SHANGHAI - Zhongchao Inc. (NASDAQ: ZCMD), a healthcare service provider specializing in cancer and major diseases, is set to undertake a 1-for-10 share consolidation, as approved by shareholders on Tuesday last week.
The consolidation, which will occur on February 29, 2024, is aimed at maintaining the company's listing on the Nasdaq Capital Market by complying with the Nasdaq Marketplace Rule 5550(a)(2).
The share consolidation will see every ten of the company's Class A and Class B ordinary shares, each with a par value of US$0.0001, merged into one share with a par value of US$0.001. This move will not issue fractional shares. Instead, any fractional shares resulting from the consolidation will be rounded up to the nearest whole number.
The company has stated that the consolidation will affect all shareholders uniformly and will not change any shareholder's percentage interest in the company's outstanding ordinary shares, except for minor adjustments due to fractional shares.
The board of directors initially approved the share consolidation on January 9, 2024, and it was later ratified by shareholders on February 20, 2024. The company's ordinary shares will continue to trade under the ticker symbol "ZCMD" but will be assigned a new CUSIP number of G9897X115 once the consolidation takes effect.
Zhongchao Inc., an offshore holding company incorporated in the Cayman Islands, operates through a series of contractual arrangements with its PRC operating entities. It provides a range of online healthcare and professional training services, patient management, internet healthcare, and pharmaceutical services, mainly targeting healthcare professionals and patients with oncology and other major diseases.
The share consolidation is a strategic step to ensure that Zhongchao Inc. adheres to the trading requirements of the Nasdaq Capital Market, which is crucial for the company's continued access to capital markets and investor interest. This announcement is based on a press release statement from Zhongchao Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.