FGI Industries to implement 1-for-5 reverse share split effective Thursday

FGI Industries Ltd. (NASDAQ:FGI), currently valued at $7.04 million in market capitalization, will implement a 1-for-5 reverse share split of its ordinary shares, effective at 12:01 a.m. Eastern Time on Thursday. The company announced the move in a statement filed with the Securities and Exchange Commission. According to InvestingPro analysis, FGI has been facing challenges with significant debt burden and cash burn rates, potentially influencing this strategic decision.

Under the reverse share split, every five issued and outstanding ordinary shares, including those held as treasury shares, will be automatically combined into one ordinary share. The par value of the company’s ordinary shares will increase from $0.0001 per share to $0.0005 per share as a result.

As of April 24, the company had 9,591,555 ordinary shares issued and outstanding. Shareholders of record will receive a cash payment, without interest, in lieu of any fractional shares resulting from the reverse split. With a Price-to-Book ratio of 0.32 and high stock volatility, investors seeking deeper insights can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports.

FGI Industries’ ordinary shares are expected to begin trading on a split-adjusted basis on the Nasdaq Capital Market at the opening of trading on Thursday. The shares will continue to trade under the symbol FGI, but will receive a new CUSIP number (G3302D202). Publicly traded warrants (NASDAQ:FGIWW) will continue to trade under the same symbol and CUSIP number, but the number of ordinary shares issuable upon exercise will be proportionately decreased. Following the reverse split, every five warrants will be exercisable for one ordinary share at an exercise price of $30.00 per share.

The number of ordinary shares available for issuance under the company’s equity incentive plans and outstanding equity awards will be proportionately adjusted, and the exercise prices of outstanding options and awards will be adjusted in accordance with their terms.

The company stated that the reverse share split will affect all record holders of ordinary shares uniformly and will not alter any record holder’s percentage ownership, except for minimal changes resulting from the elimination of fractional shares. Holders whose shares are held in brokerage accounts will have their accounts automatically adjusted.

This information is based on a statement filed with the Securities and Exchange Commission.

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