AGM Group announces 50-for-1 share consolidation

BEIJING - AGM Group Holdings Inc. (NASDAQ: AGMH), a technology firm specializing in high-performance computing hardware, has announced a 50-for-1 share consolidation approved by its board of directors on May 9, 2025. The company, currently trading at $0.09 per share with a market capitalization of $3.86 million, has seen its stock price decline by over 90% in the past year, according to InvestingPro data. The consolidation is scheduled to take effect on June 3, 2025, contingent upon meeting Nasdaq Operations notice requirements. AGM Group’s Class A ordinary shares will trade on a reverse-split-adjusted basis from the market open on that date.

The share consolidation aims to meet Nasdaq’s minimum bid price requirement for continued listing, as outlined in Nasdaq Marketplace Rule 5550(a)(2). This move will see every 50 existing ordinary shares automatically convert into one ordinary share. Shareholders will not need to take any action for this change to occur. InvestingPro analysis shows the stock currently trades at just 0.17 times book value, suggesting potential undervaluation despite recent price volatility.

No fractional shares will be issued in the consolidation process. Instead, shareholders who would receive fractional shares will be rounded down to the nearest whole share, with the company compensating these shareholders in cash based on the average closing sales price of ordinary shares on the Nasdaq for the five days preceding the consolidation’s first trading day.

The consolidation will uniformly affect all shareholders and will not alter their percentage interest in AGM Group’s ordinary shares, barring fractional share adjustments. Post-consolidation, the company’s authorized shares will decrease from 400 million to 8 million, divided equally between Class A and Class B ordinary shares with adjusted par values.

As a result of the consolidation, the total issued and outstanding Class A ordinary shares will change from approximately 98.7 million with a par value of $0.001 each to around 1.97 million with a par value of $0.05 each. Similarly, Class B ordinary shares will change from 2.1 million with a par value of $0.001 each to approximately 42,000 shares with a par value of $0.05 each. The company maintains a healthy current ratio of 1.32 and has generated $7.11 million in levered free cash flow over the last twelve months.

AGM Group Holdings Inc. is an integrated technology company with a focus on the development and sale of ASIC chips and high-end crypto miners for Bitcoin and other cryptocurrencies. Despite challenging market conditions, the company has maintained profitability with a gross profit margin of 21.4% and generated revenue of $32.04 million in the last twelve months. Subscribers to InvestingPro can access 11 additional investment tips and comprehensive financial metrics to better evaluate AGMH’s investment potential.

This announcement is based on a press release statement. AGM Group Holdings Inc. has made forward-looking statements regarding this share consolidation, and while the company believes these are based on reasonable assumptions, there is no guarantee that expectations will be met and actual results may differ. Investors are encouraged to review the company’s filings with the U.S. Securities and Exchange Commission for further details.

In other recent news, AGM Group Holdings has received a notification from Nasdaq about non-compliance with the minimum bid price requirement, as the company’s shares have been trading below $1.00 for 30 consecutive business days. The notification, dated March 13, 2025, grants AGM Group Holdings a 180-day grace period to meet the requirement by maintaining a closing bid price of at least $1.00 per share for ten consecutive business days. If AGM Group Holdings fails to comply within this timeframe, the company may receive an additional 180-day compliance period, subject to meeting other listing standards. The company’s shares will continue to trade as usual during this period. This notification is part of Nasdaq’s regulatory framework to ensure listed companies meet continuous listing standards. Investors are encouraged to monitor AGM Group Holdings’ filings with the U.S. Securities and Exchange Commission for any updates on the company’s financial condition and operational strategies. The information in this news article is based on press release statements from AGM Group Holdings.

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