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E-Home Household Service Holdings Limited Announces Share Consolidation

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E-Home Household Service Holdings Limited (Nasdaq: EJH) has announced a 1-for-50 share consolidation approved by shareholders on May 1, 2025. The consolidation will take effect on May 30, 2025, reducing the outstanding shares from 183,690,171 to approximately 3,673,850. The primary purpose is to comply with Nasdaq's minimum bid price requirements (Rule 5550(a)(2)). The consolidation will not affect shareholders' ownership percentages or voting power, except for minor adjustments due to fractional shares being rounded up. Trading will continue under the symbol "EJH" with a new CUSIP number G2952X153. Shareholders with electronic holdings at brokerage firms need not take any action.

E-Home Household Service Holdings Limited (Nasdaq: EJH) ha annunciato una consolidazione azionaria 1-contro-50 approvata dagli azionisti il 1° maggio 2025. La consolidazione entrerà in vigore il 30 maggio 2025, riducendo le azioni in circolazione da 183.690.171 a circa 3.673.850. Lo scopo principale è rispettare i requisiti minimi di prezzo di offerta del Nasdaq (Regola 5550(a)(2)). La consolidazione non influirà sulle percentuali di proprietà o sul potere di voto degli azionisti, salvo lievi aggiustamenti dovuti all'arrotondamento delle azioni frazionarie. Le negoziazioni continueranno con il simbolo "EJH" e un nuovo numero CUSIP G2952X153. Gli azionisti con titoli elettronici presso le società di intermediazione non devono intraprendere alcuna azione.
E-Home Household Service Holdings Limited (Nasdaq: EJH) ha anunciado una consolidación de acciones 1 por 50 aprobada por los accionistas el 1 de mayo de 2025. La consolidación entrará en vigor el 30 de mayo de 2025, reduciendo las acciones en circulación de 183,690,171 a aproximadamente 3,673,850. El objetivo principal es cumplir con los requisitos mínimos de precio de oferta de Nasdaq (Regla 5550(a)(2)). La consolidación no afectará los porcentajes de propiedad ni el poder de voto de los accionistas, salvo pequeños ajustes por el redondeo de acciones fraccionarias. La negociación continuará bajo el símbolo "EJH" con un nuevo número CUSIP G2952X153. Los accionistas con tenencias electrónicas en firmas de corretaje no necesitan realizar ninguna acción.
E-Home Household Service Holdings Limited (나스닥: EJH)는 2025년 5월 1일 주주들의 승인을 받은 1대 50 주식 병합을 발표했습니다. 이 병합은 2025년 5월 30일부터 시행되며, 발행 주식 수를 183,690,171주에서 약 3,673,850주로 줄입니다. 주요 목적은 나스닥의 최소 매수가격 요건(규칙 5550(a)(2))을 충족하기 위함입니다. 병합은 소액 주식의 반올림으로 인한 미세 조정을 제외하고 주주의 소유 비율이나 의결권에 영향을 미치지 않습니다. 거래는 "EJH" 심볼과 새로운 CUSIP 번호 G2952X153으로 계속됩니다. 중개 회사에 전자 보유 주식을 가진 주주는 별도의 조치를 취할 필요가 없습니다.
E-Home Household Service Holdings Limited (Nasdaq : EJH) a annoncé une consolidation d’actions au ratio de 1 pour 50 approuvée par les actionnaires le 1er mai 2025. Cette consolidation prendra effet le 30 mai 2025, réduisant le nombre d’actions en circulation de 183 690 171 à environ 3 673 850. L’objectif principal est de se conformer aux exigences minimales de prix de Nasdaq (règle 5550(a)(2)). La consolidation n’affectera pas les pourcentages de propriété ni le pouvoir de vote des actionnaires, sauf pour de légers ajustements liés à l’arrondissement des actions fractionnaires. Les transactions se poursuivront sous le symbole « EJH » avec un nouveau numéro CUSIP G2952X153. Les actionnaires détenant des actions électroniques chez des courtiers n’ont aucune démarche à effectuer.
E-Home Household Service Holdings Limited (Nasdaq: EJH) hat eine von den Aktionären am 1. Mai 2025 genehmigte Aktienzusammenlegung im Verhältnis 1 zu 50 angekündigt. Die Zusammenlegung tritt am 30. Mai 2025 in Kraft und reduziert die ausstehenden Aktien von 183.690.171 auf etwa 3.673.850. Der Hauptzweck besteht darin, die Mindestgebotspreis-Anforderungen der Nasdaq (Regel 5550(a)(2)) zu erfüllen. Die Zusammenlegung wirkt sich nicht auf die Eigentumsanteile oder Stimmrechte der Aktionäre aus, abgesehen von geringfügigen Anpassungen aufgrund der Aufrundung von Bruchstücksaktien. Der Handel wird unter dem Symbol "EJH" mit einer neuen CUSIP-Nummer G2952X153 fortgesetzt. Aktionäre mit elektronischem Depot bei Brokerfirmen müssen keine Maßnahmen ergreifen.
Positive
  • No change in shareholders' proportional ownership and voting power
  • Aims to maintain Nasdaq listing compliance
  • Automatic handling of consolidation for shareholders with electronic holdings
  • Fractional shares will be rounded up, benefiting shareholders
Negative
  • Significant reduction in total outstanding shares (183.7M to 3.7M)
  • Indicates potential ongoing compliance issues with Nasdaq minimum bid requirements
  • May not guarantee long-term price stability or Nasdaq compliance

Insights

EJH executing 1:50 reverse split to maintain Nasdaq listing requirements; typically signals underlying financial challenges.

E-Home's announced 1-for-50 share consolidation represents a significant corporate action designed to artificially boost the company's share price to meet Nasdaq's minimum bid price requirement of $1.00. Looking at the mechanics: pre-consolidation share count of 183,690,171 will reduce to approximately 3,673,850 shares, with trading under the same symbol beginning May 30.

The key motivation here is explicitly regulatory compliance, not business fundamentals improvement. Reverse splits are typically implemented when companies face prolonged share price deterioration. While mathematically neutral in theory (proportional ownership remains unchanged), reverse splits historically carry negative signaling implications.

Particularly concerning is the extreme ratio chosen (1:50) when the board had flexibility to select any ratio between 1:2 and 1:50. Companies typically choose the minimum ratio necessary to achieve compliance, suggesting EJH's pre-split share price is severely depressed. The decision to round up fractional shares represents a minor shareholder-friendly element in an otherwise concerning development.

This action addresses the symptom (low share price) rather than underlying causes of share price deterioration. While it provides temporary Nasdaq compliance, the fundamental business challenges likely remain unaddressed. Long-term share price sustainability will depend on operational improvements and financial performance, not financial engineering.

FUZHOU, China, May 27, 2025 /PRNewswire/ -- E-Home Household Service Holdings Limited (Nasdaq: EJH) (the "Company" or "E-Home"), a provider of integrated household services in China, today announced that at an extraordinary general meeting of the Company held on May 1, 2025 (the "Meeting"), its shareholders have approved the resolution of a share consolidation of the issued and authorized ordinary shares of the Company at a ratio of not less than one (1)-for-two (2) and not more than one (1)-for-fifty (50) (the "Range"), with the exact ratio to be set at a whole number within this Range to be determined by the Board of the Directors of the Company (the "Board") in its sole discretion within 180 calendar days after the date of passing of these resolutions (the "Share Consolidation").

On May 8, 2025, the Board determined the ratio for Share Consolidation to be one (1)- for- fifty (50) and to round up the fractions of the issued consolidated shares resulting from the Share Consolidation. The Company's ordinary shares will begin to trade on the NASDAQ Stock Market on the post-consolidation basis under the symbol "EJH" on May 30, 2025. The current pre-split number of shares of commons stock outstanding is 183,690,171 and the post-split number of shares outstanding will be approximately 3,673,850.  The new CUSIP number for the Company's ordinary shares post-consolidation is G2952X153. The Share Consolidation is primarily being effectuated to comply with Nasdaq Marketplace Rule 5550(a)(2) related to the minimum bid price per share of the Company's ordinary shares. 

The Company's shareholders will receive one post-consolidation ordinary share for every fifty pre-consolidation ordinary shares held by them. Immediately after the Share Consolidation, each shareholder's percentage ownership interest in the Company and proportional voting power will remain unchanged, except for minor changes and adjustments that will result from the treatment of fractional shares. No fractional shares will be issued and the fractional shares will be round up in connection with the Share Consolidation. The rights of the holders of ordinary shares will be substantially unaffected by the Share Consolidation. Shareholders who are holding their shares in electronic form at brokerage firms do not need to take any action, as the effect of the Share Consolidation will automatically be reflected in their brokerage accounts.

About E-Home Household Service Holdings Limited

Established in 2014, E-Home Household Service Holdings Limited is a Nasdaq-listed household service company based in Fuzhou, China. The Company, through its website and WeChat platform "e-home", provides integrated household services, including 1) Installation and maintenance of home appliances and smart homes; 2) Housekeeping, nanny, confinement nurse and cleaning services; 3) Cleaning of public establishments.

E-Home has become a modern enterprise of comprehensive service for family life. The Company always adheres to the business philosophy of "solving every issue of customers with heart", and to the code of conduct of "doing everything well with heart". The Company aims to set the benchmark of the household service industry in China. For more information, visit the Company's website at http://www.ej111.com/ir.html

Forward-Looking Statement

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update 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 consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors.

Cision View original content:https://www.prnewswire.com/news-releases/e-home-household-service-holdings-limited-announces-share-consolidation-302465939.html

SOURCE E-Home Household Service Holdings Limited

FAQ

What is the ratio of EJH's share consolidation announced in May 2025?

E-Home announced a 1-for-50 share consolidation, meaning shareholders will receive one post-consolidation share for every fifty pre-consolidation shares held.

When will EJH's share consolidation take effect?

The share consolidation will take effect on May 30, 2025, when EJH shares will begin trading on a post-consolidation basis on the Nasdaq Stock Market.

Why is E-Home Household Service conducting a share consolidation?

The primary reason for the share consolidation is to comply with Nasdaq Marketplace Rule 5550(a)(2) related to the minimum bid price per share requirements.

How many shares will EJH have outstanding after the consolidation?

After the 1-for-50 share consolidation, EJH will have approximately 3,673,850 shares outstanding, reduced from 183,690,171 shares.

Do EJH shareholders need to take any action for the share consolidation?

Shareholders holding shares in electronic form at brokerage firms do not need to take any action, as the consolidation will be automatically reflected in their accounts.
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800.37k
183.62M
0.79%
4.9%
7.93%
Personal Services
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