YORK, Sept. 09, 2024 (GLOBE NEWSWIRE) -- UTime Limited (“UTime” or the “Company”) (Nasdaq: WTO), a mobile device manufacturing company committed to providing cost effective products and solutions to consumers globally and helping low-income individuals from established and emerging markets today announced that it will effect a reverse share split of its outstanding ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), at a ratio of 1-for-25, to be effective on or around the open of trading on September 11, 2024.

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 Wednesday, September 11, 2024. Following the reverse share split, the Ordinary Shares will have a par value of $0.0001 per share and will continue to trade on Nasdaq under the symbol “WTO” with the new CUSIP number, G9411M116. The reverse share split is intended for the Company to regain compliance with the minimum bid price requirement of $1.00 per ordinary share for continued listing on Nasdaq.

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 450 million to approximately 18 million.

On August 28, 2024, the shareholders of the Company approved the reverse share split of the Ordinary Shares, at a ratio of 1-for-25.

VStock Transfer, LLC 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.

VStock Transfer, LLC 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 UTime

UTime Ltd., established in 2008, is committed to providing cost-effective mobile devices to consumers globally and to helping low-income individuals from established markets, including the United States and emerging markets such as India and other countries in South Asia and Africa have better access to updated mobile technology. Since July 2023, we have added smart electric vehicle chargers into our product lines in response to the global demand for energy conservation and carbon reduction. For more information, visit the Company’s website at http://www.utimeworld.com/.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the ability of the Company to regain compliance with Nasdaq continued listing requirements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed in the “Risk Factors” section of the Annual Report in Form 20-F filed with the SEC on July 30, 2024. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

For more information, please contact:

PR

Email: pr@westock.com


FAQ

What is the reverse share split ratio announced by UTime (UTME)?

UTime (UTME) announced a 1-for-25 reverse share split, effective September 11, 2024.

Why is UTime (UTME) implementing a reverse share split?

UTime is implementing the reverse share split to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per ordinary share for continued listing.

How will the reverse split affect UTime 's (UTME) outstanding shares?

The reverse split will reduce UTime 's outstanding shares from approximately 450 million to approximately 18 million.

When will UTime 's (UTME) shares begin trading on a split-adjusted basis?

UTime 's shares are expected to begin trading on a split-adjusted basis at the opening of The Nasdaq Capital Market on or around Wednesday, September 11, 2024.

UTime Limited

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