BEIJING - Datasea Inc. (NASDAQ:DTSS), a company specializing in intelligent acoustics and 5G messaging technology, has announced a reverse stock split of its common stock at a 1-for-15 ratio. The move is aimed at regaining compliance with the Nasdaq Capital Market's minimum bid price requirement. The reverse stock split is scheduled to take effect on January 19, 2024, and trading on a split-adjusted basis will begin on January 23, 2024, under the same ticker symbol "DTSS".
The reverse stock split was approved by Datasea's Board of Directors without the need for stockholder consent, in accordance with Nevada law. As a result, every 15 shares of issued and outstanding common stock will be combined into one share, with the authorized shares reducing proportionally from 375 million to 25 million. The par value per share will remain unchanged.
This action is intended to address the $1.00 minimum bid price per share required by Nasdaq Listing Rule 5550(a)(2), which the company must meet to maintain its listing. Stockholders will see their ownership percentage and voting power remain largely unaffected, except for minor adjustments due to the rounding up of fractional shares.
West Coast Stock Transfer, Inc. will serve as the exchange agent for the reverse stock split. Registered shareholders will not need to take any action to receive their new shares, while those holding shares in brokerage accounts will see their holdings automatically adjusted.
Datasea Inc., based in Nevada and with operations in the U.S. and China, focuses on technologies such as ultrasonic sterilization and artificial intelligence-driven 5G messaging. The company's commitment to expanding its presence in the intelligent acoustics market is underscored by the establishment of a subsidiary, Datasea Acoustics LLC, in Delaware in July 2023.
The information for this article is based on a press release statement from Datasea Inc.
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