AGM Group announces 50-to-1 share consolidation

BEIJING - AGM Group Holdings Inc. (NASDAQ:AGMH), a technology company focused on high-performance computing equipment, has declared a share consolidation set to start at the opening of the market on June 3, 2025. The action will combine 50 existing ordinary shares into one new share, significantly reducing the total number of shares. The announcement comes as the company’s stock trades at $0.07, with a market capitalization of $6.71 million. According to InvestingPro data, AGMH shares have declined 95% year-to-date.

The consolidation will decrease AGM’s Class A ordinary shares from 98,713,955 to approximately 1,974,279, each with a new par value of $0.05. Similarly, Class B shares will be consolidated from 2,100,000 to about 42,000. This measure aims to adjust the company’s capital structure without altering shareholders’ percentage interests, except for minor changes due to fractional shares. Despite recent market challenges, InvestingPro analysis indicates the company maintains a healthy financial position with a "GOOD" overall Financial Health Score and trades below its Fair Value.

Shareholders will not receive fractional shares. Instead, they will be compensated with cash payments based on the average closing sales prices of AGM’s shares on Nasdaq during the five trading days preceding the consolidation’s first trading day. The new share structure will have a different CUSIP number but will retain the ticker symbol ’AGMH’ on the Nasdaq Capital Market.

Physical certificate holders will be contacted with instructions to exchange their pre-consolidation shares for new certificates. Those with shares held through intermediaries will not require action on their part.

The announcement is based on a press release statement from AGM Group Holdings Inc., which also emphasized its commitment to becoming a significant player in the global blockchain ecosystem, focusing on blockchain-specific ASIC chips and assembling and selling high-end cryptocurrency miners. The company’s forward-looking statements indicate aspirations and projected business strategies but also acknowledge the inherent risks and uncertainties of such statements. Trading at just 0.31 times book value, the stock appears undervalued based on traditional metrics. Investors seeking deeper insights into AGMH’s valuation and growth potential can access over 10 additional exclusive ProTips and comprehensive financial metrics through InvestingPro.

In other recent news, AGM Group Holdings Inc. announced a 50-for-1 share consolidation, which was approved by its board of directors. This move is intended to meet Nasdaq’s minimum bid price requirement for continued listing. The consolidation will result in every 50 existing ordinary shares converting into one ordinary share, and will uniformly affect all shareholders. This change is set to take effect on June 3, 2025, provided Nasdaq Operations notice requirements are met. The total number of authorized shares will decrease significantly, impacting both Class A and Class B ordinary shares.

Additionally, AGM Group Holdings has received a notification from Nasdaq regarding its non-compliance with the minimum bid price requirement. The company’s shares have been trading below the required $1.00 per share for 30 consecutive business days. AGM Group Holdings has until September 9, 2025, to regain compliance, with a possible extension if conditions are met. Despite the notification, the company’s shares will continue to trade as usual. Investors are encouraged to review the company’s filings with the U.S. Securities and Exchange Commission for further updates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.