Corporate ActionJul 28, 2026, 06:07 AM
Zhongchao Completes 1-for-3 Share Consolidation & $4.5M Offering
AI Summary
Zhongchao Inc. announced a 1-for-3 share consolidation, effective June 29, 2026, following shareholder and board approvals. Concurrently, the company completed a registered direct offering on July 24, 2026, raising approximately $4.5 million in net proceeds. The offering involved 300,000 Class A Ordinary Shares and pre-funded warrants to purchase an additional 4,245,455 Class A Ordinary Shares at $1.10 per share or warrant, with proceeds intended for general corporate purposes.
Key Highlights
- Shareholders approved a share consolidation with a ratio between 2:1 and 250:1.
- Board approved a 1-for-3 share consolidation effective June 29, 2026.
- Consolidation changed par value of Class A and B ordinary shares from $0.248 to $0.744.
- Company entered into a securities purchase agreement for a registered direct offering.
- Offering included 300,000 Class A Ordinary Shares and pre-funded warrants for 4,245,455 shares.
- Offering price was $1.10 per Class A Ordinary Share or pre-funded warrant.
- Company received net proceeds of approximately $4.5 million from the offering.
- Univest Securities, LLC acted as the exclusive placement agent, receiving 7.0% commission.
Price Impact
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