Zhongchao Inc. Announces 1-for-2 Share Consolidation

The consolidation is intended to maintain the company's Nasdaq Capital Market listing.

Rhea-AI Summary

Zhongchao (NASDAQ: ZCMD) will implement a 1-for-2 share consolidation, with split-adjusted trading beginning on October 2, 2026.

Every two Class A shares will become one Class A share, and the same ratio applies to Class B shares. The company gives maintaining its Nasdaq Capital Market listing as the objective. Class A shares outstanding will move from 8,666,755 to approximately 4,333,378; Class B shares will move from 206,721 to approximately 103,361, subject to fractional-share rounding. Fractional shares will be rounded up to whole shares. Ownership percentages will remain unchanged except for these adjustments. Shareholders approved the consolidation on September 18, 2026, following board approval on September 10, 2026.

0 points · 0 major

NegativeiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• None.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.1-for-2 share consolidation is intended to maintain Zhongchao's Nasdaq Capital Market listing.

Argus 15 min delay 4 alerts

-4.11% vs previous close $0.86 last price 1.3x rel. volume Open Argus

Details

Market Reaction – ZCMD

$0.85 – $0.90 Day Range

$7.66M Market Cap

On Sep 30, the day this news came out, the latest delayed price for ZCMD is 4.11% below the previous close. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $0.86.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Share consolidation ratio: 1-for-2 Post-consolidation trading begins: October 2, 2026

Share consolidation ratio

1-for-2

Class A and Class B ordinary shares

Post-consolidation trading begins

October 2, 2026

Nasdaq Capital Market

Key Terms

share consolidation, cusip, par value, variable interest entity

4 terms

share consolidation financial

"will effectuate a 1-for-2 share consolidation of the Company's ordinary shares"

Share consolidation is a process where a company reduces the total number of its shares by combining multiple existing shares into a smaller number of higher-value shares. This can make each share more expensive and potentially improve the company’s image. For investors, it often means their ownership remains the same, but the value of each share increases, which can influence how the stock is perceived and traded.

cusip technical

"under a new CUSIP number of G9897X156"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

View in glossary

par value financial

"ordinary shares of US$0.744 par value each"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

variable interest entity financial

"a variable interest entity, Zhongchao Medical Technology (Shanghai) Limited"

A variable interest entity (VIE) is a company structure where one party controls another company’s operations and economic outcomes through contracts or special arrangements instead of owning a majority of its voting shares. For investors, VIEs matter because the controlling party’s financial results, debts and risks can appear in the controller’s reports even though ownership looks separate, so understanding VIEs helps assess true exposure, governance limits and transparency—like spotting a puppet controlled by strings rather than direct ownership.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SHANGHAI, Sept. 30, 2026 /PRNewswire/ -- Zhongchao Inc. (NASDAQ: ZCMD) ("Zhongchao" or the "Company"), a platform-based internet technology company offering services for patients with cancer and other major diseases, today announced that the Company will effectuate a 1-for-2 share consolidation of the Company's ordinary shares of US$0.744 par value each (the "Share Consolidation").

Beginning with the opening of trading on October 2, 2026, the Company's Class A ordinary shares will begin trading on a post-Share Consolidation basis on the Nasdaq Capital Market under the same symbol "ZCMD," but under a new CUSIP number of G9897X156. The objective of the Share Consolidation is to maintain its listing on the Nasdaq Capital Market.

Upon the effectiveness of the Share Consolidation, every two (2) Class A ordinary shares with a par value of US$0.744 each will be consolidated into one (1) Class A ordinary share with a par value of US$0.00001 each, and every two (2) Class B ordinary shares with a par value of US$0.744 each will be consolidated into one (1) Class B ordinary share with a par value of US$0.00001 each. No fractional shares will be issued as a result of the Share Consolidation. Instead, any fractional shares that would have resulted from the Share Consolidation will be rounded up to the next whole number. Immediately prior to the Share Consolidation, as of the date hereof, the Company has a total of 8,666,755 Class A ordinary shares and 206,721 Class B ordinary shares issued and outstanding, respectively. As a result of the Share Consolidation, the Company will have approximately 4,333,378 Class A ordinary shares and 103,361 Class B ordinary shares issued and outstanding, respectively, subject to the rounding up of any fractional shares. The Share Consolidation affects all shareholders uniformly and will not alter any shareholder's percentage interest in the Company's outstanding ordinary shares, except for adjustments that may result from the treatment of fractional shares. The Share Consolidation was approved by the Company's shareholders on September 18, 2026 and by board of directors on September 10, 2026, respectively.

About Zhongchao Inc.

Zhongchao Inc. is an offshore holding company incorporated in the Cayman Islands. It consolidates the financial results of a variable interest entity, Zhongchao Medical Technology (Shanghai) Limited, and its subsidiaries (the "PRC operating entities") through a series of contractual arrangements. Zhongchao Inc. is a platform-based internet technology company offering services to patients with oncology and other major diseases. The PRC operating entities provide online healthcare information, professional training and educational services to healthcare professionals under their "MDMOOC" platform (www.mdmooc.org), offer patient management services in the professional field of tumor and rare diseases through Zhongxin, offer internet healthcare services through Zhixun Internet Hospital and operate an online information platform, Sunshine Health Forums, to general public. More information about the Company can be found at its investor relations website at http://izcmd.com.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the professional training and educational services market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. 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:

At the Company: Pei Xu, CFO
Email: xupei@mdmooc.org
Phone: +86 13901629242

Investor Relations: Sherry Zheng
WAVECREST GROUP INC.
Phone: +1 718-213-7386
Email: sherry@wavecrestipo.com

View original content:https://www.prnewswire.com/news-releases/zhongchao-inc-announces-1-for-2-share-consolidation-302893399.html

SOURCE Zhongchao Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Zhongchao's 1-for-2 share consolidation take effect?

Zhongchao's Class A shares begin trading on a post-consolidation basis on October 2, 2026. Every two Class A shares become one Class A share, and the same consolidation ratio applies to Class B shares.