In a recent SEC filing, TH International Limited, the parent company of Tims China, announced a reverse stock split. The filing, dated January 7, 2025, detailed the completion of the reverse stock split process for the company, which operates under the retail-eating places industry classification. The company's stock currently trades at $0.71, having declined over 60% in the past year, according to InvestingPro data.
The reverse stock split, a maneuver often used by companies to boost the price of their shares, reduces the number of shares outstanding by consolidating existing shares into fewer, proportionally more valuable shares. While this does not inherently change the company's market capitalization, currently at $109.18 million, it can affect the stock's liquidity and market perception. InvestingPro analysis indicates the stock is currently undervalued, though it faces significant financial challenges with a concerning current ratio of 0.3.
TH International Limited, also known by its organization name 07 Trade & Services, is incorporated in jurisdiction E9 and has its fiscal year-end on December 31. The business is headquartered in New York, with its principal executive offices located in Shanghai, People's Republic of China.
The company has indicated that it files annual reports under the cover of Form 20-F, which is used by foreign private issuers to provide financial information to the SEC and investors. This form is a requirement for foreign companies listed on U.S. exchanges to provide a level of transparency equivalent to U.S. companies.
The reverse stock split is disclosed in Exhibit 99.1 of the SEC filing, which is part of the company's report as a foreign private issuer pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934. The report is signed by Yongchen Lu, the Chief Executive Officer of TH International Limited.
Investors in TH International Limited will be watching closely to see how this reverse stock split affects the company's stock performance on the market. The move comes as part of the company's ongoing efforts to manage its equity structure and maintain compliance with market regulations. InvestingPro subscribers have access to 12 additional key insights about the company's financial health, including detailed analysis of its debt structure and cash flow patterns. These metrics are crucial for understanding the full impact of this corporate action.
Despite TH International's market capitalization of approximately $107 million, analysts from InvestingPro highlight the company's substantial debt burden and rapid cash consumption. The company, incorporated as 07 Trade & Services with executive offices in Shanghai, People’s Republic of China, is listed under the SEC file number 001-41516, affirming its status as a foreign private issuer in accordance with U.S. SEC regulations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.