AGM Group Holdings Inc. Announces Effective Date of 50 for 1 Share Consolidation
AGM Group Holdings (NASDAQ: AGMH) has announced a 50-for-1 share consolidation effective June 3, 2025. The consolidation will reduce the company's outstanding Class A ordinary shares from 98,713,955 to approximately 1,974,279, with par value increasing from US$0.001 to US$0.05. Class B ordinary shares will decrease from 2,100,000 to approximately 42,000.
No fractional shares will be issued, with fractions rounded down and cash payments made to shareholders based on the average closing price of the five trading days before the consolidation. The stock will continue trading on Nasdaq under "AGMH" with a new CUSIP Number G0132V121. Shareholders holding physical certificates will receive instructions to exchange them through VStock Transfer, LLC.
AGM Group Holdings (NASDAQ: AGMH) ha annunciato una consolidazione azionaria 50-contro-1 che entrerà in vigore il 3 giugno 2025. Questa operazione ridurrà le azioni ordinarie di Classe A in circolazione da 98.713.955 a circa 1.974.279, con un aumento del valore nominale da 0,001 USD a 0,05 USD. Le azioni ordinarie di Classe B diminuiranno da 2.100.000 a circa 42.000.
Non saranno emesse azioni frazionarie; le frazioni verranno arrotondate per difetto e agli azionisti sarà corrisposto un pagamento in contanti basato sul prezzo medio di chiusura dei cinque giorni di negoziazione precedenti la consolidazione. Le azioni continueranno a essere quotate al Nasdaq con il simbolo "AGMH" e un nuovo numero CUSIP G0132V121. Gli azionisti che detengono certificati fisici riceveranno istruzioni per lo scambio tramite VStock Transfer, LLC.
AGM Group Holdings (NASDAQ: AGMH) ha anunciado una consolidación de acciones 50 a 1 que será efectiva el 3 de junio de 2025. Esta consolidación reducirá las acciones ordinarias Clase A en circulación de 98,713,955 a aproximadamente 1,974,279, aumentando el valor nominal de US$0.001 a US$0.05. Las acciones ordinarias Clase B disminuirán de 2,100,000 a aproximadamente 42,000.
No se emitirán acciones fraccionarias; las fracciones se redondearán hacia abajo y se realizarán pagos en efectivo a los accionistas basados en el precio promedio de cierre de los cinco días de negociación anteriores a la consolidación. Las acciones seguirán cotizando en Nasdaq bajo el símbolo "AGMH" con un nuevo número CUSIP G0132V121. Los accionistas que posean certificados físicos recibirán instrucciones para intercambiarlos a través de VStock Transfer, LLC.
AGM Group Holdings (NASDAQ: AGMH)는 2025년 6월 3일부로 50대 1 주식 병합을 발표했습니다. 이번 병합으로 회사의 클래스 A 보통주는 98,713,955주에서 약 1,974,279주로 줄어들고, 액면가는 0.001달러에서 0.05달러로 인상됩니다. 클래스 B 보통주는 2,100,000주에서 약 42,000주로 감소합니다.
분할 주식은 발행되지 않으며, 소수점 이하 주식은 내림 처리되고 병합 전 5거래일 평균 종가를 기준으로 현금으로 주주에게 지급됩니다. 주식은 "AGMH"라는 티커로 나스닥에서 계속 거래되며 새로운 CUSIP 번호는 G0132V121입니다. 실물 증서 보유 주주는 VStock Transfer, LLC를 통해 교환 지침을 받게 됩니다.
AGM Group Holdings (NASDAQ : AGMH) a annoncé une regroupement d’actions au ratio de 50 pour 1 qui prendra effet le 3 juin 2025. Cette opération réduira le nombre d’actions ordinaires de Classe A en circulation de 98 713 955 à environ 1 974 279, avec une augmentation de la valeur nominale de 0,001 USD à 0,05 USD. Les actions ordinaires de Classe B passeront de 2 100 000 à environ 42 000.
Aucune action fractionnaire ne sera émise ; les fractions seront arrondies à la baisse et des paiements en espèces seront effectués aux actionnaires sur la base du prix moyen de clôture des cinq jours de bourse précédant le regroupement. Les actions continueront d’être négociées sur le Nasdaq sous le symbole « AGMH » avec un nouveau numéro CUSIP G0132V121. Les actionnaires détenant des certificats physiques recevront des instructions pour les échanger via VStock Transfer, LLC.
AGM Group Holdings (NASDAQ: AGMH) hat eine Aktienzusammenlegung im Verhältnis 50 zu 1 mit Wirkung zum 3. Juni 2025 angekündigt. Durch die Zusammenlegung wird die Anzahl der ausstehenden Stammaktien der Klasse A von 98.713.955 auf etwa 1.974.279 reduziert, während der Nennwert von 0,001 US-Dollar auf 0,05 US-Dollar steigt. Die Stammaktien der Klasse B verringern sich von 2.100.000 auf etwa 42.000.
Bruchteile von Aktien werden nicht ausgegeben; Bruchteile werden abgerundet und Aktionäre erhalten eine Barauszahlung basierend auf dem durchschnittlichen Schlusskurs der fünf Handelstage vor der Zusammenlegung. Die Aktie wird weiterhin unter dem Symbol "AGMH" an der Nasdaq gehandelt und erhält eine neue CUSIP-Nummer G0132V121. Aktionäre, die physische Zertifikate besitzen, erhalten Anweisungen zum Umtausch über VStock Transfer, LLC.
- Share consolidation helps maintain Nasdaq listing requirements
- No alteration to shareholders' percentage ownership in the company (except for fractional shares)
- Cash compensation provided for fractional shares
- Significant reduction in total outstanding shares may impact stock liquidity
- Additional administrative burden for shareholders holding physical certificates
- Potential cash outlay required for fractional share payments
Insights
AGM's 50:1 share consolidation reduces outstanding shares by 98%, potentially addressing NASDAQ compliance issues while maintaining proportional ownership.
AGM Holdings has announced a substantial 50-for-1 share consolidation effective June 3, 2025. This significant restructuring will dramatically reduce the company's outstanding shares from approximately 98.7 million Class A shares to just under 2 million, while Class B shares will decrease from 2.1 million to 42,000. The consolidation also increases the par value from $0.001 to $0.05 per share.
This is a substantial consolidation ratio that signals potential underlying concerns. Most companies implement reverse splits at more moderate ratios (1:5 or 1:10), making this 1:50 ratio particularly aggressive. Such dramatic consolidations typically serve one of two purposes: maintaining NASDAQ listing compliance by elevating share price above minimum thresholds, or repositioning the stock to attract institutional investors who often avoid low-priced securities.
While the press release emphasizes that the consolidation "affects all shareholders uniformly and will not alter any shareholder's percentage interest," it's worth noting that fractional shares will be cashed out. This effectively forces very small shareholders out of their positions if they hold fewer than 50 shares pre-consolidation.
The company has implemented a fairly standard fractional share treatment, with cash payments based on the 5-day average closing price before the consolidation date. This provides some protection against price volatility immediately surrounding the announcement.
Importantly, while ownership percentages remain technically unchanged, reverse splits often face negative market perception as they're frequently associated with struggling companies. Historical data shows many stocks experience downward pressure following such announcements, though individual outcomes vary based on company fundamentals and growth prospects.
Beijing, May 29, 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 it will implement the consolidation (the “Consolidation”) of the ordinary shares of the Company (the “Shares”) on the basis of 50 pre-Consolidation Shares for every one (1) post-Consolidation Share. The Company’s ordinary shares will begin trading on a post-Consolidation basis at market open on June 3, 2025.
The Consolidation reduces the number of the Company’s total issued and outstanding Class A ordinary shares from 98,713,955 Class A ordinary shares with a par value of US
No fractional shares will be issued to any shareholders in connection with the Consolidation, and any fractional shares which would have resulted from the 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 Consolidation (with such average closing sales prices being adjusted to give effect to the Consolidation) subject to a de minimums. The 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.
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.
Registered shareholders who hold physical Share certificates will receive a letter of transmittal requesting that they forward pre-Consolidation Share certificates to the Company’s transfer agent, VStock Transfer, LLC in exchange for new Share certificates representing Shares on a post-Consolidation basis. Shareholders who hold their Shares through a broker or other intermediary and do not have Shares registered in their own name will not be required to complete a letter of transmittal.
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 share consolidation announced for June 2025?
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Will AGMH's stock symbol change after the consolidation?
