HANGZHOU – China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), a retail and wholesale distributor of pharmaceutical and healthcare products in China, has announced a 1-for-20 reverse stock split of its ordinary shares. The change is set to take effect on Friday, March 1, 2024, with split-adjusted trading commencing on the Nasdaq Capital Market under the existing ticker symbol "CJJD" at market open.
With this reverse stock split, each 20 shares of the company's issued and outstanding ordinary shares, with a par value of $0.012, will be automatically consolidated into one ordinary share with a par value of $0.24. Shareholders will not receive fractional shares in the process; instead, any fractional shares will be rounded up to the nearest whole number. This reverse stock split is intended to affect all shareholders uniformly and will not change any shareholder's percentage interest in the company, except for minimal adjustments due to the rounding of fractional shares.
The board of directors and shareholders of China Jo-Jo Drugstores approved the reverse stock split, which the company believes will enhance the appeal of its stock to investors. As part of the process, the company will file a Third Amended and Restated Memorandum and Articles of Association with the Cayman Islands Registrar of Companies, effective on the date of the split.
China Jo-Jo Drugstores operates both an online pharmacy and physical retail drugstores with licensed doctors available for consultation. It also serves as a wholesale distributor for pharmaceutical products. The company's strategic moves, including this reverse stock split, are aimed at maintaining and growing its business within the competitive pharmaceutical and healthcare market in China.
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