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HONG KONG - Lion Group Holding Ltd. (NASDAQ: LGHL), a company that operates a comprehensive trading platform with a market capitalization of $2.39 million and revenue of $13.66 million in the last twelve months, has announced a forthcoming change to the ratio of its American Depositary Shares (ADSs) to Class A ordinary shares. According to InvestingPro analysis, the stock is currently trading at $0.10, showing significant potential for value investors. This adjustment, termed the "ADS Ratio Change," will alter the current ratio from one ADS representing fifty Class A ordinary shares to one ADS for two thousand five hundred Class A ordinary shares.
The change is scheduled to take effect on March 26, 2025. For ADS holders, this modification will operate similarly to a one-for-fifty reverse ADS split. The objective behind this move is for Lion to regain compliance with the Nasdaq’s minimum bid price requirement. This comes as InvestingPro data shows the stock has declined by 87% over the past year, with particularly volatile trading patterns. For detailed analysis of the company’s prospects and 12 additional exclusive ProTips, consider exploring InvestingPro’s comprehensive financial insights. On the effective date, those holding certificated ADSs will be required to exchange them for new ones, receiving one new ADS for every fifty held. Uncertificated ADS holders, through the Direct Registration System and The Depository Trust Company, will have their shares exchanged automatically without the need for action.
Lion’s ADSs will continue trading on the Nasdaq Capital Market under the ticker "LGHL" without any fees charged to holders during the exchange process. No fractional new ADSs will be issued; instead, fractional entitlements will be sold, and the net proceeds, after deductions, will be distributed to the holders. The company has noted that the ADS Ratio Change will not affect the underlying Class A ordinary shares, with no new shares being issued or canceled as part of the adjustment.
The company anticipates that the trading price of Lion’s ADSs will increase proportionally following the change, but it cannot guarantee that the post-change trading price will be fifty times higher than the pre-change price.
Lion Group Holding Ltd. offers a variety of trading services, including total return service trading, contract-for-difference trading, over-the-counter stock options trading, and futures and securities brokerage. Despite challenging market conditions, the company has maintained revenue growth of 11.24% and a current ratio of 1.19, though InvestingPro’s Financial Health Score indicates some concerns at 1.33 (Weak). This announcement is based on a press release statement, and Lion’s actual results may differ from expectations. The company cautions against undue reliance on forward-looking statements, which reflect opinions as of their issuance date. For further details on factors that may affect projections, Lion’s filings with the SEC can be consulted.
In other recent news, Lion Group Holding Ltd. has announced its Extraordinary Shareholders’ Meeting scheduled for March 7, 2025. This announcement was made in alignment with the company’s recent Form 6-K filing with the U.S. Securities and Exchange Commission. The meeting will take place at the company’s headquarters in Singapore, and shareholders on record as of February 12, 2025, are entitled to vote on the agenda items. The specific matters to be decided upon have been outlined in the SEC filing, which is part of the company’s compliance with regulatory requirements. The 6-K filing includes several exhibits, such as a formal notice of the meeting, a proxy form, and voting instructions for American Depositary Shares. This corporate update is a routine part of Lion Group Holding’s governance process, ensuring shareholder involvement in key company decisions. More information about the meeting and its agenda can be found in the Form 6-K filed with the SEC.
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