J-Long Group Limited will implement a 1-for-10 reverse stock split to comply with Nasdaq's minimum bid price requirement.
Quiver AI Summary
J-Long Group Limited (Nasdaq: JL), a Hong Kong-based distributor of garment trims, announced a 1-for-10 reverse stock split of its ordinary shares, effective December 9, 2024, at 11:59 pm, to comply with Nasdaq's minimum bid price requirement of $1.00 per share. The split will reduce the number of authorized shares from 30 million to 3 million, with a new par value of $0.000375 per share. Stockholders approved this action at a special meeting held on November 18, 2024. Following the split, the shares will start trading on a split-adjusted basis on December 10, 2024. No fractional shares will be issued, and adjustments will be made to outstanding stock options and warrants. Registered stockholders need not take any action to receive their new shares, while those holding shares in brokerage accounts will see automatic adjustments. The company cautioned that certain forward-looking statements regarding the split and its future implications are subject to risks and uncertainties.
Potential Positives
- The implementation of a 1-for-10 reverse stock split demonstrates the company's proactive approach to regaining compliance with Nasdaq's minimum bid price requirements, which is crucial for maintaining its listing on the exchange.
- The reverse stock split received prior approval from shareholders, indicating strong investor confidence and support for the company's strategic decisions.
- The consolidation is expected to enhance the market perception of the company's stock by increasing the per-share price, potentially attracting more institutional investors and improving liquidity.
Potential Negatives
- The company is implementing a 1-for-10 reverse stock split to comply with Nasdaq's minimum bid price requirement, indicating potential financial distress and a decline in investor confidence.
- The total number of authorized shares is being significantly reduced from 30 million to 3 million, which may limit future fundraising opportunities and affect liquidity.
- The need for a reverse stock split suggests that the company's share price has been underperforming, raising concerns about its market position and stability.
FAQ
What is the reason for J-Long Group's reverse stock split?
J-Long Group is implementing a reverse stock split to comply with Nasdaq's minimum bid price requirement of $1.00 per share.
When will the reverse stock split take effect?
The reverse stock split will take effect at 11:59 pm on December 9, 2024.
How will the reverse stock split affect current shareholders?
Every 10 shares will be combined into 1 share, reducing the number of total authorized shares and adjusting outstanding stock options proportionately.
What will happen to fractional shares after the split?
No fractional shares will be issued; shareholders will receive an amount rounded down to the nearest whole share.
Who is the exchange agent for the reverse stock split?
VStock Transfer, LLC will serve as the exchange agent for the reverse stock split.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$JL Hedge Fund Activity
We have seen 1 institutional investors add shares of $JL stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS GROUP AG removed 44,534 shares (-100.0%) from their portfolio in Q3 2024
- XTX TOPCO LTD removed 42,170 shares (-100.0%) from their portfolio in Q2 2024
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- RENAISSANCE TECHNOLOGIES LLC removed 36,970 shares (-100.0%) from their portfolio in Q3 2024
- TWO SIGMA SECURITIES, LLC removed 36,032 shares (-100.0%) from their portfolio in Q3 2024
- TWO SIGMA INVESTMENTS, LP removed 34,962 shares (-100.0%) from their portfolio in Q2 2024
- MILLENNIUM MANAGEMENT LLC removed 29,414 shares (-100.0%) from their portfolio in Q2 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Hong Kong, Dec. 05, 2024 (GLOBE NEWSWIRE) -- J-Long Group Limited (Nasdaq: JL), a Hong Kong-based and established distributor of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pulls and drawcords, today announced today that it will effect a share consolidation ("Reverse Stock Split") of its Ordinary Shares at a ratio of 1-for-10, effective as of 11:59 pm on December 9, 2024 (the "Effective Time"), in order to regain compliance with the minimum $1.00 bid price per share requirement of Nasdaq's Marketplace Rules 5550(a)(2) and Rule 5450(a)(1). The Company's Ordinary Shares are expected to begin trading on a Reverse Stock Split adjusted basis on Nasdaq as of the open of trading on December 10, 2024, under the existing ticker symbol "JL."
The Company's members (Stockholders) previously approved the reverse stock split and granted the Company's board of directors the authority to determine the final reverse stock split ratio and when to proceed with the reverse stock split at a Special Meeting of Stockholders held on November 18, 2024. The Company will file an Amendment to its Memorandum and Articles of Association to effect the share consolidation/reverse stock split at the ratio of 1-for-10 as of the Effective Time.
The CUSIP number for the Company’s Ordinary Shares will be G5191U112.
As of the Effective Time, every 10 shares of the Company's issued and outstanding Ordinary Shares will be combined into one issued and outstanding Ordinary Share. The total number of authorized Ordinary Shares will be reduced from 30,000,000 to 3,000,000, and the par value will change to $0.000375 per share. No fractional Ordinary Shares will be issued in connection with the Reverse Stock Split, and any Shareholders of record who otherwise would be entitled to receive a fraction of a share because they hold a number of pre-split ordinary shares not evenly divisible by the number of pre-split ordinary shares for which each post-split ordinary share is to be exchanged shall be entitled to receive such number of ordinary shares as rounded down to the nearest whole share.
As of the Effective Time, proportional adjustments will also be made to the number of Ordinary Shares issuable upon the exercise of any outstanding stock options or warrants, and the exercise prices and stock price targets of any outstanding stock options, warrants, and equity awards will also be proportionately adjusted, as applicable.
The Company's transfer agent, VStock Transfer, LLC, will serve as the exchange agent for the Reverse Stock Split. Registered stockholders holding pre-Reverse Stock Ordinary Shares of the Company's electronically in book-entry form are not required to take any action to receive post- reverse-split shares. Those stockholders who hold their shares in brokerage accounts or in "street name" will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to each brokers' particular processes, and will not be required to take any action in connection with the Reverse Stock Split.
Disclaimer: Forward-looking statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally relate to future events, such as the expected timing of the reverse stock split, the impact of the reverse stock split on the Company’s share price, and the Company’s ability to meet the minimum per share bid price requirement for continued listing on the Nasdaq Stock Market. You are cautioned that such statements are not guarantees of future performance and that JL’s actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause JL’s actual expectations to differ materially from these forward-looking statements include JL’s ability to continue to comply with applicable listing standards of the Nasdaq Stock Market and the other factors under the heading “Risk Factors” set forth in JL’s Annual Report on Form 20-F, and other filings made with SEC. Such filings are available on our website or at www.sec.gov . You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. JL undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
Hong Kong:
J-Long Group Limited
Edwin Chun Yin Wong, CEO and Director
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@j
-lon
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+852 3693 2110