Davis Commodities Shareholders Approve Share Consolidation to Boost Share Price and Market Standing

Rhea-AI Summary

Davis Commodities (Nasdaq: DTCK) announced shareholder approval of a 20-for-1 share consolidation at an EGM on February 4, 2026, with the board resolving on February 5, 2026 to implement immediately. The consolidation aims to raise the per-share price, regain minimum bid-price compliance, and reduce volatility.

The consolidated shares are expected to begin trading on or about February 16, 2026, subject to Nasdaq confirmation and completion of required procedures. The measure passed with 97.91% of votes cast in favor across classes.

Positive

• Share consolidation approved at a 20-for-1 ratio
• Board resolved to implement consolidation on February 5, 2026
• Approval received with 97.91% of votes cast in favor
• Consolidation aims to regain minimum bid-price compliance

Negative

• Class A shareholders cast more votes against (137,089) than in favor (121,876)
• Implementation is subject to Nasdaq confirmation and procedural completion
• Board may issue additional shares to round up fractions, causing potential dilution

Key Figures

Consolidation ratio: 20-for-1 EGM date: February 4, 2026 Effective trading date: On or about February 16, 2026 +5 more

8 metrics

Consolidation ratio 20-for-1 Board-approved share consolidation of Class A and Class B shares

EGM date February 4, 2026 Extraordinary General Meeting approving share consolidation

Effective trading date On or about February 16, 2026 Expected start of trading in consolidated shares on Nasdaq

Total votes for 495,571,306 Aggregate votes cast in favor of consolidation resolution

Votes against 137,089 Aggregate votes cast against consolidation resolution

Abstentions 1,850 Aggregate abstaining votes on consolidation resolution

Support percentage 97.91% Shareholder support as percentage of 506,305,124 votes

Total votes outstanding 506,305,124 Votes attached to issued and outstanding shares

Market Reality Check

Price: $0.2091 Vol: Volume 269,902 is slightl...

normal vol

$0.2091 Last Close

Volume Volume 269,902 is slightly below 20-day average of 310,414 (relative volume 0.87). normal

Technical Price at 0.2091 is trading below 200-day MA of 0.79 and far under 52-week high of 6.89.

Peers on Argus

DTCK was up 7.01% while peers were mixed: LOCL down 8.84%, SDOT up 1.08%, EDBL u...

1 Up

DTCK was up 7.01% while peers were mixed: LOCL down 8.84%, SDOT up 1.08%, EDBL up 13.56%, APPH flat, AQB up 5.26%. Only one peer appeared in momentum scans, pointing to a stock-specific move around the share consolidation news.

Historical Context

5 past events · Latest: Dec 29 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 29	Strategic evaluation	Positive	+16.2%	Assessment of China and North Asia scale-up in sweeteners market.
Dec 23	Earnings results	Neutral	-2.1%	First-half 2025 results with strong revenue but compressed margins and cash use.
Nov 07	Strategic evaluation	Neutral	-77.9%	Exploration of premium-nutrition vertical in large specialty ingredients market.
Nov 04	Business expansion	Positive	+63.5%	Launch of SEA FMCG unit to extend reach into consumer markets.
Nov 03	Strategic evaluation	Positive	+66.8%	Evaluation of USD 1B ESG-tokenized yield corridor across trade routes.

Pattern Detected

Stock has often shown large moves on strategic news, sometimes diverging sharply from the seemingly exploratory tone of announcements.

Recent Company History

Over the past few months, Davis Commodities issued several strategic and financial updates. On Nov 3, 2025 and Nov 4, 2025, announcements on an ESG‑tokenized yield corridor and FMCG expansion coincided with gains above 60%. A premium-nutrition evaluation on Nov 7, 2025 saw a sharp selloff despite its exploratory nature. Earnings for the first half of fiscal 2025 on Dec 23, 2025 brought modest pressure, while a China and North Asia scale-up assessment on Dec 29, 2025 was followed by a double‑digit rise. The current share consolidation fits ongoing efforts to address listing requirements and market positioning.

Market Pulse Summary

This announcement details shareholder approval of a 20-for-1 share consolidation for both Class A an...

Analysis

This announcement details shareholder approval of a 20-for-1 share consolidation for both Class A and Class B ordinary shares, targeting higher per-share pricing and alignment with Nasdaq’s $1.00 minimum bid requirement. Support was strong, with 97.91% of 506,305,124 votes in favor. Recent history shows sizable stock moves around strategic updates and corporate actions. Key items to watch include the effective trading date around February 16, 2026 and subsequent liquidity and volatility patterns.

Key Terms

share consolidation, nasdaq capital market, fractional entitlements, capitalizing reserves, +1 more

5 terms

share consolidation financial

"shareholders have approved a share consolidation proposal at an Extraordinary General Meeting"

Share consolidation is a process where a company reduces the total number of its shares by combining multiple existing shares into a smaller number of higher-value shares. This can make each share more expensive and potentially improve the company’s image. For investors, it often means their ownership remains the same, but the value of each share increases, which can influence how the stock is perceived and traded.

nasdaq capital market regulatory

"trading of the consolidated shares on the Nasdaq Capital Market (“Nasdaq”)"

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

fractional entitlements financial

"deal with any fractional entitlements arising from the share consolidation"

Fractional entitlements occur when a corporate action (like a dividend, stock split, rights offering or consolidation) would give a shareholder a non-whole share or security — for example, 0.5 of a share. Companies typically settle these fractions by paying a small cash amount or rounding up/down, and this matters to investors because it changes cash balances, can slightly alter ownership percentages, and may have small tax and record-keeping implications, much like receiving change after splitting a bill.

capitalizing reserves financial

"including by capitalizing reserves or profits and issuing additional shares"

Capitalizing reserves means converting a company’s accumulated profits or set-aside funds into permanent capital on the balance sheet, most commonly by turning them into new shares or by reclassifying them as long-term equity rather than retained earnings. For investors this matters because it changes ownership proportions and per‑share measures—like earnings per share—without moving cash, similar to slicing the same pie into more pieces or reshuffling ingredients into a different bowl.

proxy regulatory

"Shareholders were able to vote either by proxy, via internet or mail"

A proxy is the authorization a shareholder gives to another person or document to cast votes on their behalf at a company meeting. Think of it like handing someone your voting ticket so they can represent your choices on board elections, executive pay, mergers and other big decisions; it matters because proxies determine who controls the company and which proposals pass, directly affecting share value and investor returns.

AI-generated analysis. Not financial advice.

SINGAPORE, Feb. 06, 2026 (GLOBE NEWSWIRE) -- Davis Commodities Limited (“Davis Commodities” or the “Company”) announced that shareholders have approved a share consolidation proposal at an Extraordinary General Meeting (EGM) held on February 4, 2026, at Genting Hotel Jurong in Singapore. The measure is aimed at increasing the Company’s share price, regaining compliance with minimum bid price requirements, enhancing market credibility and investor confidence, and moderating excessive share price volatility.

​The approved resolution authorized the consolidation of both Class A and Class B ordinary shares of the Company. The board of directors resolved on February 5, 2026 to implement the share consolidation at a ratio of 20‑for‑1 with immediate effect. The effective date of the trading of the consolidated shares on the Nasdaq Capital Market (“Nasdaq”) is expected to be on or about February 16, 2026 subject to confirmation by Nasdaq and the completion of the relevant procedures. The board is also authorized to deal with any fractional entitlements arising from the share consolidation, including by capitalizing reserves or profits and issuing additional shares where necessary to round up fractional holdings.

​The resolution further grants the directors broad authority to take all steps required to implement the share consolidation, including any related corporate actions. Shareholders were able to vote either by proxy, via internet or mail, or in person at the EGM, with the ordinary resolution requiring a simple majority of votes cast by Class A and Class B shareholders voting together as a single class.

​The proposal passed with strong support. Holders of Class A ordinary shares cast 121,876 votes in favor, 137,089 against and 1,850 abstentions, while Class B shareholders—whose votes carry 30 votes per share—cast 495,449,430 votes in favor and none against. In total, 495,571,306 votes were cast for the resolution, 137,089 against and 1,850 abstentions, representing 97.91% of the 506,305,124 votes attached to the Company’s issued and outstanding shares.

About Davis Commodities Limited

Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries.

For more information, visit https://ir.daviscl.com

Forward-Looking Statements

This press release contains certain forward-looking statements, within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by terms such as “believe,” “project,” “predict,” “budget,” “forecast,” “continue,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,” and similar expressions or negative versions of those expressions.

Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, therefore, subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements contained in this press release. The Company’s filings with the SEC identify and discuss other important risks and uncertainties that could cause events and results to differ materially from those indicated in these forward-looking statements.

Forward-looking statements speak only as of the date on which they are made. Readers are cautioned not to place undue reliance upon forward-looking statements. Davis Commodities Limited assumes no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, please contact:

Davis Commodities Limited
Investor Relations Department
Email: investors@daviscl.com

Celestia Investor Relations
Dave Leung
Email: investors@celestiair.com

FAQ

What is the share consolidation ratio approved for Davis Commodities (DTCK)?

The consolidation is a 20-for-1 reverse split of both Class A and Class B shares. According to Davis Commodities, the board resolved on February 5, 2026 to implement the 20-for-1 consolidation with immediate effect, subject to Nasdaq procedures.

When will the consolidated Davis Commodities (DTCK) shares begin trading on Nasdaq?

The consolidated shares are expected to trade on or about February 16, 2026. According to Davis Commodities, the effective trading date is subject to confirmation by Nasdaq and completion of the relevant procedures.

How strongly did Davis Commodities shareholders approve the DTCK consolidation?

The resolution passed with 97.91% of votes cast in favor across both share classes. According to Davis Commodities, total votes were 495,571,306 for, 137,089 against, and 1,850 abstentions.

Will the DTCK consolidation cause dilution for current shareholders?

The board may issue additional shares to round up fractional entitlements, which could cause minor dilution. According to Davis Commodities, directors are authorized to capitalize reserves or issue shares to eliminate fractional holdings.

Why did Davis Commodities (DTCK) pursue the 20-for-1 consolidation?

The company said the consolidation aims to increase share price, restore minimum bid-price compliance, and enhance market credibility. According to Davis Commodities, the measure is also intended to moderate excessive share price volatility.