HONG KONG - J-Long Group Limited (NASDAQ:JL), a distributor of garment trims, announced Monday that it is postponing its planned 1-for-10 reverse stock split until it secures approval from the Nasdaq Stock Market. The move comes as the stock trades at $0.31, down 95.39% year-to-date, according to InvestingPro data. The reverse stock split was previously approved by shareholders at a special meeting on November 18, 2024, with the board given the authority to finalize details.
The delay affects the record date and effective time of the consolidation of the company’s Ordinary Shares. The aim of the reverse stock split is to raise the per share market price of J-Long Group's shares to satisfy Nasdaq's minimum bid price requirement for continued listing. The company will proceed with filing an amendment to its Memorandum and Articles of Association to implement the share consolidation once the record date and effective time are established following Nasdaq's approval.
Upon the reverse stock split's effectiveness, every 10 issued and outstanding Ordinary Shares will be converted into one issued and outstanding Ordinary Share. This action will reduce the total number of authorized Ordinary Shares from 30,000,000 to 3,000,000, and the par value will be adjusted to $0.000375 per share. No fractional shares will be issued; shareholders will receive a rounded down number of shares if they hold a number not divisible by 10.
Proportional adjustments will be made to the terms of any outstanding stock options or warrants, including exercise prices and stock price targets. VStock Transfer, LLC will act as the exchange agent for the reverse stock split. Stockholders with shares in electronic book-entry form or held in brokerage accounts will not need to take any action as adjustments will be made automatically to reflect the reverse stock split.
The company’s CUSIP number, an identifier used for its Ordinary Shares, will change following the reverse stock split. The information regarding the postponement and intended effects of the reverse stock split is based on statements from J-Long Group and is subject to change. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.
J-Long Group has not provided a new expected date for the reverse stock split, indicating that further announcements will be made following the approval from Nasdaq. This news is based on a press release statement from J-Long Group Limited.
In other recent news, J-Long Group, a distributor of garment trims, has announced a 1-for-10 reverse stock split. This move is aimed at regaining compliance with Nasdaq's minimum bid price requirement. The total number of authorized Ordinary Shares will decrease from 30 million to 3 million, and the par value will be adjusted to $0.000375 per share. Proportional adjustments will also be made to the terms of outstanding stock options, warrants, and equity awards.
In addition, J-Long Group has been notified by the Nasdaq Stock Market LLC of a non-compliance issue. The company currently does not meet the minimum market value requirement for continued listing on the Nasdaq Global Market. To regain compliance, J-Long Group must increase its MVPHS to at least $5,000,000 for a minimum of 10 consecutive business days within a 180-day grace period. If the company fails to do so, its shares may face delisting. These are recent developments in the company's ongoing efforts to maintain its market position and listing status.
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