X3 Holdings Announces Share Consolidation

Rhea-AI Summary

X3 Holdings (Nasdaq: XTKG) announces a 1-for-20 share consolidation effective November 22, 2024. Every twenty ordinary shares will be automatically consolidated into one share, with the stock continuing to trade on Nasdaq under the symbol 'XTKG' but with a new CUSIP number G72007134. Outstanding warrants and equity rights will be adjusted proportionally. Fractional shares will be rounded up to one ordinary share. Shareholders with electronic holdings in brokerage accounts need not take action as changes will be reflected automatically.

Positive

• None.

Negative

• Implementation of 1-for-20 reverse stock split indicates potential share price compliance issues
• Share consolidation could signal company's struggle to maintain minimum bid requirements for Nasdaq listing

Insights

Financial Analyst

This 1-for-20 share consolidation is a significant defensive move, likely aimed at maintaining Nasdaq listing compliance by boosting the share price. With a market cap of just $39.9M, this reverse split suggests the company is struggling with a low stock price. While technically neutral from a market value perspective, reverse splits often signal underlying financial distress and typically face negative market sentiment. Historical patterns show that companies implementing such aggressive ratios (1:20) frequently experience continued share price decline post-consolidation. Shareholders should note that while their share count will decrease by 95%, their ownership percentage remains unchanged. The key concern here is whether this move will provide sustainable price support or merely delay potential delisting risks.

SINGAPORE, Nov. 20, 2024 /PRNewswire/ -- X3 Holdings Co., Ltd. (Nasdaq: XTKG) (the "Company" or "XTKG"), a global provider of digital solutions and technology services spanning diverse industries, today announced that it will effect a share consolidation of its ordinary shares at a ratio of 1-for-20, effective on November 22, 2024 (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 November 22, 2024. Upon the market opening on November 22, 2024, the Company's ordinary shares will continue to be traded on The Nasdaq Capital Market under the symbol "XTKG" with the new CUSIP number G72007134.

As a result of the Share Consolidation, every twenty (20) shares of the Company's ordinary shares will be automatically consolidated into one ordinary share. Outstanding warrants and other outstanding equity rights will be proportionately adjusted to reflect the Share Consolidation. 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. Shareholders who are holding their shares in electronic form at brokerage firms do not need to take any action, as the effect of the Share Consolidation will automatically be reflected in their brokerage accounts.

About X3 Holdings

 X3 Holdings Co., Ltd. (Nasdaq: XTKG) is a global provider of digital solutions and technology services spanning diverse industries. The Company is operating across diversified business segments in digital technologies, cryptomining operations, renewable energy and agriculture technologies. X3 Holdings is headquartered in Singapore with subsidiaries and operations globally. For additional information, please visit www.x3holdings.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.

View original content:https://www.prnewswire.com/news-releases/x3-holdings-announces-share-consolidation-302309347.html

SOURCE X3 Holdings Co., Ltd.

FAQ

When will X3 Holdings (XTKG) implement its 1-for-20 share consolidation?

X3 Holdings will implement its 1-for-20 share consolidation effective November 22, 2024, with trading on post-consolidation basis beginning at market open on the same day.

How will the XTKG share consolidation affect fractional shares?

Fractional shares resulting from the 1-for-20 share consolidation will be rounded up to one ordinary share, with no fractional shares being issued.

Do XTKG shareholders need to take any action for the share consolidation?

Shareholders holding shares in electronic form at brokerage firms do not need to take any action, as the consolidation will be automatically reflected in their accounts.