Universe Pharmaceuticals INC Announces Share Consolidation

Rhea-AI Summary

Universe Pharmaceuticals (NASDAQ: UPC), a Chinese pharmaceutical producer and distributor, has announced a significant share consolidation plan effective March 24, 2025. The consolidation will combine every 40 ordinary shares (par value US$0.28125) into one ordinary share (par value US$11.25).

The company's shares will continue trading on the Nasdaq Capital Market under the symbol 'UPC' but with a new CUSIP number (G9442G 138). All fractional shares will be rounded up to whole numbers. Post-consolidation, the company's authorized share capital will be US$140,625,000, divided into 11,250,000 ordinary shares and 1,250,000 preferred shares, both with a par value of US$11.25 per share.

Positive

• Higher nominal share price could attract institutional investors
• Consolidation may help maintain Nasdaq listing compliance

Negative

• Share consolidation could indicate underlying financial concerns or attempt to maintain Nasdaq listing requirements
• Significant reduction in total outstanding shares may impact stock liquidity

Jiangxi, China, March 20, 2025 (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 40 ordinary shares with par value of US$0.28125 per share each in the Company’s issued and unissued share capital into one (1) ordinary share with par value of US$11.25 (the “Share Consolidation”). As a result of the Share Consolidation, each 40 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 will be made effective on March 24, 2025. Beginning with the opening of trading on March 24, 2025, 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 138. 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 11,250,000 ordinary shares, par value US$11.25 per share and 1,250,000 preferred shares, par value US$11.25 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 will become effective on March 24, 2025, with trading on post-consolidation basis beginning the same day.

What is the ratio of UPC's share consolidation announced in March 2025?

The consolidation ratio is 40:1, meaning every 40 pre-consolidation shares will be combined into one new share.

How will UPC handle fractional shares in the 2025 share consolidation?

All fractional shares will be rounded up to the whole number of shares.

What will be UPC's new share par value after the March 2025 consolidation?

The par value will increase from US$0.28125 to US$11.25 per share.