CIMG Announces 20-for-1 Reverse Stock Split as Part of Strategic Nasdaq Compliance Initiative
Rhea-AI Summary
CIMG (Nasdaq: IMG) announced a 20-for-1 reverse stock split, effective December 5, 2025 at 12:01 a.m. ET, following a Certificate of Change filed December 2, 2025.
At the effective time every 20 shares will combine into 1 share, reducing issued and outstanding shares from 309,667,840 to approximately 15,483,392. The company will continue trading under the symbol IMG on Nasdaq on a split-adjusted basis and the new CUSIP will be 67073S406.
The split also applies to stock options and warrants; fractional entitlements will be rounded up to whole shares. Management frames the split as a measure to maintain Nasdaq continued listing compliance and strengthen long-term capital structure.
Positive
- Reverse split ratio of 20-for-1 effective Dec 5, 2025
- Shares reduced from 309,667,840 to ~15,483,392
- Continued Nasdaq listing under symbol IMG with new CUSIP 67073S406
- Applies to outstanding stock options and warrants; fractions rounded up
Negative
- None.
News Market Reaction
On the day this news was published, IMG declined 33.84%, reflecting a significant negative market reaction. Argus tracked a trough of -37.6% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $19M from the company's valuation, bringing the market cap to $36M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
IMG was down 6.75% while peers were mixed: BOF -8.36%, JVA -4.64%, FARM -0.63%, NAII +0.62%, and HAPP flat, indicating stock-specific pressure rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 08 | Sales contracts | Positive | -14.7% | Subsidiaries signed computing power product sales contracts totaling USD 1.779M. |
| Dec 04 | Award recognition | Positive | -11.8% | Company received a 'Most Investable Company Award' at a capital markets event. |
| Dec 03 | Reverse stock split | Negative | -33.8% | Announced 20-for-1 reverse split to support Nasdaq compliance and capital structure. |
| Nov 28 | Tokenized stock launch | Positive | +4.2% | Tokenized stock tIMG launched for public trading on FlowStocks platform. |
| Nov 04 | Tokenization agreement | Positive | -15.4% | Authorized individual shareholder’s equity tokenization with FlowStocks via tripartite deal. |
Several recent corporate and business development announcements were followed by negative price reactions, with only the tokenized stock launch showing a modest positive move.
This announcement continues an event-heavy period for CIMG. In late October 2025, the company increased authorized shares and later reported equity-building transactions and ongoing capital needs across multiple 10-Q and 8-K filings. In November 2025, CIMG focused on tokenization initiatives with FlowStocks, followed by the public launch of tokenized shares, which saw a modestly positive price reaction. More recently, business updates, an award recognition, and this 20-for-1 reverse split were each followed by notable share price declines, suggesting investors reacted cautiously to these developments.
Market Pulse Summary
The stock dropped -33.8% in the session following this news. A negative reaction despite the strategic framing of the 20-for-1 reverse split fits recent patterns where business and capital markets updates were followed by declines. With shares at $1.89, well below the $28.80 52-week high and just under the $2.06 low, investors may have focused on historical volatility and sizeable share structure changes as the outstanding share count moves from 309,667,840 to roughly 15,483,392.
Key Terms
reverse stock split financial
Nasdaq Capital Market regulatory
CUSIP financial
stock options financial
warrants financial
AI-generated analysis. Not financial advice.
The Company's common stock will continue to trade on The Nasdaq Capital Market ("Nasdaq") under the existing symbol "IMG" and will begin trading on a split-adjusted basis when the market opens on December 5, 2025. The new CUSIP number for the common stock following the reverse stock split will be 67073S406.
At the effective time of the reverse stock split, every 20 shares of the Company's issued and outstanding common stock will be automatically reclassified and combined into 1 share of common stock. This will reduce the number of issued and outstanding shares of common stock from 309,667,840 shares to approximately 15,483,392 shares, subject to adjustment for rounding. The split will also apply to Company common stock issuable upon the exercise of the Company's outstanding stock options and warrants. No fractional shares will be issued; instead, any fractional entitlements will be rounded up to the next highest whole number at the participant level.
The reverse stock split is a proactive measure as part of CIMG's strategic plan to maintain compliance with Nasdaq's continued listing requirements, while also strengthening the Company's long-term capital structure.
About CIMG Inc.
CIMG Inc. is a global business group in the digital health industry, built around cryptocurrency strategies. The company leverages AI and cryptocurrencies (such as Bitcoin and stablecoins) to drive industry growth, helping clients maximize user acquisition and brand management value. Its current portfolio includes brands like Kangduoyuan, Maca-Noni, Qianmao, Huomao, and Coco-mango.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties 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. Shareholders can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. Forward-looking statements contained in this press release are made only as of the date of this press release. 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 that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024, and in other reports and documents that the Company files from time to time with the United States Securities and Exchange Commission (the "SEC"). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the headings "Risk Factors". 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 described in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024, and in other reports and documents that the Company files from time to time with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.
For more information, please contact:
http://www.ccmg.tech
ir@ccmg.tech
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SOURCE CIMG Inc.