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VCI Global Announces 1-for-49 Reverse Stock Split

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VCI Global (NASDAQ: VCIG) has announced a 1-for-49 reverse stock split effective November 5, 2024. The split will reduce outstanding shares from approximately 202.2 million to 4.0 million, with the primary goal of increasing share price to maintain Nasdaq listing compliance. Trading will continue under the symbol 'VCIG' with a new CUSIP number G98218 202. No fractional shares will be issued, with amounts rounded up to the nearest whole share. Vstock Transfer will manage the exchange process for stockholders with physical certificates, while broker-held shares will be automatically adjusted.

VCI Global (NASDAQ: VCIG) ha annunciato un raggruppamento azionario 1-per-49 che entrerà in vigore il 5 novembre 2024. Questo raggruppamento ridurrà le azioni in circolazione da circa 202,2 milioni a 4,0 milioni, con l'obiettivo principale di aumentare il prezzo delle azioni per mantenere la conformità con il listing Nasdaq. La contrattazione continuerà sotto il simbolo 'VCIG' con un nuovo numero CUSIP G98218 202. Non verranno emesse azioni frazionarie, con gli importi arrotondati all'azione intera più vicina. Vstock Transfer gestirà il processo di scambio per gli azionisti con certificati fisici, mentre le azioni detenute da broker saranno automaticamente adeguate.

VCI Global (NASDAQ: VCIG) ha anunciado un división de acciones inversa de 1 por 49 que entrará en vigencia el 5 de noviembre de 2024. Esta división reducirá las acciones en circulación de aproximadamente 202,2 millones a 4,0 millones, con el objetivo principal de aumentar el precio de las acciones para mantener la conformidad con el listado de Nasdaq. La negociación continuará bajo el símbolo 'VCIG' con un nuevo número CUSIP G98218 202. No se emitirán acciones fraccionarias, con los montos redondeados a la acción entera más cercana. Vstock Transfer gestionará el proceso de intercambio para los accionistas con certificados físicos, mientras que las acciones mantenidas por corredores se ajustarán automáticamente.

VCI 글로벌 (나스닥: VCIG)가 2024년 11월 5일부터 시행되는 1대 49 액면 분할을 발표했습니다. 이 분할로 인해 발행 주식 수가 약 2억 2200만 주에서 400만 주로 줄어들며, 주가를 높여 나스닥 상장 요건을 충족하기 위한 주요 목표입니다. 거래는 'VCIG'라는 심볼 아래 계속되며 새로운 CUSIP 번호는 G98218 202입니다. 분할된 주식은 발행되지 않으며, 금액은 가장 가까운 정수 주로 반올림됩니다. Vstock Transfer는 물리적 증서를 가진 주주를 위한 교환 프로세스를 관리할 것이며, 브로커가 보유한 주식은 자동으로 조정됩니다.

VCI Global (NASDAQ: VCIG) a annoncé un rachat d'actions inversé 1 pour 49 qui prendra effet le 5 novembre 2024. Ce rachat réduira le nombre d'actions en circulation d'environ 202,2 millions à 4,0 millions, avec pour objectif principal d'augmenter le prix des actions pour rester conforme aux exigences de la cotation Nasdaq. Les échanges continueront sous le symbole 'VCIG' avec un nouveau numéro CUSIP G98218 202. Aucune fraction d'actions ne sera émise, les montants étant arrondis à l'action entière la plus proche. Vstock Transfer gérera le processus d'échange pour les actionnaires ayant des certificats physiques, tandis que les actions détenues par des courtiers seront automatiquement ajustées.

VCI Global (NASDAQ: VCIG) hat einen 1-zu-49 Reverse-Aktiensplit angekündigt, der am 5. November 2024 wirksam wird. Der Split wird die ausstehenden Aktien von etwa 202,2 Millionen auf 4,0 Millionen reduzieren, mit dem Hauptziel, den Aktienkurs zu erhöhen, um die Nasdaq-Listing-Compliance aufrechtzuerhalten. Der Handel wird weiterhin unter dem Symbol 'VCIG' mit einer neuen CUSIP-Nummer G98218 202 durchgeführt. Es werden keine Bruchaktien ausgegeben, die Beträge werden auf die nächstgelegene volle Aktie gerundet. Vstock Transfer wird den Austauschprozess für Aktionäre mit physischen Zertifikaten verwalten, während von Brokern gehaltene Aktien automatisch angepasst werden.

Positive
  • Reverse split aims to maintain Nasdaq listing compliance
  • No shareholder dilution as fractional shares are rounded up
Negative
  • Reverse split indicates struggle to maintain minimum share price requirement
  • Significant share consolidation (49:1) suggests severe price decline

Insights

This reverse stock split represents a significant defensive move to maintain NASDAQ listing compliance. The 1:49 ratio is notably aggressive, reducing the float from 202.2 million to approximately 4.0 million shares. While this mechanical adjustment doesn't change the company's fundamental value, it could impact trading dynamics through reduced liquidity. Historical patterns suggest that companies implementing such dramatic reverse splits often struggle to maintain their new price levels long-term.

The timing and magnitude indicate severe downward pressure on the stock price, likely falling well below NASDAQ's $1 minimum bid requirement. With a current market cap of just $12.5M, this move may provide temporary price support but doesn't address underlying business challenges. Investors should monitor post-split trading volumes and price stability carefully, as these will be critical indicators of market reception.

KUALA LUMPUR, Malaysia, Nov. 01, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (Frankfurt: H0T) (“VCI Global” or the “Company”), a diversified holding company with expertise in consulting, fintech, AI, robotics and cybersecurity, is pleased to announce the approved 1-for-49 stock split of the Company’s common stock with no par value, effective at 12:01 a.m. Eastern Time on 5 November, 2024 (the “Reverse Stock Split”). VCI Global’s common stock will continue to be traded on the Nasdaq Capital Market on a split-adjusted basis beginning on 5 November, 2024, under the Company’s existing trading symbol “VCIG” with the new CUSIP number G98218 202.

The Reverse Stock Split is primarily intended to increase the market price per share of the Company’s common stock to regain compliance with the minimum bid price required for continued listing on the Nasdaq Capital Market.

The Reverse Stock Split will reduce the number of shares of common stock issued and outstanding from approximately 202.2 million to approximately 4.0 million. No fractional shares will be issued in connection with the Reverse Stock Split. Any amount of fractional shares will be rounded up to the next nearest number at the participant level.

Vstock Transfer, LLC (“Vstock”), the Company’s transfer agent, will act as the exchange agent for the Reverse Stock Split. Vstock will provide instructions to any stockholder with physical stock certificates regarding the process for exchanging their certificates for split-adjusted shares in “book-entry form”. Shares held by stockholders through a broker will have their accounts automatically credited by their brokerage firm, bank, or other nominee, as will any stockholder who held their shares in book-entry form at Vstock.

About VCI Global Limited

VCI Global is a diversified holding company headquartered in Kuala Lumpur, Malaysia. The Company operates through five core businesses: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In Capital Market Consultancy, we provide IPO solutions, investor relations (IR) and public relations (PR) consultancy, and M&A consultancy. Our Fintech arm offers a proprietary financing platform. In Real Estate, we offer specialized real estate consultancy services. The AI business delivers GPU servers, GPU cloud computing services, AI and large language model (LLM) solutions, while the Robotics segment focuses on post-harvest robotics systems. Our Cybersecurity segment provides comprehensive cybersecurity consultancy services and solutions. Committed to fostering innovation and delivering exceptional value, VCI Global has established a strong presence across the Asia-Pacific region, the United States, Europe, and the Middle East, driving growth and transformation on a global scale.

For more information on the Company, please log on to https://v-capital.co/

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

CONTACT INFORMATION:

For media queries, please contact:

VCI Global Limited
enquiries@v-capital.co


FAQ

What is the ratio of VCI Global's (VCIG) reverse stock split announced in November 2024?

VCI Global announced a 1-for-49 reverse stock split effective November 5, 2024.

How many shares will VCIG have outstanding after the November 2024 reverse split?

After the reverse split, VCIG's outstanding shares will reduce from approximately 202.2 million to 4.0 million shares.

Why is VCI Global (VCIG) implementing a reverse stock split in November 2024?

VCI Global is implementing the reverse split primarily to increase the market price per share to regain compliance with Nasdaq's minimum bid price requirement.

When will VCIG's reverse stock split take effect?

The reverse stock split will take effect at 12:01 a.m. Eastern Time on November 5, 2024.

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