Haoxi Health Technology Limited Announces 1-for-25 Reverse Share Split
MWN-AI** Summary
Haoxi Health Technology Limited, a Beijing-based online marketing solution provider focused on the healthcare sector, has announced a 1-for-25 reverse share split of its ordinary shares. Approved by shareholders during the annual general meeting on January 10, 2025, this corporate action is set to take effect when the market opens on January 27, 2025, on the Nasdaq Capital Market under the ticker symbol "HAO." The reverse split will consolidate every 25 existing Class A and Class B ordinary shares into one share, significantly reducing the total number of outstanding shares—Class A from approximately 53.29 million to around 2.13 million and Class B from about 17.27 million to 0.69 million.
In conjunction with the reverse split, Haoxi amended its Articles and Memorandum of Association to proportionately reduce the number of authorized shares and adjust the par value of the post-split ordinary shares to $0.0025. Fractional shares will not be issued, with shareholders entitled to fractions rounded up to the nearest whole share.
The reverse share split aims to increase the trading price of Class A shares to around twenty-five times their pre-split value. However, Haoxi has cautioned that there are no guarantees that the post-split share price will reflect the split ratio or hold its value over time.
Founded to provide comprehensive online marketing solutions, particularly in short video marketing on popular Chinese platforms, Haoxi is committed to enhancing efficiency for healthcare advertisers while navigating market trends and customer demands. Investors are encouraged to consult the Company's SEC filings for further details and risk factors associated with the reverse share split.
MWN-AI** Analysis
Haoxi Health Technology Limited's announcement of a 1-for-25 reverse share split is a significant move that reflects management’s desire to bolster the stock price and address potential delisting risks in the Nasdaq Capital Market. As of the split, the Company will decrease its outstanding shares to approximately 2.13 million Class A shares and 0.69 million Class B shares. This consolidation is expected to increase the trading price per share significantly, making the stock more appealing to institutional investors, who often have minimum price thresholds for investments.
However, this strategy comes with the assertion that there’s no guarantee the post-split price will sustain. Historically, reverse splits can lead to increased volatility as investors react to the changes in shares outstanding and price per share. It would be prudent for investors to approach this stock cautiously, weighing the historical volatility that may act against sustained price increases.
Haoxi’s positioning in the online marketing solutions for the healthcare sector presents growth potential, particularly given the rising demand for digital marketing amid the ongoing expansion of the healthcare industry in China. The company's focus on innovative advertising formats, like news feed ads and short video marketing, plays into larger trends in consumer engagement and digital transformation.
Investors should closely monitor post-split performance and assess how effectively Haoxi can capitalize on its market niche to drive revenue and profitability. Any signs of growing client engagement, positive earnings reports, or strategic partnerships could serve as indicators for a potential long-term investment opportunity. Nevertheless, the landscape remains competitive, and prospective investors should stay informed about market dynamics and the company's operational developments. Overall, consider this reverse split as part of a broader trend of capital restructuring while remaining cautious of the inherent risks associated with high volatility stocks.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
BEIJING, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Haoxi Health Technology Limited (the “Company” or “HAO”), an online marketing solution provider headquartered in Beijing, China, today announced that it has resolved to effect a reverse share split of the Company’s ordinary shares, with the split ratio set at 1-for-25 (the “Reverse Share Split”). The Reverse Share Split was approved by the Company’s shareholders at an annual general meeting of shareholders held on January 10, 2025. The Company’s Class A ordinary shares will begin trading on an adjusted basis on the Nasdaq Capital Market, reflecting the Reverse Share Split, when the market opens on January 27, 2025, under the existing ticker symbol “HAO.” The new CUSIP number for the Company’s Class A ordinary shares will be G4290F118.
Upon the effectiveness of the Reverse Share Split, every twenty-five shares of the Company’s issued and outstanding Class A ordinary shares as of the effective date will automatically be combined into one Class A ordinary share, and every twenty-five shares of the Company’s issued and outstanding Class B ordinary shares as of the effective date will automatically be combined into one Class B ordinary share. This adjustment will reduce the total number of outstanding Class A ordinary shares of the Company from approximately 53.29 million to approximately 2.13 million, and the total number of outstanding Class B ordinary shares of the Company from approximately 17.27 million to approximately 0.69 million.
In conjunction with the Reverse Share Split, the Company also amended its Articles and Memorandum of Association to proportionately reduce the number of authorized shares for issuance and to adjust the par value of the post-reverse share split ordinary shares to $0.0025 per share.
No fractional shares will be issued; instead, shareholders who would otherwise be entitled to a fractional share will have their entitlement rounded up to the nearest whole share.
The Reverse Split is expected to lead the Company’s Class A ordinary shares to trade at approximately twenty-five times the price per share at which it trades prior to the effectiveness of the Reverse Split. The Company, however, cannot assure that the price of its Class A ordinary shares after the Reverse Split will reflect the 1 for 25 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.
Further details regarding the reverse share split and the associated changes to the Company’s share capital can be found in the Company’s notice of 2025 annual general meeting, filed with the Securities and Exchange Commission on December 19, 2024.
About Haoxi Health Technology Limited
Haoxi Health Technology Limited is an online marketing solution provider headquartered in Beijing, China, specializing in serving healthcare industry advertiser clients. The Company’s growth is driven by the rise of news feed ads and the rapid development of the healthcare sector. The Company offers one-stop online marketing solutions, especially in online short video marketing, helping advertisers acquire and retain customers on popular platforms in China, such as Toutiao, Douyin, WeChat, and Sina Weibo. The Company is dedicated to reducing costs, increasing efficiency, and providing easy online marketing solutions to advertisers. For more information, please visit: http://ir.haoximedia.com .
Forward-Looking Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions, and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's forecast on market trends; the Company's future business development; the demand for and market acceptance for new services; expectation to receive customer orders for new services; the anticipated timing for the marketing and sales of new solutions; changes in technology; the Company's ability to attract and retain skilled professionals; client concentration; and general economic conditions affecting the Company's industry and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov . The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
FAQ**
How might the reverse share split impact the trading volume and price adjustment for Haoxi Health Technology Limited shares in the Invesco China Small Cap ETF Invesco Capital Management LLC HAO post-January 27, 2025?
What are the potential implications of HAO's share consolidation on investor sentiment towards the Invesco China Small Cap ETF Invesco Capital Management LLC HAO, especially among institutional investors?
With HAO's focus on online marketing solutions for the healthcare sector, how could this niche positioning affect its attractiveness as an investment in the Invesco China Small Cap ETF Invesco Capital Management LLC HAO?
Given HAO's growth projections and the risks mentioned, what factors should investors in the Invesco China Small Cap ETF Invesco Capital Management LLC HAO consider when evaluating the long-term viability of Haoxi Health Technology?
**MWN-AI FAQ is based on asking OpenAI questions about Invesco China Small Cap ETF Invesco Capital Management LLC (NASDAQ: HAO).
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