CHANGZHOU, China - EZGO Technologies Ltd. (NASDAQ:EZGO), a provider of short-distance transportation solutions, has announced a reverse stock split of its ordinary shares at a ratio of 1-for-40, effective April 12, 2024. This corporate action will consolidate every forty pre-split shares into one post-split share, adjusting the par value from $0.001 to $0.04 per share.
The reverse stock split aims to elevate the market price per share to comply with Nasdaq's listing requirements. Following the consolidation, the total issued and outstanding ordinary shares will decrease from 102,165,549 to approximately 2,554,139. EZGO's shares will continue trading on the Nasdaq under the ticker symbol "EZGO" but with a new CUSIP number.
Shareholders will not receive fractional shares in the reverse split. Those who would be entitled to a half share or more will receive one full share, while holdings less than half a share will be cancelled. The reverse split did not require shareholder voting under British Virgin Islands law, where the company is incorporated.
VStock Transfer, LLC will manage the exchange process for shares represented by physical stock certificates. Shareholders can contact VStock Transfer for details on adjusting their holdings.
EZGO Technologies leverages IoT platforms and operates two e-bicycle brands, focusing on the design, manufacture, and sale of two-and three-wheeled electric vehicles, intelligent robots, and related accessories. The company's forward-looking statements in the press release are subject to various risks, including economic conditions and market acceptance.
This consolidation event is based on a press release statement from EZGO Technologies Ltd.
InvestingPro Insights
As EZGO Technologies Ltd. (NASDAQ:EZGO) navigates through its reverse stock split to meet Nasdaq's listing requirements, the company's financial health and market performance remain pivotal for investors. According to data from InvestingPro, EZGO's market capitalization stands at a modest $6.07M, reflecting the scale of the company within the industry. Notably, the firm's Price / Book ratio as of the last twelve months ending Q4 2023 is remarkably low at 0.1, which could suggest that the stock is trading below the company's asset value, potentially indicating an undervalued stock.
However, the financial metrics also reveal challenges; EZGO has experienced a significant decline in share price, with a one-year total return plummeting by -95.93%. This aligns with one of the InvestingPro Tips, which indicates that the stock price has performed poorly over the last decade. Additionally, the company's Gross Profit Margin for the same period is relatively weak at 7.16%, underscoring some of the operational difficulties EZGO is facing.
For investors seeking a more in-depth analysis, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available for EZGO, which cover various aspects of the company's financial health and stock performance. These could be particularly useful for those considering the implications of the reverse stock split. Interested readers can unlock these tips and benefit from a comprehensive investment tool by using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.