STOCK TITAN

Hitek Announces 1-for-3 Reverse Split

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Hitek (Nasdaq: HKIT) approved a 1-for-3 reverse split of its Class A ordinary shares, effective May 29, 2026. Shares will trade on a split-adjusted basis on Nasdaq under ticker HKIT with new CUSIP G45139121.

Every three Class A shares will combine into one, par value per Class A share will change from $0.005 to $0.015, and no fractional shares will be issued, with any fraction rounded up to the nearest whole share. Authorized share capital remains US$316,000, reclassified into 20,000,000 Class A, 150,000,000 Class B, and 10,000,000 preference shares. Issued Class A shares will decrease from 2,324,420 to about 774,807, while 8,192,000 Class B shares remain unchanged.

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Positive

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Negative

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News Market Reaction – HKIT

-23.23%
18 alerts
-23.23% News Effect
-27.0% Trough in 24 min
-$2M Valuation Impact
$6.76M Market Cap
0.2x Rel. Volume

On the day this news was published, HKIT declined 23.23%, reflecting a significant negative market reaction. Argus tracked a trough of -27.0% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $6.76M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -23.2% in the session following this news. A negative reaction despite the mechani...
Analysis

The stock dropped -23.2% in the session following this news. A negative reaction despite the mechanical nature of a 1-for-3 reverse split would fit the pattern seen around the 50-for-1 consolidation and the $3.0M offering, which both preceded declines. With shares trading far below the $209 52-week high and well under the $70.6 200-day MA, additional weakness could have reflected ongoing concern about prior dilution and repeated share structure adjustments.

Key Figures

Reverse split ratio: 1-for-3 Prior reverse split: 1-for-50 Par value change: $0.005 to $0.015 +5 more
8 metrics
Reverse split ratio 1-for-3 Class A ordinary shares effective May 29, 2026
Prior reverse split 1-for-50 Reverse split effectuated on April 6, 2026
Par value change $0.005 to $0.015 Par value per Class A Ordinary Share after 1-for-3 split
Authorized share capital US$316,000 Total authorized capital remains unchanged after split
Authorized Class A shares 20,000,000 shares Class A Ordinary Shares, par value US$0.015 per share
Authorized Class B shares 150,000,000 shares Class B ordinary shares, par value US$0.0001 per share
Pre-split Class A outstanding 2,324,420 shares Issued and outstanding before 1-for-3 reverse split
Post-split Class A expected 774,807 shares Expected issued and outstanding after 1-for-3 reverse split

Historical Context

3 past events · Latest: Apr 24 (Positive)
Pattern 3 events
Date Event Sentiment 24h Move Catalyst
Apr 24 Earnings results Positive -1.0% Fiscal 2025 revenue growth and swing to net income vs prior loss.
Apr 01 Share consolidation Negative -15.8% 50-for-1 consolidation to meet Nasdaq bid price requirements.
Mar 27 Registered offering Negative -5.2% Pricing of $3M registered direct offering at $0.03 per share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent dilution and share structure actions, including a large registered direct offering and a 50-for-1 consolidation, both saw clearly negative price reactions, while earnings with revenue growth produced only a mild decline.

Recent Company History

Over recent months, Hitek’s news flow centered on capital raising and share structure changes. In March 2026, a registered direct offering of $3.0 million at $0.03 per share led to a -5.17% move. On April 1, 2026, a 50-for-1 share consolidation to address Nasdaq bid requirements was followed by a -15.83% reaction. Fiscal 2025 results reported on April 24, 2026 showed revenue growth and a return to net income, yet the stock slipped 1%. Today’s 1-for-3 reverse split extends this sequence of share structure adjustments.

Key Terms

reverse split, cusip, par value
3 terms
reverse split financial
"announced today that it will effect a reverse split (the "Reverse Split")"
A reverse split is when a company reduces the number of its outstanding shares by combining several existing shares into one new share, so the price per share rises proportionally while the company’s overall value stays the same. Investors care because it can make a stock appear more respectable or meet exchange rules — like turning many small coins into a single larger bill — but it can also signal financial trouble and often affects trading liquidity and investor perception.
cusip financial
"on a split-adjusted basis under the same trading symbol, "HKIT," and a new CUSIP number"
A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.
View in glossary
par value financial
"the par value of each Class A Ordinary Share will be changed from $0.005 to $0.015"
Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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XIAMEN, China, May 26, 2026 /PRNewswire/ -- Hitek Global Inc. (Nasdaq: HKIT) (the "Company"), an information technology consulting and solutions provider, announced today that it will effect a reverse split (the "Reverse Split") at a ratio of 1-for-3, to be effective on May 29, 2026. Beginning with the opening of trading on May 29, 2026, the Company's Class A ordinary shares ("Class A Ordinary Shares") will begin trading on the Nasdaq Capital Market on a split-adjusted basis under the same trading symbol, "HKIT," and a new CUSIP number, G45139121.

On November 24, 2025, at the 2025 Annual General Meeting of Shareholders, the Company's shareholders authorized the board of directors of the Company (the "Board") to effect one or more reverse splits of the Company's Class A Ordinary Shares at an aggregate cumulative ratio ranging from 1-for-40 to 1-for-5,000 within two years following the date of the meeting, with the Board having discretion to determine the specific ratio or ratios and the timing of any such reverse split(s). On April 6, 2026, the Company effectuated a reverse split at a ratio of 1-for-50. On May 4, 2026, the Board approved the Reverse Split.

Upon the Reverse Split becoming effective, every three issued and unissued Class A Ordinary Shares will be automatically combined into one Class A Ordinary Share. Following the Reverse Split, the par value of each Class A Ordinary Share will be changed from $0.005 to $0.015. No fractional shares will be issued in connection with the Reverse Split. Any fractional share resulting from the Reverse Split will be rounded up to the nearest whole share at the participant level. The Company's total authorized share capital will remain unchanged at US$316,000 and will be reclassified into (i) 20,000,000 Class A Ordinary Shares, par value US$0.015 per share, (ii) 150,000,000 Class B ordinary shares, par value US$0.0001 per share, and (iii) 10,000,000 preference shares, par value US$0.0001 per share. Prior to the Reverse Split, there were 2,324,420 Class A Ordinary Shares and 8,192,000 Class B ordinary shares issued and outstanding; following the Reverse Split, the Company expects that there will be 774,807 Class A Ordinary Shares and 8,192,000 Class B Ordinary Shares issued and outstanding.

About Hitek Global Inc.

Hitek Global Inc., headquartered in Xiamen, China, is an information technology ("IT") consulting and solutions service provider in China. The Company operates two lines of business: (1) services for small and medium-sized businesses, consisting of Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS services, and IT services, and (2) services for large businesses, consisting of hardware sales and software sales. The Company's vision is to become a one-stop destination for comprehensive IT consulting and other business consulting services in China. For more information, please visit the Company's website at http://www.xmhitek.com/

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. 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. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. 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 review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

Cision View original content:https://www.prnewswire.com/news-releases/hitek-announces-1-for-3-reverse-split-302782080.html

SOURCE HITEK GLOBAL INC

FAQ

What is Hitek (HKIT) 1-for-3 reverse stock split effective May 29, 2026?

Hitek is implementing a 1-for-3 reverse split of its Class A ordinary shares effective May 29, 2026. According to Hitek, every three existing Class A shares will automatically combine into one share, with trading continuing on Nasdaq on a split-adjusted basis under symbol HKIT.

How will Hitek (HKIT) 1-for-3 reverse split affect the number of shares outstanding?

The reverse split will reduce outstanding Class A shares while leaving Class B shares unchanged. According to Hitek, Class A shares will decline from 2,324,420 to approximately 774,807, while 8,192,000 Class B ordinary shares will remain issued and outstanding after the split.

What happens to fractional shares in the Hitek (HKIT) 1-for-3 reverse split?

No fractional Class A shares will be issued in Hitek’s 1-for-3 reverse split. According to Hitek, any fractional share position resulting from the reverse split will be rounded up to the nearest whole share at the participant level, simplifying account holdings for affected shareholders.

Will Hitek (HKIT) change its ticker or CUSIP after the May 29, 2026 reverse split?

Hitek will keep its Nasdaq ticker HKIT but will use a new CUSIP number after the split. According to Hitek, Class A shares will trade split-adjusted under HKIT with new CUSIP G45139121 starting at the market open on May 29, 2026.

How does the Hitek (HKIT) reverse split change par value and authorized share capital?

The reverse split increases the par value of each Class A share while leaving total authorized capital unchanged. According to Hitek, par value will move from $0.005 to $0.015 per Class A share, with total authorized capital staying at US$316,000 but reclassified among share classes.

What prior reverse split did Hitek (HKIT) complete before the 1-for-3 split?

Hitek previously completed a separate reverse split before this 1-for-3 action. According to Hitek, a 1-for-50 reverse split of Class A ordinary shares was effectuated on April 6, 2026, under shareholder authority granted at the November 24, 2025 annual general meeting.