Color Star Technology Announces Corporate Name Change, Stock Ticker Symbol Change and 25-for-1 Reverse Share Split
Rhea-AI Summary
Color Star Technology (Nasdaq: ADD) has announced significant corporate changes effective August 22, 2025, including a corporate name change to Zeta Network Group, a new stock ticker symbol "ZNB", and a 25-for-1 reverse share split of its Class A and Class B ordinary shares.
The reverse split will reduce outstanding shares from approximately 14.6 million Class A and 12,000 Class B shares to about 585,000 Class A and 480 Class B shares. The company's authorized capital post-split will be $32 million, divided into 11.2 billion Class A and 1.6 billion Class B ordinary shares with a par value of $0.0025 per share.
These changes reflect the company's new strategic focus on cryptocurrency mining operations and future development plans in the entertainment technology sector.
Positive
- Name change and rebranding reflects strategic pivot to cryptocurrency mining operations
- Reverse split could help maintain Nasdaq listing compliance
- Simplified share structure through consolidation of shares
Negative
- Significant share dilution potential with 12.8 billion authorized shares post-split
- Substantial reduction in total outstanding shares may impact trading liquidity
- Business model uncertainty with shift from entertainment to crypto mining
News Market Reaction
On the day this news was published, ADD declined 41.51%, reflecting a significant negative market reaction. Argus tracked a trough of -51.9% from its starting point during tracking. Our momentum scanner triggered 59 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $2M at that time. Trading volume was elevated at 2.5x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
On June 29, 2025, the shareholders of the Company approved the Corporate Events and corresponding changes in the Seventh Amended and Restated Memorandum and Articles of Association, and on July 28, 2025, the board of directors of the Company approved the definitive reverse share split ratio of 25-for-1. As a result of the reverse share split, the number of ordinary shares outstanding will be reduced from approximately 14.6 million Class A Ordinary Shares and 12,000 Class B Ordinary Shares to approximately 585,000 Class A Ordinary Shares and 480 Class B Ordinary Shares, respectively, subject to rounding up of all fractional shares to the nearest whole share in lieu of such fractional shares. The authorized capital of the Company after the reverse split will be
The Company's transfer agent, Transhare Corporation ("Transhare"), will also act as exchange agent for the reverse share split. The Company understands from Transhare that book entry shareholders will not need to take any action in the reverse share split process. After the reverse share split takes effect, shareholders that currently hold ordinary shares in book entry form will receive updated statements of holding reflecting their holdings referencing the reverse share split.
The Company intends to treat shareholders holding ordinary shares in "street name" (that is, held through a bank, broker or other nominee) in the same manner as shareholders of record whose ordinary shares are registered in their names. Banks, brokers or other nominees will be instructed to effect the reverse share split for their beneficial holders holding our ordinary shares in "street name;" however, these banks, brokers or other nominees may apply their own specific procedures for processing the reverse share split.
The Company's Class A Ordinary Shares will begin trading on a split-adjusted basis when the market opens on August 22, 2025 (
About Color Star Technology Co., Ltd.
Color Star Technology Co., Ltd. (Nasdaq: ADD) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries, Color Metaverse Pte. Ltd. and CACM Group NY, Inc. The Company's online education is provided through its Color World music and entertainment education platform. The Company has also commenced operations in its new cryptocurrency mining business in
Forward-Looking Statements
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, and 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 guarantee 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 future business development, including the development of the metaverse project; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market internationally where ADD conducts its business; reputation and brand; the impact of competition and pricing; government regulations; the ability of Color Star to meet NASDAQ listing standards in connection with the consummation of the transaction contemplated therein; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Color Star. 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
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SOURCE Color Star Technology Co., Ltd.
FAQ
What is the new name and ticker symbol for Color Star Technology (ADD)?
What is the ratio of Color Star's reverse stock split in 2025?
How many shares will Color Star have outstanding after the reverse split?
When will Color Star's reverse split and ticker change take effect?
What is Zeta Network Group's (formerly Color Star) new business focus?
