HWH International announces reverse stock split to meet Nasdaq rules

Published 20/02/2025, 14:58
HWH International announces reverse stock split to meet Nasdaq rules

BETHESDA, MD - HWH International Inc. (NASDAQ:HWH), a diversified lifestyle company with a current market capitalization of $10.06 million, has declared a 1-for-5 reverse stock split of its common stock, effective from the start of trading on February 24, 2025. Trading at $0.31 per share, the stock has declined over 76% in the past year, according to InvestingPro data. This corporate action aims to comply with Nasdaq’s minimum bid price requirement, ensuring the company’s continued listing on the Nasdaq Capital Market.

In the reverse stock split, every five shares of HWH International’s issued and outstanding common stock, or held as treasury stock, will consolidate into one new share. The company’s stock will trade under the same ticker symbol, HWH, with a new CUSIP number, 44852G309. Shareholders will not experience any alteration in their rights or preferences, and the number of authorized shares and the par value will remain unchanged. InvestingPro analysis reveals the company operates with a moderate debt level and maintains a weak overall financial health score.

The company’s board of directors and a majority of its stockholders approved the reverse stock split on January 16, 2025. Adjustments will be made to the exercise prices and the number of shares underlying the company’s existing warrants. The common stock resulting from the reverse stock split will be fully paid and non-assessable.

No fractional shares will be issued. Instead, shareholders who would hold a fractional share will receive a cash payment equivalent to the fractional share’s value based on the closing price of the company’s stock on Nasdaq on the effective date of the reverse stock split.

Further details about the reverse stock split are available in the definitive information statement filed with the Securities and Exchange Commission on January 28, 2025, and can be accessed on the SEC’s website and HWH International’s corporate site.

HWH International Inc. is known for its diverse business model, which includes Hapi Marketplace, Hapi Cafe, Hapi Travel, and Hapi Wealth Builder, focusing on pathways to health, wealth, and happiness. Despite achieving 44.5% revenue growth in the last twelve months, the company reported negative EBITDA of $1.59 million. InvestingPro subscribers have access to 11 additional key insights about HWH’s performance and prospects.

This article is based on a press release statement and covers the factual details regarding HWH International Inc.’s reverse stock split.

In other recent news, HWH International Inc. has successfully regained compliance with Nasdaq’s listing requirements, as confirmed by a notice received on January 23, 2025. This development follows a period of uncertainty regarding the company’s ability to meet the exchange’s financial standards. HWH International has also finalized a public offering, raising approximately $1.76 million in gross proceeds through the sale of common stock and pre-funded warrants. The offering was facilitated by D. Boral (OTC:BOALY) Capital LLC, serving as the exclusive placement agent.

Additionally, HWH International has bolstered its equity through strategic transactions with its majority shareholder, Alset Inc. On November 25, 2024, the company issued 4,411,764 new shares at $0.68 per share, enhancing stockholders’ equity by $3 million. A subsequent agreement on December 24, 2024, saw Alset Inc. purchase an additional 1,300,000 shares at $0.45 per share, contributing $585,000 to equity. These moves have increased Alset’s ownership in HWH to 90.1%.

The company is now under a one-year monitoring period to ensure continued compliance with Nasdaq standards. The recent financial activities and compliance developments are aimed at strengthening HWH International’s market position and supporting its ongoing operations. These updates were disclosed in accordance with SEC filing requirements and provide investors with important insights into the company’s financial health.

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

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