Fitell Corporation Announces Share Consolidation
Fitell Corporation (Nasdaq: FTEL) will effect a share consolidation effective January 8, 2026.
Rhea-AI Summary
Fitell Corporation (Nasdaq: FTEL) will effect a share consolidation effective January 8, 2026. The Company will consolidate Class A shares at a 1-for-8 ratio (par value to US$0.0128) and Class B shares at a 1-for-2 ratio (par value to US$0.0032).
Post-consolidation outstanding shares will be 1,208,349 Class A and 201,250 Class B, down from 9,666,791 and 402,500 respectively. Class A will continue trading on Nasdaq under FTEL with new CUSIP G35150146 at market open on January 8, 2026. Authorized capital will be $2,000,000 divided into 154,237,500 Class A and 8,050,000 Class B shares.
Positive
- Class A share count reduced from 9,666,791 to 1,208,349
- Class B share count reduced from 402,500 to 201,250
- Class A continues trading on Nasdaq under FTEL with new CUSIP G35150146
Negative
- Consolidation does not change shareholder ownership percentage or economic interest
- Potential perception risk: shareholders may view consolidation as a liquidity or market‑profile adjustment
Details
News Market Reaction – FTEL
In the Jan 6 session, FTEL declined 19.21%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Class A consolidation ratio
- 1-for-8
- Share consolidation effective January 8, 2026
- Class B consolidation ratio
- 1-for-2
- Share consolidation effective January 8, 2026
- Class A shares pre-consolidation
- 9,666,791 shares
- Outstanding as of January 5, 2026
- Class A shares post-consolidation
- 1,208,349 shares
- Outstanding after share consolidation
- Class B shares pre-consolidation
- 402,500 shares
- Outstanding as of January 5, 2026
- Class B shares post-consolidation
- 201,250 shares
- Outstanding after share consolidation
- Authorized share capital
- $2,000,000
- Post-consolidation authorized capital
- Authorized Class A shares
- 154,237,500 shares
- Authorized post-consolidation at $0.0128 par value
Historical Context
-
Interim dividend and shareholder loyalty program with staged cash rewards.
-
Launch of 2FCulinaryAI robot chef backed by $50M stablecoin financing.
-
Announcement of interim dividend and loyalty incentives for long-term holders.
-
Authorization of up to $3.0M Class A share repurchase over 24 months.
-
FY2025 results with higher revenue, margins, and sharply reduced net loss.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
par value financial
cusip financial
warrants financial
transfer agent financial
exchange agent financial
street name financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
TAREN POINT, Australia, Jan. 05, 2026 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (the “Company”), today announced that it will effect a share consolidation of (i) its outstanding Class A ordinary shares, par value of
The Share Consolidation was approved by the Company’s shareholders at the Extraordinary General Meeting of Members held on December 12, 2025. Subsequently, the Board of Directors fix the share consolidation ratio by way of written resolutions dated December 16, 2025.
As of January 5, 2026, there were 9,666,791 of the Company’s Class A ordinary shares outstanding and 402,500 Class B ordinary shares outstanding. Effecting the Share Consolidation will reduce the outstanding Class A ordinary shares to 1,208,349 and the outstanding Class B ordinary shares to 201,250. As a result of the Share Consolidation, the Company’s authorized share capital will be
“We are building a company designed for scale, performance, and sustained value creation,” stated Sam Lu, Chief Executive Officer of Fitell Corporation. “The Strengthened equity profile provides greater flexibility and a more robust platform for future value-accretive initiatives. This positions us optimally to consider strategic partnerships, acquisitions, or other capital market activities from a position of strength”.
As a result of the Share Consolidation, every eight (8) shares of the Company’s Class A ordinary shares will be automatically consolidated into one (1) Class A ordinary share and every two (2) shares of the Company’s Class B ordinary shares will be automatically consolidated into one (1) Class B ordinary share. Outstanding warrants and other outstanding equity rights will be proportionately adjusted to reflect the Share Consolidation. No fractional shares will be issued in connection with the Share Consolidation, and in the event that a shareholder would otherwise be entitled to receive a fractional share upon the Share Consolidation, the number of shares to be received by such shareholder will be rounded up to one ordinary share of the same class in lieu of the fractional share that would have resulted from 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.
The Company’s transfer agent, Vstock Transfer LLC, which is also acting as the exchange agent for the Share Consolidation, will send instructions to shareholders of record who hold stock certificates regarding the exchange of their old certificates for new certificates, should they wish to do so. Shareholders who hold their shares in brokerage accounts or “street name” are not required to take action to implement the exchange of their shares.
About Fitell Corporation
Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at www.fitellcorp.com.
Forward-Looking Statements
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events and include, but are not limited to, statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering, and the intended use of proceeds from the offering. These forward-looking statements involve known and unknown risks and uncertainties, including market and other conditions, 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 “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” 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 SEC.
For more information, please contact:
Chief Financial Officer
Edwin Tam
edwin@gymdirect.com.au
Investor Relations
ir@fitellcorp.com
