Universe Pharmaceuticals proposes revised share consolidation

Universe Pharmaceuticals INC (NASDAQ:UPC), a pharmaceutical company trading at $0.19 per share, announced today a change in its proposed share consolidation ratio. The company’s stock has experienced significant pressure, falling nearly 99% over the past year according to InvestingPro data. Initially, the company intended to ask shareholders to approve a consolidation of its authorized and issued share capital at a ratio of 15:1 during an extraordinary general meeting scheduled for February 17, 2025.

However, the board now believes that it is in the best interest of the company to consider a revised consolidation ratio ranging from 20:1 to 50:1. The board will have the discretion to determine the final ratio within this range. The revised consolidation is planned to be executed before the next annual general meeting on a date decided by the board. With a current market capitalization of just $0.4 million and an InvestingPro Financial Health Score labeled as ’WEAK’, the company faces significant challenges. Discover 12 additional key insights about UPC with an InvestingPro subscription.

In light of this new proposal, the company has called for another extraordinary meeting set for March 1, 2025, to give shareholders the opportunity to vote on the revised share consolidation and related matters.

The decision to adjust the consolidation ratio comes after consideration of all relevant circumstances and is deemed by the board to benefit the company commercially. To facilitate this process, the original meeting scheduled for February 17 will be indefinitely adjourned immediately upon commencement, with a resolution to this effect to be proposed by the Chairman.

The company has provided a notice and proxy statement dated February 11, 2025, to its shareholders in connection with the upcoming extraordinary general meeting. Additionally, a form of proxy card will be mailed to shareholders for use in the March meeting.

This announcement is based on the information provided in a press release statement filed with the SEC. Universe Pharmaceuticals INC, incorporated in the Cayman Islands and headquartered in Ji’an, Jiangxi, China, specializes in pharmaceutical preparations. The company reported revenue of $26.73 million in the last twelve months, with a concerning revenue decline of 22.33%. The company’s shares are traded on the NASDAQ stock exchange, where InvestingPro data shows the stock’s RSI currently indicates oversold territory.

In other recent news, Universe Pharmaceuticals faces potential delisting from the Nasdaq Capital Market due to non-compliance with a minimum bid price requirement. The Chinese pharmaceutical company was issued a delisting notice after its share price remained below $1 for 30 consecutive business days. Universe Pharmaceuticals has until February 5, 2025, to appeal the delisting decision to a Nasdaq hearing panel.

In addition, Universe Pharmaceuticals has announced an Extraordinary General Meeting (EGM) of Shareholders scheduled to take place in early 2025. The purpose of the EGM is to address matters deemed urgent and significant by the company’s leadership, though specifics of the agenda items were not disclosed.

Furthermore, Universe Pharmaceuticals recently secured a definitive agreement with investors for a registered direct offering. The company will sell approximately 18.75 million ordinary shares, or pre-funded warrants in lieu thereof, at $0.80 per share, with an expected gross proceed of around $15 million. The transaction is slated to close pending customary closing conditions. These are the recent developments for Universe Pharmaceuticals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.