Addentax Group Corp. (“Addentax” or the “Company”) (NASDAQ:ATXG), an integrated service provider focusing on garment manufacturing, logistics service, property management and subleasing, today announced that the Company’s board of directors exercised its discretion to effect a 1-for-10 reverse split of its common stock shares (“Reverse Stock Split”) on June 8, 2023 and is expected to become effective on June 30, 2023.
Upon the effectiveness of the reverse share split, Addentax shareholders will receive one new common stock share of Addentax for every ten shares they hold. Addentax’s common stock shares are expected to begin trading on a split-adjusted basis when the market opens on June 30, 2023.
The reverse share split is expected to lead Addentax’s common stock shares to trade at approximately ten times the price per share at which it trades prior to the effectiveness of the reverse share split. Addentax, however, cannot assure that the price of its common stock shares after the reverse split will reflect the 1-for-10 reverse split ratio, that the price per share following the effective time of the reverse split will be maintained for any period of time, or that the price will remain above the pre-split trading price.
As of June 29, 2023, there were 37,395,420 of Addentax’s common stock outstanding. Effecting the Reverse Stock Split will reduce that amount to 3,739,542.
Treatment of Restricted Shares
The number of common stock shares into which Addentax’s outstanding restricted shares will be proportionally adjusted to reflect the reverse split.
Fractional Shares
Any fractional shares that would have resulted because of the Reverse Split will be rounded up to the nearest whole share.
New Stock Certificates
Addentax will adopt a new stock certificate in connection with the implementation of the reverse share split. Addentax’s transfer agent, Transfer Online, Inc., will manage the exchange of share certificates. Shareholders of record will receive a letter of transmittal providing instructions for the exchange of their old certificates as soon as practicable following the effectiveness of the reverse split. Shareholders should not send in their old stock certificates until they receive a letter of transmittal from Transfer Online, Inc. Shareholders who hold their shares through a securities broker or nominee (i.e., in “street name”) will be contacted by their brokers or nominees with any instructions.
