Universe Pharmaceuticals INC Announces Share Consolidation

Rhea-AI Summary

Universe Pharmaceuticals (NASDAQ: UPC) announced a 15:1 share consolidation effective November 12, 2024. Each 15 pre-consolidation ordinary shares will automatically combine into one share with a new par value of US$0.28125. Trading under the consolidated shares will begin on November 18, 2024, maintaining the same symbol 'UPC' but with a new CUSIP number G9442G 120. Following consolidation, the company's authorized capital will be US$140,625,000, divided into 450,000,000 ordinary shares and 50,000,000 preferred shares. All fractional shares will be rounded up to whole numbers.

Positive

• None.

Negative

• Share consolidation (reverse split) typically indicates stock price challenges
• Potential signal of company's struggle to maintain NASDAQ listing requirements

Insights

Financial Analyst

This share consolidation, effectively a 15:1 reverse stock split, is a significant corporate action that could impact UPC's market dynamics. The move reduces the number of outstanding shares while proportionally increasing the share price, though the company's market capitalization remains unchanged. Key implications include:

• Potential improved marketability to institutional investors who often avoid low-priced stocks
• Reduced risk of delisting from Nasdaq by maintaining minimum bid requirements
• Higher per-share trading price may decrease volatility and lower transaction costs

However, reverse splits are often viewed cautiously by the market as they can signal financial distress or an attempt to artificially boost share price. The success will largely depend on UPC's underlying business performance and market reception.

Jiangxi, China, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (NASDAQ: UPC) (“Universe Pharmaceuticals” or the “Company”), a pharmaceutical producer and distributor in China, today announced that the Company plans to effect a share consolidation of 15 ordinary shares with par value of US$0.01875 per share each in the Company’s issued and unissued share capital into one (1) ordinary share with par value of US$0.28125 (the “Share Consolidation”). As a result of the Share Consolidation, each 15 pre-consolidation ordinary shares outstanding will automatically combine and convert to one issued and outstanding ordinary share without any action on the part of the shareholders.

The Share Consolidation was made effective at 5:00 p.m. Cayman Islands time on November 12, 2024. Beginning with the opening of trading on November 18, 2024, U.S. Eastern time, the Company’s ordinary shares will begin trading on a post-Share Consolidation basis on the Nasdaq Capital Market under the same symbol “UPC” but under a new CUSIP number of G9442G 120. No fractional shares will be issued in connection with the Share Consolidation. All fractional shares will be rounded up to the whole number of shares. Immediately following the Share Consolidation, the authorized share capital of the Company will be US$140,625,000 divided into 450,000,000 ordinary shares, par value US$0.28125 per share and 50,000,000 preferred shares, par value US$0.28125 per share.

About Universe Pharmaceuticals INC

Universe Pharmaceuticals INC, headquartered in Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor in China. The Company specializes in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The Company also distributes and sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Currently, the Company’s products are sold in 30 provinces of China. For more information, visit the company’s website at http://www.universe-pharmacy.com/.

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 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 U.S. Securities and Exchange Commission.

For more information, please contact:

Ms. Lin Yang
Chief Financial Officer of Universe Pharmaceuticals INC
lin.yang@universe-pharmacy.com

FAQ

When will Universe Pharmaceuticals (UPC) share consolidation take effect?

The share consolidation became effective at 5:00 p.m. Cayman Islands time on November 12, 2024, with post-consolidation trading beginning on November 18, 2024.

What is the ratio of Universe Pharmaceuticals (UPC) share consolidation?

The share consolidation ratio is 15:1, meaning every 15 pre-consolidation shares will be combined into one new share.

Will Universe Pharmaceuticals (UPC) stock symbol change after consolidation?

No, the stock will continue trading under the same symbol 'UPC' but with a new CUSIP number G9442G 120.

How will fractional shares be handled in UPC's share consolidation?

All fractional shares resulting from the consolidation will be rounded up to the nearest whole number of shares.