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XIAMEN, China - Lichen China Limited (NASDAQ:LICN), now known as Lichen International Limited, has announced a reverse stock split and an official change of its corporate name. The reverse stock split will be carried out at a ratio of one-for-two-hundred (1:200), as approved by the company’s board of directors and shareholders. The split-adjusted shares are expected to begin trading on the Nasdaq Capital Market from the opening of trading on March 3, 2025, under a new CUSIP number, G5479G116. The announcement comes as the company’s stock trades at $0.07, having declined over 94% in the past year, according to InvestingPro data.
The reverse split will affect all issued and outstanding shares of the company’s ordinary shares. It is also designed to reduce the number of shares issuable upon the exercise of outstanding share options or warrants. Following the split, the par value of the ordinary shares will be adjusted to $0.008 per share. The move aims to increase the market price per share of the company’s ordinary shares, potentially bringing Lichen into compliance with Nasdaq’s minimum bid price listing requirement of $1.00. Despite recent stock performance challenges, InvestingPro data shows the company maintains strong financial health with a current ratio of 17.55 and holds more cash than debt on its balance sheet.
Shareholders are not required to take any action as pre-split shares held by registered shareholders will automatically be converted to post-split shares. Those holding shares through a broker, bank, trust, or other nominee will also see their positions automatically adjusted.
Alongside the reverse split, the company’s name will change from Lichen China Limited to Lichen International Limited, effective March 3, 2025. This change was approved by shareholders on February 10, 2025, and will not affect the company’s existing agreements, rights, or obligations.
Lichen, with over 18 years in the industry, is known for its financial and taxation solution services, education support services, and software and maintenance services in China. According to InvestingPro analysis, the company maintains impressive gross profit margins of ~61% and trades at attractive valuations with a P/E ratio of 6.39 and a price-to-book ratio of 0.12. The company cautions that forward-looking statements in their announcement involve risks and uncertainties, and actual results may differ from those anticipated. InvestingPro subscribers have access to 13 additional key insights about Lichen’s financial health and market position.
This news is based on a press release statement issued by Lichen China Limited.
In other recent news, Lichen China Limited has completed its acquisition of Bondly Enterprises, securing the remaining 40% equity interest for $5.33 million. This acquisition makes Bondly a wholly-owned subsidiary, aiming to integrate its advanced technologies and AI capabilities into Lichen China’s operations. Additionally, Lichen China announced a registered direct offering of Class A ordinary shares and pre-funded warrants, expected to raise approximately $3.4 million. Univest Securities, LLC is the exclusive placement agent for this transaction. Moreover, Lichen China has revealed plans to incorporate the DeepSeek optimization framework into its AI model, promising enhanced efficiency and precision in financial and taxation tasks. The integration is set to be completed by the end of the second quarter of 2025. In another development, Lichen China has entered into a definitive agreement for a share sale, projected to generate around $2.8 million in gross proceeds. This offering involves the sale of 20 million Class A ordinary shares or pre-funded warrants, priced at $0.14 per share.
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