AGM Group Holdings Inc. Announces Effective Date of 50 for 1 Share Consolidation
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction
On the day this news was published, AGMH declined 11.76%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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?
When will AGMH's share consolidation become effective?
How many shares will AGMH have outstanding after the consolidation?
What happens to fractional shares in AGMH's consolidation?
Will AGMH's stock symbol change after the consolidation?
