HONG KONG - MMTEC, Inc. (Nasdaq: MTC), a company specializing in investment banking and asset management services, has announced a 1-for-8 reverse stock split of its common stock, scheduled to take effect on December 18, 2024. The announcement comes as the company's stock has declined 73.77% year-to-date, according to InvestingPro data, despite maintaining impressive gross profit margins of 80.12%. The stock will continue trading on the Nasdaq Stock Market under the ticker symbol "MTC" with a new CUSIP number G6181K122 once the reverse split is implemented.
This corporate action was approved by the company's Board of Directors on November 21, 2024, without the need for stockholder approval as per the laws of the British Virgin Islands. Post-split, every eight shares currently held will be consolidated into one share of issued and outstanding common stock. The company has stated that no fractional shares will be issued; instead, shareholders who would receive a fractional share will have their holdings rounded up to the nearest whole number.
The reverse stock split is intended to affect all shareholders uniformly and will not change any shareholder's percentage interest in the company's outstanding common stock, except for the minor adjustments due to the rounding of fractional shares. Currently trading at 0.26 USD, the stock's Price/Book ratio stands at 0.43, indicating potential value opportunity. InvestingPro subscribers have access to 12 additional investment tips and comprehensive financial metrics for MTC.
Concurrent with the reverse stock split, MMTEC has also filed to reduce the authorized number of shares of its common stock from 5 billion shares to 625 million shares and to increase the par value per share from $0.01 to $0.08. This action aligns with the reverse stock split ratio and is part of the company's Second Amended and Restated Memorandum of Association with the Registry of Corporate Affairs of the British Virgin Islands.
The company's press release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995, cautioning that such statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially. With MMTEC's current debt-to-equity ratio at 0.27 and an Altman Z-Score of 7.35, investors are advised to conduct thorough due diligence. Get detailed financial analysis and real-time alerts with InvestingPro.
The information for this report is based on a press release statement from MMTEC, Inc.
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