TSX drops after Canadian index edges higher in prior session
Investing.com -- Chijet Motor Company, Inc. (NASDAQ:CJET) stock plummeted 33.1% Wednesday after the company announced plans for a 100-for-1 reverse stock split scheduled to take effect on November 3, 2025.
The Chinese automaker said the consolidation will impact all issued and outstanding ordinary shares, with shareholders who would otherwise receive fractional shares having their entitlement rounded up to the nearest whole share. Following the split, Chijet’s Class A ordinary shares will trade on the Nasdaq Capital Market under a new CUSIP number (G4465R 129).
The drastic share consolidation was approved by shareholders on September 24, 2025, along with a company name change from "CHIJET MOTOR COMPANY, INC." to "Digital Currency X Technology Inc." The company also received approval for a Third Amended and Restated Memorandum and Articles of Association.
Chijet stated that the reverse split is expected to increase the market price per share of its Class A ordinary shares. Shareholders holding shares in book-entry form or in "street name" through brokers won’t need to take any action, as positions will be automatically adjusted to reflect the consolidation.
The company’s share price decline suggests investors are reacting negatively to the substantial consolidation, which is often implemented by companies struggling to maintain minimum share price requirements for continued listing on exchanges.
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