Corporate ActionJun 23, 2026, 08:02 AM
Zhongchao Shareholders Approve Share Consolidation & Capital Increase
AI Summary
Zhongchao Inc. held an Extraordinary General Meeting on June 18, 2026, where shareholders approved several key corporate actions. These include a significant increase in the company's authorized share capital from US$20 million to US$10 billion. Additionally, shareholders approved a share consolidation, or reverse stock split, with a ratio ranging from 2:1 to 250:1, to be implemented at the Board's discretion within three years. The meeting also approved amendments to the company's memorandum and articles of association to reflect these changes.
Key Highlights
- Shareholders approved an increase in authorized share capital from US$20 million to US$10 billion.
- The increase involves Class A ordinary shares from 72.58 million to 36.29 billion and Class B ordinary shares from 8.06 million to 4.03 billion.
- Shareholders approved the adoption of an amended memorandum of association to reflect the capital increase.
- Shareholders approved a share consolidation (reverse stock split) at a ratio between 2:1 and 250:1.
- The exact consolidation ratio and effective time will be determined by the Board of Directors within three years.
- No fractional shares will be issued; shareholders will be rounded up to the next whole share.
- Shareholders approved the adoption of an amended memorandum and articles of association to reflect the share consolidation.
Price Impact
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