Chanson International to conduct 80-for-1 share consolidation

Published 14/08/2025, 12:06
Chanson International to conduct 80-for-1 share consolidation

URUMQI, China - Chanson International Holding (NASDAQ:CHSN), currently trading at $0.08 with a market capitalization of $3.31 million, announced Thursday that its board of directors has approved an 80-for-1 share consolidation effective August 18, 2025, aimed at regaining compliance with Nasdaq’s minimum bid price requirement. According to InvestingPro data, the stock has declined over 95% in the past year.

The consolidation will convert every 80 outstanding ordinary shares into one share automatically without shareholder action. Following the consolidation, Chanson’s Class A ordinary shares will continue trading on the Nasdaq Capital Market under the same CHSN symbol but with a new CUSIP number. Despite the significant price decline, InvestingPro analysis suggests the stock is currently undervalued, with the company maintaining profitability and trading at a P/E ratio of 3.72.

The company’s total issued Class A ordinary shares will decrease from approximately 85.9 million to 1.07 million shares, while Class B shares will reduce from about 5.67 million to 70,875 shares. The par value of each share will increase from $0.001 to $0.08.

No fractional shares will be issued, with shareholders entitled to receive one whole share in lieu of any fractional shares resulting from the consolidation.

The move is specifically designed to help Chanson comply with Nasdaq Marketplace Rule 5550(a)(2), which requires listed companies to maintain a minimum bid price.

Chanson International Holding operates 60 stores in China and three in New York City, offering bakery products, seasonal items, and beverages. The company sells through physical locations, digital platforms, and third-party online food ordering services, generating annual revenue of $18.23 million. Get access to 12 additional InvestingPro Tips and comprehensive financial metrics to make better-informed investment decisions.

This announcement was made in a press release statement from the company.

In other recent news, Chanson International Holding announced it has priced a public offering expected to raise approximately $8 million in gross proceeds. The offering consists of 16 million units priced at $0.50 per unit. Each unit includes one Class A ordinary share or a pre-funded warrant, one Series A warrant, and one Series B warrant. The warrants have an exercise price of $0.525 per share and will be exercisable for two and a half years from issuance. These developments are part of the company’s efforts to secure additional funding. This recent announcement is significant for investors tracking Chanson International’s financial strategies. The offering is structured as a best-efforts public offering. Investors may find the terms of the offering relevant for assessing the company’s future financial maneuvers.

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