Meiwu Technology announces 1 for 20 reverse stock split

Published 28/03/2025, 13:38
Meiwu Technology announces 1 for 20 reverse stock split

SHENZHEN, China - Meiwu Technology Company Limited (NASDAQ: WNW), a skincare product seller with a current market capitalization of $5.07 million, has announced a reverse stock split of its ordinary shares, which was approved by the board on March 5, 2025. The reverse split, scheduled for April 1, 2025, will consolidate every 20 existing shares into one new share.

The company’s shares are expected to begin trading on the NASDAQ on a split-adjusted basis when the market opens on the aforementioned date. The reverse stock split aims to increase the market price of Meiwu Technology’s shares by a factor of twenty from its current price of $0.15. According to InvestingPro data, the stock has experienced significant volatility, with a 92.69% decline year-to-date, although there is no guarantee that the post-split share price will reflect the reverse split ratio or that it will remain above the pre-split trading price.

As of March 21, 2025, Meiwu Technology had approximately 63.3 million ordinary shares outstanding. Post-split, the number of shares will be reduced to approximately 3.2 million, without altering the number of authorized shares. The reverse split will also proportionally adjust the number of shares into which the company’s outstanding stock options and restricted shares convert, along with the relevant exercise prices. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 2.64 and holds more cash than debt on its balance sheet.

Shareholders will not need to take action if they hold pre-split shares electronically in book-entry form. Those with paper share certificates will receive new certificates representing the adjusted number of shares once old certificates are tendered for exchange or transfer. Shareholders holding shares through a broker or nominee will receive instructions from their brokers.

This corporate action follows Meiwu Technology’s strategic transition to the skincare industry through its subsidiary, Xiamen Chunshang Health Technology Co., Ltd., after previously focusing on online sales of selected high-quality food products and short message service. Despite recent challenges, the company maintains an impressive gross profit margin of 45.29%. For deeper insights into Meiwu’s financial health and 14 additional ProTips, consider subscribing to InvestingPro.

The information presented in this article is based on a press release statement from Meiwu Technology Company Limited.

In other recent news, Meiwu Technology Company Limited has been notified by Nasdaq about a potential delisting due to its share price falling below the required $1.00 minimum bid for 30 consecutive business days. This notification does not immediately affect Meiwu Technology’s current listing status. To regain compliance, the company must increase its share price to at least $1.00 for 10 consecutive business days before August 26, 2025. If Meiwu Technology fails to meet this requirement within the initial 180-day period, there is a possibility of receiving an additional 180-day extension if other listing standards are met. The company has yet to detail specific plans to address this compliance issue, such as considering a reverse stock split. Meiwu Technology’s filings with the Securities and Exchange Commission may offer further insights into its current situation. The notification reflects the company’s ongoing efforts to meet Nasdaq’s listing requirements.

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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