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TAIZHOU, China - China SXT Pharmaceuticals, Inc. (NASDAQ:SXTC), a company specializing in Traditional Chinese Medicine Pieces (TCMPs), has announced a share consolidation at a ratio of 1-for-8, set to take effect on February 25, 2025. The company, currently valued at $1.34 million in market capitalization, has seen its stock decline by over 81% in the past year, according to InvestingPro data. The consolidation is a strategic move to meet Nasdaq’s minimum bid price requirement for continued listing.
The share consolidation is expected to raise the per-share price, thereby helping the company to comply with the Nasdaq’s requirement of maintaining a minimum bid price of $1.00 per share. China SXT Pharmaceuticals’ shares must sustain this minimum bid price for at least ten consecutive trading days by April 1, 2025, to remain listed on the Nasdaq Stock Market. InvestingPro data shows the stock currently trades at $0.42, down significantly from its 52-week high of $3.37, with notably high price volatility.
Following the share consolidation, the company’s ordinary shares will trade under the same ticker symbol ’SXTC’, with a new CUSIP number G2161P157. For every eight existing shares, shareholders will receive one post-consolidation share. Fractional shares will not be issued; instead, shareholders entitled to a fractional share will receive one whole share as a replacement.
The company’s board approved this measure to avoid potential delisting, which could significantly impact the value and liquidity of its securities. However, there is no guarantee that the share price will maintain the required level post-consolidation to meet the listing standards. The company’s financial health score is rated as ’WEAK’ by InvestingPro, with concerning metrics including negative EBITDA of -$1.89 million and a return on equity of -22%.
All derivative securities, including stock options and warrants, will be adjusted proportionally due to the share consolidation. Shareholders holding shares through financial institutions will see their holdings automatically adjusted to reflect the consolidation. For further inquiries, shareholders may contact their brokers or the company’s transfer agent, Transhare Corporation.
China SXT Pharmaceuticals, founded in 2005 and based in Taizhou City, Jiangsu Province, focuses on the development and sales of processed TCMPs. The company currently trades at a price-to-book ratio of 0.09, suggesting significant undervaluation, though investors should note that the company is not profitable over the last twelve months and is quickly burning through cash. Despite the forward-looking statements in the press release, the company acknowledges that actual results could differ due to various factors. For deeper insights into SXTC’s financial health and additional ProTips, consider exploring InvestingPro.
This news article is based on a press release statement from China SXT Pharmaceuticals, Inc.
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