Corporate ActionMay 15, 2026, 06:19 AM
Lianhe Sowell to Vote on 1:16 Reverse Stock Split to Meet Nasdaq Minimum Bid Price
AI Summary
Lianhe Sowell International Group Ltd will hold an Extraordinary General Meeting on May 28, 2026, to vote on several proposals. The primary proposal is a 1:16 reverse stock split (share consolidation) for both Class A and Class B Ordinary Shares, aimed at regaining compliance with Nasdaq's minimum bid price requirement. The company also seeks to significantly increase its authorized share capital and grant the Board authority for future share consolidations.
Key Highlights
- Extraordinary General Meeting (EGM) scheduled for May 28, 2026, to vote on corporate actions.
- Proposal for a 1:16 reverse stock split (share consolidation) for Class A and Class B Ordinary Shares.
- Reverse stock split aims to regain compliance with Nasdaq's $1.00 minimum bid price rule; current price is $0.2160.
- Proposal to increase authorized share capital from $50,000 to $80,000,000 post-consolidation.
- Board seeks authority for future share consolidations (2:1 to 250:1 ratio) within two years.
- Fractional shares resulting from consolidations will be rounded up to the next whole share.
- Board unanimously recommends shareholders vote "FOR" all proposals.
Price Impact
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