STOCK TITAN

ReTo Eco-Solutions, Inc. Announces Share Combination

Rhea-AI Impact
(High)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
ReTo Eco-Solutions, Inc. (Nasdaq: RETO) announced a ten-to-one Share Combination, reducing common shares from 37,451,882 to approximately 3,745,189. The par value per share changed from $0.01 to $0.1, aiming to increase the market price and maintain Nasdaq listing.
Positive
  • None.
Negative
  • None.

The execution of a share combination, commonly known as a reverse stock split, is a strategic maneuver often employed by companies seeking to elevate their stock price to comply with exchange listing requirements. In the case of ReTo Eco-Solutions, this ten-to-one consolidation aims to reduce the total number of shares outstanding, thereby increasing the nominal value of each share. This move is particularly significant as it directly influences the liquidity and market perception of the stock.

From a financial standpoint, while the intrinsic value of the company remains unchanged, the psychological impact on investors can be notable. A higher per-share price could potentially attract a different caliber of investors and improve the stock's reputation, as low-priced shares are often associated with higher risk and volatility. However, this tactic does not address underlying business challenges and may be viewed as a cosmetic change unless accompanied by fundamental improvements in the company's operations and financial health.

Market dynamics suggest that a reverse stock split can serve as a short-term remedy to meet NASDAQ's minimum bid price requirement, but it does not inherently enhance shareholder value. Investors and potential shareholders often scrutinize such actions, seeking assurance that the company is also making substantive strides toward growth and profitability. It's crucial to monitor the market's reception to the share combination over the upcoming quarters, as it may reflect broader confidence or concern in the company's strategic direction.

Historical data indicates mixed outcomes for companies undertaking reverse splits. While some manage to stabilize and grow post-adjustment, others continue to struggle, indicating that the success of such measures is not guaranteed and must be evaluated in the context of the company's specific circumstances and industry trends.

Legally, the decision to implement a share combination without shareholder vote is permissible under the laws of the British Virgin Islands, where ReTo Eco-Solutions is incorporated. This highlights the importance of understanding the regulatory framework and corporate governance standards of different jurisdictions. Shareholders should be aware that their rights and the company's obligations may differ significantly from those in their home countries.

Additionally, the process of exchanging physical stock certificates, as managed by the transfer agent, is a procedural matter that requires careful attention to ensure accuracy and compliance. Shareholders holding physical certificates must actively engage with the transfer agent to adjust their holdings, which underscores the administrative aspect of such corporate actions.

BEIJING, Feb. 27, 2024 /PRNewswire/ -- ReTo Eco-Solutions, Inc. (Nasdaq: RETO) ("ReTo" or the "Company"), a provider of technology solutions and operation services for intelligent ecological environments and Internet of Things technology development services in China and other countries, today announced that on February 1, 2024, its board of directors approved a combination of its common shares on a ten-to-one basis (the "Share Combination"). The Company's common shares will begin trading on a post combination basis on March 1, 2024.

As a result of the Share Combination, each ten (10) pre-combination common shares of the Company will be automatically combined into one (1) common share without any action on the part of the holders, with par value of the common shares of the Company being changed from $0.01 per share to $0.1 per share, and the Company's issued and outstanding common shares will be reduced from 37,451,882 to approximately 3,745,189. The Company's common shares will continue to trade on the Nasdaq Capital Market ("Nasdaq") under the symbol "RETO" under a new CUSIP number – G75271125. The Share Combination is intended to increase the market price per share of the Company's common shares to allow the Company to maintain its Nasdaq listing.

No fractional shares will be issued as a result of the Share Combination. Shareholders who otherwise would be entitled to a fractional share because they hold a number of common shares not evenly divisible by ten will automatically be entitled to receive an additional share of the Company's common shares.

The Share Combination will not be submitted to a vote of the Company's shareholders as a vote was not required under the laws of the British Virgin Islands.

The Company's transfer agent, VStock Transfer, LLC, will act as the exchange agent. Adjustments made to common shares represented by physical stock certificates can be made upon surrender of the certificate to the transfer agent. Please contact VStock Transfer, LLC for further information at (212) 828-8436.

About ReTo Eco-Solutions, Inc.

Founded in 1999, ReTo Eco-Solutions, Inc., through its proprietary technologies, systems and solutions, is striving to bring clean water and fertile soil to communities worldwide. The Company, through its operating subsidiaries in China, is engaged in the ecological restoration and solid waste treatment, manufacturing and distribution of eco-friendly construction materials (aggregates, bricks, pavers and tiles) made from mining waste (iron tailings), and soil remediation materials transformed from solid waste (iron tailings), as well as equipment used for the production of these eco-friendly construction materials and soil remediation materials. In addition, the Company provides consultation, design, project implementation and construction of urban ecological protection projects and parts, engineering support, consulting, technical advice and service, and other project-related solutions for its manufacturing equipment and environmental protection projects. The Company also offers roadside assistance services and technology development services utilizing Internet of Things technologies. For more information, please visit: http://en.retoeco.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties. For example, there can be no assurance that we will be able to regain compliance and maintain our listing on Nasdaq. The reports filed by the Company with the Securities and Exchange Commission discuss these and other import factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:
ReTo Eco-Solutions, Inc.
Angela Hu
Tel: +86-010-64827328
Email: ir@retoeco.com or 310@reit.cc

Cision View original content:https://www.prnewswire.com/news-releases/reto-eco-solutions-inc-announces-share-combination-302070604.html

SOURCE ReTo Eco-Solutions, Inc.

ReTo announced a Share Combination on a ten-to-one basis, reducing common shares and changing the par value per share.

The Company's common shares will start trading on a post combination basis on March 1, 2024.

After the Share Combination, the new CUSIP number for ReTo Eco-Solutions, Inc. (RETO) is G75271125.

The Share Combination was intended to increase the market price per share of the Company's common shares to maintain its Nasdaq listing.

No fractional shares will be issued. Shareholders entitled to a fractional share will receive an additional share of the Company's common shares.
ReTo Eco-Solutions Inc

NASDAQ:RETO

RETO Rankings

RETO Latest News

RETO Stock Data

Clay Building Material and Refractories Manufacturing
Manufacturing
Non-Energy Minerals, Other Metals/Minerals, Manufacturing, Clay Building Material and Refractories Manufacturing