GIBO Holdings Limited Announces Effective Date of Share Consolidation
Rhea-AI Summary
GIBO Holdings (NASDAQ:GIBO), an AIGC animation streaming platform, has announced a 200-for-1 share consolidation of its Class A and Class B ordinary shares, effective August 20, 2025. The consolidation will adjust the par value from US$0.000001 to US$0.0002 per share.
The consolidation, approved by shareholders on August 6, 2025, will affect all issued and outstanding shares uniformly without altering shareholders' percentage ownership. The company's Class A shares will trade on a split-adjusted basis with a new CUSIP number (G38617125). Fractional shares will be rounded up to the nearest whole share, and warrant exercise prices will be proportionally adjusted.
No action is required from registered shareholders or those holding shares through brokers.Positive
- Share consolidation may increase market price per share
- Shareholders' equity percentage remains unchanged
- Automatic rounding up of fractional shares benefits shareholders
- No action required from shareholders for the consolidation
Negative
- Significant reduction in total outstanding shares may affect trading liquidity
- Warrant holders face increased exercise prices due to the consolidation
Insights
GIBO's 200:1 share consolidation aims to boost stock price, typically done to maintain exchange listing requirements or improve trading perception.
GIBO Holdings is implementing a significant 200-for-1 share consolidation (reverse stock split) effective August 20, 2025. This means every 200 shares currently held will be consolidated into a single share, while the par value increases from
This consolidation maintains proportional ownership for all shareholders, with fractional shares rounded up. The company explicitly states their anticipation that this move will increase the market price per share - which reveals the likely motivation behind this action.
A consolidation ratio this substantial (200:1) typically signals that the share price has declined to very low levels. Companies often implement such aggressive reverse splits when facing potential delisting risks from exchanges that maintain minimum price requirements, or when trading as a "penny stock" has created negative market perception. While Nasdaq's minimum bid price requirement is
For investors, while the percentage ownership remains unchanged, this action creates fewer, higher-priced shares. The warrant adjustments ensure option holders maintain proportional rights while exercise prices increase accordingly. The new CUSIP number (G38617125) represents the post-consolidation security identification.
Importantly, no shareholder action is required as positions will automatically adjust to reflect the consolidation, whether held directly or through brokers.
On August 6, 2025, the Company's shareholders voted and approved at the extraordinary general meeting a two-hundred (200)-for-one (1) share consolidation of the Company's issued and unissued Class A ordinary shares and Class B ordinary shares, whereby every 200 authorized issued and unissued Class A ordinary shares, par value
The share consolidation affects all issued and outstanding ordinary shares of the Company. In addition, the share consolidation reduces the number of Class A ordinary shares issuable upon the exercise of the Company's warrants in proportion to the ratio of the share consolidation and causes a proportionate increase in the exercise prices of such warrants. The share consolidation affects all shareholders uniformly and will not alter any shareholder's percentage interest in the Company's equity. No fractional shares will be issued; instead, shareholders who would otherwise be entitled to a fractional share will have their entitlement rounded up to the nearest whole share.
The Company anticipates that the share consolidation will increase the market price per share of the Company's Class A ordinary shares.
Registered shareholders holding pre-consolidated shares of the Company are not required to take any action to receive post- consolidated shares. Shareholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the share consolidation, and will not be required to take any action in connection with the share consolidation.
About GIBO Holdings Limited
GIBO Holdings Limited is a unique and integrated AIGC animation streaming platform with extensive functionalities provided to both viewers and creators that serves a broad community of young people across
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's ability to scale and grow its business, the Company's advantages and expected growth, the Company's ability to source and retain talent, and the Company's cash position, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.
Contact Information
Investor Relations:
Bill Zima
ICR, Inc.
William.zima@icrinc.com
Media Relations:
Edmond Lococo
ICR, Inc.
Edmond.Lococo@icrinc.com
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SOURCE GIBO Holdings Ltd.
FAQ
What is the ratio of GIBO's share consolidation and when is it effective?
How will GIBO's share consolidation affect existing shareholders?
What happens to GIBO's warrant prices after the share consolidation?
What is GIBO's new CUSIP number after the share consolidation?
Do GIBO shareholders need to take any action for the share consolidation?
