High-Trend International Group Announces the Reverse Split Record Date

Rhea-AI Summary

High-Trend International Group (NASDAQ: HTCO), a global ocean technology company, has announced a 1-for-25 reverse stock split effective August 7, 2025, at 4:01 PM ET. The company's shares will begin trading on a split-adjusted basis on August 8, 2025.

The reverse split will reduce outstanding shares from approximately 140 million to 5.6 million. This strategic move aims to meet Nasdaq's minimum bid requirement of $1.00 per share to maintain listing on The Nasdaq Capital Market. The stock will continue trading under the symbol "HTCO" but with a new CUSIP number: G1901X 116.

Shareholders' percentage ownership will remain unchanged, and those holding shares in book-entry form or through brokers will see the impact reflected in their accounts after August 8.

Positive

• Strategic move to maintain Nasdaq listing compliance
• No impact on shareholders' percentage ownership
• Automatic process requiring no action from shareholders with book-entry shares

Negative

• Indicates underlying share price weakness necessitating the reverse split
• Significant reduction in outstanding shares from 140M to 5.6M
• Risk of not meeting minimum bid requirement despite the reverse split

Insights

Capital Markets Specialist

HTCO's 1-for-25 reverse split aims to maintain Nasdaq listing by boosting share price above $1, effective August 8.

High-Trend International Group is executing a 1-for-25 reverse stock split, primarily to meet Nasdaq's minimum bid requirement of $1.00 per share for continued listing. This defensive corporate action suggests the company's shares have been trading below this critical threshold, putting its Nasdaq Capital Market listing at risk.

The mechanics involve consolidating every 25 shares into 1 share, reducing the outstanding share count from approximately 140 million to 5.6 million. While this mathematically increases the stock price by 25x, it's crucial to understand that this creates no fundamental value - it merely reconfigures existing equity. The post-split share will have a par value of $0.0025, up from the current $0.0001.

This corporate action carries significance beyond cosmetics. Maintaining a Nasdaq listing provides critical benefits: enhanced liquidity, broader investor access, greater institutional participation, and improved financing options. Delisting would force the stock to less regulated markets with reduced visibility and trading volume.

However, reverse splits often signal underlying problems. Companies typically resort to them after significant share price deterioration. While this maneuver buys compliance time, it doesn't address the fundamental issues that caused the price decline. Without meaningful operational improvements, many companies that implement reverse splits continue to experience downward price pressure post-split.

NEW YORK, Aug. 4, 2025 /PRNewswire/ -- High-Trend International Group (the "Registrant" or the "Company") (NASDAQ: HTCO), a global ocean technology company is reporting that its board of directors (the "Board") has approved a reverse stock split (the "Reverse Stock Split") of the Company's Class A ordinary shares, a par value of US$0.0001 each (the "Ordinary Shares"), at a ratio of 1-for-25 (the "Reverse Split Ratio"), with a post-Reverse Stock Split par value of US$0.0025.

The Company is undertaking the Reverse Stock Split with the objective of meeting the minimum $1.00 per Ordinary Share bid requirement for maintaining the listing of the Ordinary Shares on The Nasdaq Capital Market.

The Reverse Stock Split will be effective at 04:01 p.m. (ET) on Thursday August 7, 2025 (the "Record Date") and the Ordinary Shares will begin trading on a split-adjusted basis when the Nasdaq Stock Market LLC opens for trading on Friday, August 8, 2025. The Ordinary Shares will continue to trade on The Nasdaq Capital Market under the trading symbol "HTCO" but will trade under the following new CUSIP number: G1901X 116.

As a result of the Reverse Stock Split, every 25 Ordinary Shares held as of the Record Date will be automatically combined into one Ordinary Share. The number of outstanding Ordinary Shares will be reduced from approximately 140,000,000 Ordinary Shares to approximately 5,600,000 Ordinary Shares. No fractional shares will be created or issued in connection with the reverse stock split.

The Reverse Stock Split will affect all holders of Ordinary Shares uniformly and will not affect any shareholder's percentage ownership interest in the Company.

Shareholders with Ordinary Shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the Reverse Stock Split reflected in their accounts on or after August 8, 2025. Such beneficial holders may contact their bank, broker, or nominee for more information.

Forward-Looking Statements

This current report on Form 6-K contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements can be also identified by terminology such as "may," "might," "could," "will," "aims," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements.

These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. A detailed discussion of factors that could cause or contribute to such differences and other risks that affect our business is included in filings we make with the Commission from time to time, including our most recent report on Form 20-F, particularly under the heading "Risk Factors".

 

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SOURCE High-Trend International Group

FAQ

What is the reverse stock split ratio for High-Trend International Group (HTCO)?

High-Trend International Group announced a 1-for-25 reverse stock split, meaning every 25 shares will be combined into one share.

When will HTCO's reverse stock split take effect?

The reverse stock split will become effective at 4:01 PM ET on August 7, 2025, with split-adjusted trading beginning on August 8, 2025.

Why is High-Trend International Group (HTCO) doing a reverse stock split?

HTCO is implementing the reverse split to meet Nasdaq's minimum bid requirement of $1.00 per share to maintain its listing on The Nasdaq Capital Market.

How many shares will HTCO have outstanding after the reverse split?

After the reverse split, HTCO's outstanding shares will be reduced from approximately 140 million to 5.6 million shares.

Do HTCO shareholders need to take any action for the reverse stock split?

Shareholders with shares in book-entry form or held through brokers do not need to take any action. The impact will be automatically reflected in their accounts after August 8, 2025.