China SXT Pharmaceuticals, Inc. Announces Share Consolidation

Rhea-AI Summary

China SXT Pharmaceuticals (SXTC) has announced a 1-for-8 share consolidation effective February 25, 2025, aimed at regaining compliance with Nasdaq's minimum bid price requirement of $1.00 per share. The company must maintain a closing bid price above $1.00 for at least ten consecutive trading days by April 1, 2025, to maintain its Nasdaq listing.

The consolidation means every eight ordinary shares will automatically combine into one share, with fractional shares rounded up. All outstanding stock options, warrants, and other rights will be adjusted proportionately. The company will continue trading under the symbol 'SXTC' with a new CUSIP number G2161P157.

Failure to meet the minimum bid requirement could result in delisting from Nasdaq, potentially causing significant adverse effects on the company's securities' value and liquidity.

Positive

• Share consolidation could help maintain Nasdaq listing compliance

Negative

• Risk of potential delisting if $1.00 minimum bid price isn't maintained for 10 consecutive days by April 1, 2025
• Share consolidation indicates underlying stock price weakness
• Possible negative impact on stock liquidity

TAIZHOU, China, Feb. 21, 2025 (GLOBE NEWSWIRE) -- China SXT Pharmaceutics, Inc. (Nasdaq: SXTC) (the “Company” or “SXTC”),  a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces (“TCMPs”), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements (“TCMHS”), today announced that it will effect a share consolidation of its ordinary shares at a ratio of 1-for-8, effective on February 25, 2025 (the “Share Consolidation”). The Company’s ordinary shares are expected to begin trading on a post-consolidation basis at the open of the market session on February 25, 2025. Upon the market opening on February 25, 2025, the Company’s ordinary shares will continue to be traded on The Nasdaq Stock Market under the symbol “SXTC” with the new CUSIP number G2161P157.

The Company’s Board of Directors approved the afore-mentioned Share Consolidation so as to regain compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Stock Market (the “Minimum Bid Price Requirement”). In order to maintain the Company’s listing on the Nasdaq Stock Market, the Company’s ordinary shares must have a closing bid price of $1.00 or more for a minimum of ten consecutive trading days by April 1, 2025. There can be no assurance that following the Share Consolidation, the Company’s ordinary shares will remain above $1.00 per share minimum for the requisite period to regain listing compliance. In the event that the Company does not regain compliance with the Minimum Bid Price Requirement, its securities may be subject to delisting from the Nasdaq Stock Market which, in turn, will result in significant adverse effect on the value and liquidity of the Company’s securities.

As a result of the Share Consolidation, every eight (8) shares of the Company’s ordinary shares will be automatically consolidated into one ordinary share. No fractional shares will be issued in connection with the Share Consolidation, and in the event that a shareholder would otherwise be entitled to receive a fractional share upon the Share Consolidation, the number of shares to be received by such shareholder will be rounded up to one ordinary share in lieu of the fractional share that would have resulted from the Share Consolidation. All outstanding stock options, warrants and other rights to purchase the Company's ordinary shares will be adjusted proportionately as a result of the Share Consolidation.

Upon the effectuation of the Share Consolidation, shareholders holding shares through a bank, broker or other nominee will have their shares automatically adjusted to reflect the share consolidation.  Beneficial holders may contact their bank, broker or nominee for more information. Please direct any questions to your broker or the Company's transfer agent, Transhare Corporation, by calling +1 303-662-1122.

About China SXT Pharmaceuticals, Inc.

Founded in 2005 and headquartered in Taizhou City, Jiangsu Province, China, China SXT Pharmaceuticals, Inc. is an innovative pharmaceutical company focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces, which is a type of Traditional Chinese Medicine that has been processed to be ready for use. For more information, please visit www.sxtchina.com.

Safe Harbor Statement

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. These statements include, among others, statements regarding the Company’s plans to regain compliance with the minimum bid price requirement. The Company’s actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important 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:

Feng Zhou, Chief Executive Officer

Email: fzhou@sxtchina.com

FAQ

What is the ratio of SXTC's share consolidation announced for February 2025?

SXTC announced a 1-for-8 share consolidation, meaning every eight ordinary shares will be consolidated into one share.

When will SXTC's share consolidation become effective?

The share consolidation will become effective on February 25, 2025.

What is the deadline for SXTC to meet Nasdaq's minimum bid requirement?

SXTC must maintain a closing bid price above $1.00 for at least ten consecutive trading days by April 1, 2025.

What happens to fractional shares in SXTC's consolidation?

Fractional shares will be rounded up to one ordinary share instead of resulting in partial shares.

What is SXTC's new CUSIP number after the share consolidation?

The new CUSIP number after the share consolidation will be G2161P157.