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China SXT Pharmaceuticals, Inc. Announces Share Consolidation

1. SXTC to consolidate 8 shares into 1 on Feb 25, 2025. Trading resumes post-consolidation. 2. The reverse split aims to meet Nasdaq's $1.00 minimum bid price. Compliance is critical. 3. Post-consolidation, shares trade under SXTC with new CUSIP G2161P157. Details remain unchanged. 4. Failure to maintain the minimum price may lead to delisting. Liquidity and value risk increase.

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FAQ

Why Neutral?

Reverse splits are typically cosmetic with minimal immediate price effects. However, failure to meet Nasdaq's minimum bid price could trigger delisting, historically causing declines in similar cases.

How important is it?

This consolidation is pivotal for maintaining Nasdaq listing and investor confidence. It signals an urgent effort to comply, but also highlights potential underlying financial challenges if the required price level is not sustained.

Why Short Term?

The event primarily affects near-term trading dynamics as the market adjusts post-consolidation. Past occurrences have shown volatility in the immediate aftermath, though long-term impact is contingent on compliance.

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TAIZHOU, China, Feb. 21, 2025 (GLOBE NEWSWIRE) -- China SXT Pharmaceutics, Inc. (Nasdaq: SXTC) (the “Company” or “SXTC”),  a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces (“TCMPs”), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements (“TCMHS”), today announced that it will effect a share consolidation of its ordinary shares at a ratio of 1-for-8, effective on February 25, 2025 (the “Share Consolidation”). The Company’s ordinary shares are expected to begin trading on a post-consolidation basis at the open of the market session on February 25, 2025. Upon the market opening on February 25, 2025, the Company’s ordinary shares will continue to be traded on The Nasdaq Stock Market under the symbol “SXTC” with the new CUSIP number G2161P157. The Company’s Board of Directors approved the afore-mentioned Share Consolidation so as to regain compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Stock Market (the “Minimum Bid Price Requirement”). In order to maintain the Company’s listing on the Nasdaq Stock Market, the Company’s ordinary shares must have a closing bid price of $1.00 or more for a minimum of ten consecutive trading days by April 1, 2025. There can be no assurance that following the Share Consolidation, the Company’s ordinary shares will remain above $1.00 per share minimum for the requisite period to regain listing compliance. In the event that the Company does not regain compliance with the Minimum Bid Price Requirement, its securities may be subject to delisting from the Nasdaq Stock Market which, in turn, will result in significant adverse effect on the value and liquidity of the Company’s securities. As a result of the Share Consolidation, every eight (8) shares of the Company’s ordinary shares will be automatically consolidated into one ordinary share. No fractional shares will be issued in connection with the Share Consolidation, and in the event that a shareholder would otherwise be entitled to receive a fractional share upon the Share Consolidation, the number of shares to be received by such shareholder will be rounded up to one ordinary share in lieu of the fractional share that would have resulted from the Share Consolidation. All outstanding stock options, warrants and other rights to purchase the Company's ordinary shares will be adjusted proportionately as a result of the Share Consolidation. Upon the effectuation of the Share Consolidation, shareholders holding shares through a bank, broker or other nominee will have their shares automatically adjusted to reflect the share consolidation.  Beneficial holders may contact their bank, broker or nominee for more information. Please direct any questions to your broker or the Company's transfer agent, Transhare Corporation, by calling +1 303-662-1122. About China SXT Pharmaceuticals, Inc. Founded in 2005 and headquartered in Taizhou City, Jiangsu Province, China, China SXT Pharmaceuticals, Inc. is an innovative pharmaceutical company focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces, which is a type of Traditional Chinese Medicine that has been processed to be ready for use. For more information, please visit www.sxtchina.com. Safe Harbor Statement This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements include, among others, statements regarding the Company’s plans to regain compliance with the minimum bid price requirement. The Company’s actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company’s business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. For more information, please contact: Feng Zhou, Chief Executive Officer Email: fzhou@sxtchina.com

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