AGM Group Holdings Inc. Announces 50 for 1 Share Consolidation
AGM Group Holdings (NASDAQ: AGMH) has announced a 50-for-1 reverse stock split effective June 3, 2025. The consolidation aims to regain compliance with Nasdaq's minimum bid price requirement. Following the split, the company's Class A and B shares will continue trading under "AGMH" with a new CUSIP Number G0132V121.
The consolidation will reduce authorized shares from 400M to 8M, with Class A shares decreasing from 98.7M to approximately 1.97M and Class B shares from 2.1M to about 42,000. The par value will increase from $0.001 to $0.05 per share. No fractional shares will be issued, with cash payments made for fractional interests based on the 5-day average closing price preceding the split.
AGM Group Holdings (NASDAQ: AGMH) ha annunciato un split azionario inverso 50-contro-1 con effetto dal 3 giugno 2025. Questa operazione mira a ripristinare la conformità al requisito minimo del prezzo di offerta imposto da Nasdaq. Dopo lo split, le azioni di Classe A e B della società continueranno a essere negoziate con il simbolo "AGMH" e un nuovo numero CUSIP, G0132V121.
La consolidazione ridurrà le azioni autorizzate da 400 milioni a 8 milioni, con le azioni di Classe A che passeranno da 98,7 milioni a circa 1,97 milioni e le azioni di Classe B da 2,1 milioni a circa 42.000. Il valore nominale aumenterà da $0,001 a $0,05 per azione. Non saranno emesse azioni frazionarie: per le frazioni verranno effettuati pagamenti in contanti basati sulla media del prezzo di chiusura degli ultimi 5 giorni precedenti lo split.
AGM Group Holdings (NASDAQ: AGMH) ha anunciado una consolidación inversa de acciones de 50 a 1 que entrará en vigor el 3 de junio de 2025. Esta consolidación busca cumplir nuevamente con el requisito mínimo del precio de oferta de Nasdaq. Tras la consolidación, las acciones Clase A y B de la compañía seguirán cotizando bajo el símbolo "AGMH" con un nuevo número CUSIP G0132V121.
La consolidación reducirá las acciones autorizadas de 400 millones a 8 millones, con las acciones Clase A disminuyendo de 98.7 millones a aproximadamente 1.97 millones y las acciones Clase B de 2.1 millones a cerca de 42,000. El valor nominal aumentará de $0.001 a $0.05 por acción. No se emitirán acciones fraccionarias, y se realizarán pagos en efectivo por los intereses fraccionarios basados en el precio promedio de cierre de 5 días antes de la consolidación.
AGM Group Holdings (NASDAQ: AGMH)는 2025년 6월 3일부로 50대 1 역병합 주식을 발표했습니다. 이번 병합은 나스닥의 최소 입찰가 요건을 다시 충족하기 위한 조치입니다. 병합 이후 회사의 클래스 A 및 B 주식은 "AGMH"라는 심볼로 계속 거래되며, 새로운 CUSIP 번호 G0132V121이 부여됩니다.
병합으로 인해 승인된 주식 수는 4억 주에서 800만 주로 감소하며, 클래스 A 주식은 9870만 주에서 약 197만 주로, 클래스 B 주식은 210만 주에서 약 4만 2천 주로 줄어듭니다. 액면가는 주당 $0.001에서 $0.05로 인상됩니다. 소수 주식은 발행되지 않으며, 소수 지분에 대해서는 병합 전 5일간 평균 종가를 기준으로 현금으로 지급됩니다.
AGM Group Holdings (NASDAQ : AGMH) a annoncé un fractionnement inversé d'actions de 50 pour 1 effectif à partir du 3 juin 2025. Cette consolidation vise à retrouver la conformité avec l'exigence minimale du prix d'offre de Nasdaq. Après la consolidation, les actions de classe A et B de la société continueront d'être négociées sous le symbole "AGMH" avec un nouveau numéro CUSIP G0132V121.
La consolidation réduira le nombre d'actions autorisées de 400 millions à 8 millions, les actions de classe A passant de 98,7 millions à environ 1,97 million et les actions de classe B de 2,1 millions à environ 42 000. La valeur nominale augmentera de 0,001 $ à 0,05 $ par action. Aucune action fractionnaire ne sera émise, les intérêts fractionnaires étant réglés en espèces sur la base du prix moyen de clôture sur 5 jours précédant la consolidation.
AGM Group Holdings (NASDAQ: AGMH) hat eine 50-zu-1 Reverse-Aktienzusammenlegung angekündigt, die am 3. Juni 2025 wirksam wird. Die Konsolidierung soll die Einhaltung der Mindestgebotspreis-Anforderung der Nasdaq wiederherstellen. Nach der Zusammenlegung werden die Klasse A- und B-Aktien des Unternehmens weiterhin unter dem Symbol "AGMH" mit einer neuen CUSIP-Nummer G0132V121 gehandelt.
Die Konsolidierung reduziert die genehmigten Aktien von 400 Millionen auf 8 Millionen, wobei die Klasse A-Aktien von 98,7 Millionen auf etwa 1,97 Millionen und die Klasse B-Aktien von 2,1 Millionen auf etwa 42.000 sinken. Der Nennwert erhöht sich von 0,001 $ auf 0,05 $ pro Aktie. Bruchstücke von Aktien werden nicht ausgegeben; für Bruchteile erfolgt eine Barauszahlung basierend auf dem 5-Tage-Durchschnitt des Schlusskurses vor der Zusammenlegung.
- Potential to regain Nasdaq compliance and maintain listing status
- Share consolidation affects all shareholders uniformly without altering percentage ownership
- Significant reduction in total outstanding shares could impact stock liquidity
- Reverse split often indicates underlying financial challenges
- Cash payments for fractional shares may result in forced partial position liquidation for some shareholders
Insights
AGMH's 50:1 reverse split aims to regain Nasdaq compliance but signals concerning share price decline without addressing fundamental business issues.
AGMH's announcement of a 50-for-1 reverse stock split is a significant defensive maneuver aimed at maintaining Nasdaq listing compliance. This drastic ratio—far more severe than typical 1:5 or 1:10 reverse splits—suggests the company has experienced a substantial share price deterioration. The primary motivation is clearly stated: to meet Nasdaq's minimum bid price requirement (Rule 5550(a)(2)), which requires shares to maintain at least a
This consolidation will dramatically reduce AGMH's share count from approximately 98.7 million Class A shares to just 1.97 million, while Class B shares will decrease from 2.1 million to approximately 42,000. Authorized shares will similarly contract from 400 million to 8 million, with par value increasing from
Investors should understand that reverse splits are mathematically neutral events—they don't inherently change company valuation or fundamentals. However, they often signal underlying problems and frequently precede further share price declines. The extremely high 50:1 ratio indicates AGMH's shares have likely fallen well below
The market typically views such extreme consolidations negatively as they suggest the company hasn't been able to naturally increase its share price through improved business performance or investor confidence. While this action preserves the Nasdaq listing temporarily, it doesn't address the fundamental issues that led to the price decline in the first place. Without meaningful operational improvements, AGMH could face continued pressure on its newly adjusted share price.
Beijing, May 14, 2025 (GLOBE NEWSWIRE) -- AGM Group Holdings Inc. (“AGM Holdings” or the “Company”) (NASDAQ: AGMH), an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment, today announced that the Company’s board of directors approved on May 9, 2025 that the ordinary shares of the Company be consolidated on a 50 for 1 ratio. The effective date is scheduled to be June 3, 2025, subject to the Company's satisfaction of Nasdaq Operations notice requirements, with trading of the Company’s Class A ordinary shares to begin on a reverse-split-adjusted basis at the market open on that day. Trading in the Class A ordinary shares will continue on the Nasdaq Capital Market, under the same symbol “AGMH” but under a new CUSIP Number, G0132V121.
The objective of the share consolidation is to enable the Company to regain compliance with the minimum bid price requirement pursuant to Nasdaq Marketplace Rule 5550(a)(2) and maintain its listing on Nasdaq.
As a result of the share consolidation, each 50 ordinary shares will automatically combine and convert to one ordinary share without any action on the part of the shareholders. No fractional shares will be issued to any shareholders in connection with the share consolidation, and any fractional shares which would have resulted from the share consolidation will be rounded down to the next whole number and the Company will make a cash payment (without interest) to all the holders of Class A Ordinary Shares and Class B Ordinary Shares equal to such fraction multiplied by the average of the closing sales prices of the ordinary shares on Nasdaq during regular trading hours for the five consecutive trading days immediately preceding the expected first trading day of the share consolidation (with such average closing sales prices being adjusted to give effect to the share consolidation) subject to a de minimums. The share consolidation affects all shareholders uniformly and will not alter any shareholder’s percentage interest in the Company's ordinary shares, except for adjustments that may result from the treatment of fractional shares.
At the time the share consolidation is effective, the Company’s maximum number of authorized shares will be reduced from 400,000,000 divided into (i) 200,000,000 Class A Ordinary Shares with a par value of US
About AGM Group Holdings Inc.
AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment. With a mission to become a key participant and contributor in the global blockchain ecosystem, AGMH focuses on the research and development of blockchain-oriented Application-Specific Integrated Circuit (ASIC) chips, the assembling and sales of high-end crypto miners for Bitcoin and other cryptocurrencies. For more information, please visit www.agmprime.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
AGM Group Holdings Inc.
Email: ir@agmprime.com
Website: http://www.agmprime.com
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FAQ
What is the ratio of AGMH's reverse stock split announced for June 2025?
Why is AGMH conducting a reverse stock split in 2025?
How will AGMH's share structure change after the June 2025 reverse split?
What happens to fractional shares in AGMH's 2025 reverse split?
Will AGMH's stock symbol change after the reverse split?
