HONG KONG - Infobird Co., Ltd (NASDAQ: IFBD), a provider of AI-powered customer engagement solutions, has received shareholder approval for a 1-for-8 share consolidation and a capital reduction and reorganization. The extraordinary general meeting of shareholders, which took place today, sanctioned the changes aimed at ensuring compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its Nasdaq listing.
The share consolidation, effective from the opening of trading on February 27, 2024, will see every eight ordinary shares of US$0.5 par value each combined into one ordinary share of US$4.0 par value. This consolidation is structured to affect all shareholders uniformly without altering their percentage interest in the company, barring minor adjustments due to fractional shares being rounded up to the nearest whole number.
In conjunction with the share consolidation, a capital reduction and share capital reorganization will take effect following a court order from the Grand Court of the Cayman Islands. Subsequently, the company's authorized share capital will be reduced from US$25 billion divided into 6.25 billion shares of US$4.00 each to US$50 million divided into 5 trillion ordinary shares of US$0.00001 each. This step involves canceling unissued ordinary shares and will uniformly affect all shareholders without changing their percentage ownership interests.
The board of directors initially approved these measures on January 10, 2024, with shareholder endorsement following today. Following the effectiveness of the capital reduction and reorganization, Infobird will file a Sixth Amended and Restated Memorandum and Articles of Association with the Cayman Islands Registrar of Companies.
Infobird specializes in software-as-a-service solutions that leverage artificial intelligence to enhance customer engagement. The company's decision to restructure its share capital demonstrates a strategic move to align with market regulations and maintain its position on the Nasdaq Capital Market. This article is based on a press release statement from Infobird Co., Ltd.
InvestingPro Insights
As Infobird Co., Ltd (NASDAQ: IFBD) undergoes significant structural changes to maintain its Nasdaq listing, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Infobird has a market capitalization of 18.65 million USD, reflecting its current valuation in the market. Despite a challenging financial environment indicated by a negative P/E ratio of -1.51 for the last twelve months as of Q2 2023, the company has seen a substantial price total return of 300% over the last month.
An InvestingPro Tip suggests that analysts are anticipating sales growth in the current year, which could signal potential upside for the company's revenue, which stood at 5.51 million USD in the last twelve months as of Q2 2023. Another important metric to consider is the company's gross profit margin, which was 35.93% during the same period. This indicates that while Infobird is facing profitability challenges, it still retains a level of efficiency in its operations.
Investors should note that Infobird's stock has been experiencing high price volatility, an InvestingPro Tip that aligns with the observed price movements. With significant returns over the past week and month, shareholders have witnessed a roller coaster ride. For those considering capitalizing on this volatility or assessing the company's long-term prospects, InvestingPro offers a comprehensive set of additional tips, which can be accessed at https://www.investing.com/pro/IFBD. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24. There are 12 more InvestingPro Tips available that could provide further insights into Infobird's market dynamics and financial health.
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