1. Cheer Holding plans a 1-for-50 share consolidation effective December 22, 2025. 2. Share consolidation aims to raise stock price and maintain Nasdaq listing. 3. Current shares will decrease from 234 million to approximately 4.7 million. 4. Cheer Holding faces potential delisting from Nasdaq due to low stock price. 5. The company appeals the delisting decision with a hearing scheduled for January 2026.
FAQ
Why Bullish?
The share consolidation is intended to increase share price, essential for Nasdaq compliance. This could restore investor confidence, similar to past successful consolidations in the tech sector.
How important is it?
The potential for delisting could draw investor attention; successful consolidation could stabilize or increase stock price.
Why Short Term?
The immediate effect is on share price due to consolidation; longer-term effects depend on market performance post-consolidation.
Cheer Holding (NASDAQ: CHR) Announces Share Consolidation of Class A Ordinary Shares
Cheer Holding, Inc. (NASDAQ: CHR), a premier provider of next-generation mobile internet infrastructure and platform services, has announced a significant share consolidation. This move entails combining every fifty (50) pre-split Class A ordinary shares into one (1) post-split share, and is set to take effect at 4:05 p.m. New York time on December 22, 2025. Following the consolidation, shares will begin trading on an adjusted basis on December 23, 2025.
Key Details of the Share Consolidation
The share consolidation is intended to augment Cheer Holding's share price, enabling the company to adhere to Nasdaq's listing requirements. Here are the critical aspects:
- Current Class A ordinary shares: 234,309,902
- Post-consolidation Class A ordinary shares: approximately 4,686,199
- CUSIP number post-consolidation: G29973121
- Authorized share capital amounts to US$500,700
No fractional shares will be issued; instead, any fractional amounts resulting from the consolidation will be rounded up to the next whole share.
Implications for Shareholders and Nasdaq Compliance
This consolidation coincides with a recent notification from Nasdaq alerting Cheer Holding of a potential delisting due to its share price closing at $0.10 or below for ten consecutive trading days. The company has scheduled a hearing on January 13, 2026, to appeal this decision.
Cheer Holding hopes that the share consolidation will help regain compliance with Nasdaq's continued listing standards and allow it to remain on the exchange.
About Cheer Holding, Inc.
Cheer Holding, Inc. is dedicated to building a comprehensive digital ecosystem in China, integrating platforms, applications, and technology. The company aims to leverage cutting-edge technologies, including blockchain and AI, to create innovative solutions in the web 3.0 environment. Its portfolio features diverse offerings such as:
- CHEERS Telepathy
- CHEERS Video
- CHEERS e-Mall
- AI-animated short drama series
- Polaris Intelligent Cloud
The company's initiatives focus on hybrid experiences that blend digital interactivity with real-world applications, positioning it for sustainable growth.
Looking Ahead
Investors are reminded that this announcement includes forward-looking statements about Cheer Holding's financial trends and future performance. These statements carry inherent risks and uncertainties. As always, prospective investors should conduct their due diligence and review relevant SEC filings for comprehensive information.