Lichen China Limited Announces Effectiveness and Ratio of Reverse Stock Split
XIAMEN, China, Feb. 27, 2025 – Lichen China Limited (Nasdaq: LICN), a leading financial and taxation service provider in China, is pleased to announce the effectiveness and ratio of a forthcoming reverse stock split (the “Reverse Split”) of the Company’s ordinary shares (the “Ordinary Shares”).
Background
On February 12, 2025, the Company announced the voting results from the annual meeting of shareholders (the “Meeting”) held on February 10, 2025, on a Current Report on Form 6-K. The Reverse Split was approved by the Company’s shareholders with over 90% votes in favor.
Effectiveness and Ratio of Reverse Stock Split
The Reverse Split was deemed effective as of February 25, 2025. The ratio of the Reverse Split is 1-for-10, meaning that every 10 Ordinary Shares will be automatically converted into one Ordinary Share.
Impact on Shareholders
The Reverse Split aims to increase the per-share trading price of the Ordinary Shares to meet the minimum bid price requirement for continued listing on the Nasdaq Stock Market. This may result in an increase in the value of each remaining share.
- Shareholders holding an even number of Ordinary Shares prior to the Reverse Split will receive a cash payment for the fractional shares.
- Shareholders holding an odd number of Ordinary Shares prior to the Reverse Split will have their shareholdings rounded up to the nearest whole number.
- Shareholders are encouraged to contact their brokers for any questions regarding their individual holdings.
Impact on the World
The Reverse Split may impact the broader financial markets in several ways:
- Increased investor interest: The Reverse Split may attract new investors as the increased per-share price may make the stock more appealing.
- Changed market capitalization: The Reverse Split will result in a reduced market capitalization, which could impact the Company’s ranking among its peers.
- Altered financial ratios: The Reverse Split may change the Company’s financial ratios, requiring analysts and investors to adjust their valuation models.
Conclusion
Lichen China Limited’s announcement of the effectiveness and ratio of a reverse stock split marks a significant milestone for the Company. Shareholders are encouraged to contact their brokers for any questions regarding their individual holdings. The Reverse Split may also impact the broader financial markets, leading to changes in investor interest, market capitalization, and financial ratios. Stay tuned for more updates from Lichen China Limited.
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