Yunhong Green CTI Ltd. Announces Execution of Reverse Stock Split

Rhea-AI Summary

Yunhong Green CTI (NASDAQ:YHGJ), a manufacturer of custom film products, foil novelty balloons, and flexible packaging products, has announced a 1-for-10 reverse stock split effective October 1, 2025. The split was approved by stockholders on August 22, 2025.

The reverse split will reduce outstanding shares from approximately 27.8 million to 2.8 million. Trading under the same symbol YHGJ will begin on a split-adjusted basis at 9 a.m. ET on October 1, with a new CUSIP number 98873Q 209. No fractional shares will be issued, with cash payments provided instead.

Positive

• None.

Negative

• Reverse stock split implementation suggests potential concerns about maintaining Nasdaq listing requirements
• Reduction in total shares could impact stock liquidity

Insights

Corporate Finance Specialist

YHGJ's 1-for-10 reverse split aims to boost share price, likely to maintain Nasdaq listing requirements without changing company fundamentals.

Yunhong Green CTI is implementing a 1-for-10 reverse stock split, effective October 1, which will mechanically reduce outstanding shares from approximately 27.8 million to 2.8 million while proportionally increasing the stock price by 10x. This type of financial engineering doesn't alter the company's intrinsic value or market capitalization but does impact its trading dynamics.

The timing suggests this is likely a compliance maneuver to meet Nasdaq's minimum bid price requirement of $1 per share. Reverse splits are typically executed when companies face potential delisting due to prolonged trading below this threshold. While the press release doesn't explicitly state this motivation, it's the most common driver for such actions.

From a shareholder perspective, investors will automatically receive 1 share for every 10 previously held, with cash payments issued for fractional shares. The higher post-split price might reduce liquidity and potentially increase volatility due to the smaller float.

Importantly, while reverse splits themselves are neutral technical adjustments, they often signal underlying financial difficulties that necessitated the action. Markets typically view them cautiously as they're frequently associated with struggling companies. However, the actual impact depends entirely on Yunhong Green's fundamental business performance moving forward, which isn't addressed in this announcement.

Company Stock Will Begin Trading on Split Adjusted Basis October 1, 2025

LAKE BARRINGTON, IL, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Yunhong Green CTI Ltd. (Nasdaq: YHGJ) (“Yunhong Green CTI” or the "Company"), a leading manufacturer of custom film products, foil novelty balloons, and flexible packaging products, today announced that it will proceed with a 1-for-10 reverse stock split of its shares of common stock (the "Reverse Stock Split") following approval by its Board of Directors. The Reverse Stock Split was approved by the Company's stockholders at the annual meeting of stockholders held on August 22, 2025.

The Reverse Stock Split is expected to be effective on October 1, 2025 (the "Effective Time"). The Company's common stock is expected to begin trading on a split-adjusted basis under the same symbol (YHGJ) at around 9 a.m. Eastern Time on October 1, 2025, with the new CUSIP number 98873Q 209.

As of the Effective Time, every 10 issued and outstanding shares of the common stock will be automatically reclassified into one issued and outstanding share of the Company's common stock. This will reduce the number of shares outstanding from approximately 27,788,626 to approximately 2,778,862, subject to adjustment for fractional shares. The Reverse Stock Split will not affect the par value of the common stock. No fractional shares will be issued in connection with the Reverse Stock Split. Holders of common stock will receive a cash payment (without interest) in lieu of any fractional shares.

Equiniti Trust Company, LLC is acting as the exchange agent for the Reverse Stock Split. Registered stockholders holding pre-split shares of the Company's common stock are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, trust or other similar organization will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such organization's particular processes, and will not be required to take any action in connection with the Reverse Stock Split.

Additional information about the Reverse Stock Split and Authorized Share Reduction can be found in the Company's definitive proxy statement filed with the Securities and Exchange Commission (the "SEC") on July 17, 2025 and definitive additional proxy materials filed with the SEC on July 28, 2025, which are available free of charge at the SEC's website, www.sec.gov.

About Yunhong Green CTI Ltd.

Yunhong Green CTI Ltd. is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong Green CTI also distributes balloon-inspired gift items and markets its products throughout the United States. For more information about our business, visit our corporate website at www.ctiindustries.com.

Company Contact:
info@ctiindustries.com
+ 1-847-382-1000

FAQ

When will Yunhong Green CTI's (YHGJ) reverse stock split take effect?

Yunhong Green CTI's reverse stock split will take effect on October 1, 2025, with trading on a split-adjusted basis beginning at 9 a.m. Eastern Time.

What is the ratio of YHGJ's reverse stock split in 2025?

Yunhong Green CTI (YHGJ) will implement a 1-for-10 reverse stock split, meaning every 10 shares will be converted into 1 share.

How many shares will Yunhong Green CTI (YHGJ) have outstanding after the reverse split?

After the reverse split, YHGJ's outstanding shares will be reduced from approximately 27.8 million to 2.8 million shares, subject to adjustment for fractional shares.

Do YHGJ shareholders need to take any action for the reverse stock split?

No, registered stockholders and those owning shares through brokers do not need to take any action. Positions will be automatically adjusted to reflect the reverse split.

What happens to fractional shares in YHGJ's reverse stock split?

Holders of fractional shares will receive a cash payment in lieu of fractional shares resulting from the reverse stock split.