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TOKYO - Linkage Global Inc (NASDAQ:LGCB), a cross-border e-commerce integrated services provider, has announced a share consolidation to comply with Nasdaq listing rules. The company’s board of directors approved a 10-for-1 consolidation of its issued and outstanding shares to meet the Nasdaq Marketplace Rule 5550(a)(2), which is necessary for maintaining its listing. The announcement comes as the stock trades at $0.16, near its 52-week low of $0.15, having declined over 95% in the past year. According to InvestingPro analysis, the company currently shows signs of being undervalued based on its Fair Value assessment.
The share consolidation will be effective starting April 7, 2025, when the company’s Class A ordinary shares will begin trading on the Nasdaq Capital Market on a split-adjusted basis under the same ticker symbol "LGCB" but will have a new CUSIP Number, G5500B128. This action will convert every 10 existing ordinary shares into one issued and outstanding ordinary share. Shareholders will not need to take any action as the consolidation will occur automatically. With a current market capitalization of just $5.74 million and revenues of $10.29 million in the last twelve months, the company faces significant challenges, as highlighted by 16 key factors available on InvestingPro.
No fractional shares will be issued in this consolidation. Instead, shareholders will receive one share in lieu of any fractional share that would otherwise have been created by the consolidation. Following the effective date, the company’s authorized share capital will be adjusted accordingly, with the number of Class A ordinary shares being reduced from 9,980,000,000 to 998,000,000 and Class B ordinary shares from 20,000,000 to 2,000,000. Both classes of shares will have a new par value.
Linkage Global Inc, incorporated in the Cayman Islands, operates through its subsidiaries in Japan, Hong Kong, and mainland China. The company provides a range of services including cross-border sales and integrated e-commerce services, though it does not engage in operations of its own. Despite maintaining a healthy current ratio of 2.73 and operating with moderate debt levels, the company’s financial health score remains weak at 1.62 according to InvestingPro metrics, with revenue declining 19% year-over-year.
The information in this article is based on a press release statement. Investors are reminded that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those anticipated. The company advises investors to review other factors that may affect its future results in its filings with the U.S. Securities and Exchange Commission.
In other recent news, Linkage Global Inc has announced its annual general meeting of shareholders, set for March 10, 2025. The Tokyo-based company, incorporated in the Cayman Islands, released a notice indicating that the proxy statement for the meeting will be distributed to all shareholders. This document typically includes the meeting agenda, profiles of board members up for election or re-election, and other proposals requiring shareholder approval. The announcement was made in compliance with the Securities Exchange Act of 1934, which mandates foreign private issuers like Linkage Global Inc to report certain events to the United States Securities and Exchange Commission (SEC). Linkage Global Inc has confirmed its commitment to filing annual reports under Form 20-F, providing a comprehensive overview of its financial performance and operations. The report was signed by Zhihua Wu, the company’s CEO, Director, and Chairman of the Board of Directors, ensuring its compliance with SEC regulations. Shareholders are encouraged to review the proxy statement to prepare for the meeting, where they can express their views and vote on significant company matters. This development underscores the company’s adherence to regulatory requirements and its engagement with shareholders.
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