Bullish indicating open at $55-$60, IPO prices at $37
HONG KONG - China Natural Resources, Inc. (NASDAQ:CHNR), a micro-cap company with a market capitalization of $5.55 million and current share price of $0.59, has announced its board’s approval of an eight-to-one share combination for its issued and outstanding common shares. The action, which does not require shareholder approval under BVI law, is scheduled to take effect at the opening of the market on June 12, 2025. Shares of the company will continue trading on the Nasdaq Capital Market under the ticker "CHNR" but will be assigned a new CUSIP number, G2110U125.
With the share combination, every eight existing common shares will be consolidated into one new share. This process is designed to avoid the issuance of fractional shares; instead, shareholders will receive one whole share in place of any fractions. The combination is expected to be equitable across all shareholders, preserving their relative percentage interests in the company, barring minor adjustments due to fractional rounding.
The initiative aims to elevate the company’s per-share trading price to meet the Nasdaq’s minimum bid price requirement of $1.00 for continued listing. Post-combination, China Natural Resources will have an estimated 1,233,221 common shares issued and outstanding, not accounting for shares tied to outstanding options and warrants. The total number of authorized common shares will remain unchanged. According to InvestingPro data, the company’s current ratio stands at 0.25, indicating potential liquidity challenges, while its short-term obligations exceed liquid assets. Want deeper insights? InvestingPro offers 5+ additional key metrics and analysis tools for informed investment decisions.
China Natural Resources, which is currently focused on mining and exploration, particularly in Inner Mongolia for nonferrous metals like lead and silver, is also seeking growth in healthcare and other sectors. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it has not been profitable over the last twelve months, with a negative EBITDA of $0.99 million. Unlock comprehensive financial analysis and real-time alerts with InvestingPro to stay ahead of market movements. The company is in the process of acquiring Williams Minerals, a lithium mining operation in Zimbabwe, owned by its controlling shareholder Feishang Group Limited and Top Pacific (China) Limited. The deal, with a ceiling of US$1.75 billion, is under active negotiation to reach closure.
The information presented is based on a press release statement by China Natural Resources, Inc. and contains forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to change. The company cautions not to rely unduly on these forward-looking statements, which are valid only as of the press release date. Actual outcomes may differ due to various factors, including those discussed in reports filed with the Securities and Exchange Commission.
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