ZETA NETWORK GROUP ANNOUNCES REVERSE SHARE SPLIT

Rhea-AI Summary

Zeta Network Group (Nasdaq: ZNB) announced a 100-for-1 reverse share split approved February 10, 2026, effective March 12, 2026, to regain compliance with Nasdaq Marketplace Rule 5550(a)(2). Beginning March 12, 2026, shares will trade on a split-adjusted basis under symbol ZNB with new CUSIP G2287A142.

The Company's authorized share capital is re-denominated so Class A par value rises to $0.25 and issued Class A shares change from 158,079,166 to approximately 1,580,792; Class B shares change from 480 to 5.

Positive

• 100-for-1 consolidation effective March 12, 2026
• Issued Class A shares reduced to ~1,580,792
• Action intended to regain Nasdaq compliance under Rule 5550(a)(2)

Negative

• New CUSIP G2287A142 may cause temporary trading or settlement confusion
• Authorized and issued par value increases to $0.25, changing share denomination

News Market Reaction – ZNB

-11.34%

8 alerts

-11.34% News Effect

-36.7% Trough in 30 hr 50 min

-$4M Valuation Impact

$33M Market Cap

0.2x Rel. Volume

On the day this news was published, ZNB declined 11.34%, reflecting a significant negative market reaction. Argus tracked a trough of -36.7% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $33M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Reverse split ratio: 100-for-1 Authorized capital: US$32,000,000.00 New authorized Class A: 112,000,000 shares +5 more

8 metrics

Reverse split ratio 100-for-1 Board-approved share consolidation ratio effective March 12, 2026

Authorized capital US$32,000,000.00 Total authorized share capital before and after consolidation

New authorized Class A 112,000,000 shares Authorized Class A Ordinary Shares post-consolidation at US$0.25 par

New authorized Class B 16,000,000 shares Authorized Class B Ordinary Shares post-consolidation at US$0.25 par

Pre-split Class A outstanding 158,079,166 shares Total issued and outstanding Class A ordinary shares before consolidation

Post-split Class A outstanding 1,580,792 shares Total issued and outstanding Class A ordinary shares after consolidation

Pre-split Class B outstanding 480 shares Total issued and outstanding Class B ordinary shares before consolidation

Post-split Class B outstanding 5 shares Total issued and outstanding Class B ordinary shares after consolidation

Market Reality Check

Price: $0.1078 Vol: Volume 388,381 is 0.12x 2...

low vol

$0.1078 Last Close

Volume Volume 388,381 is 0.12x 20-day average of 3,163,084, indicating muted trading interest pre-announcement. low

Technical Trading at $0.2204, below 200-day MA of $1.04, 95.79% below 52-week high and 19.14% above 52-week low.

Peers on Argus

No peers listed and no names in the momentum scanner; ZNB’s move appears driven ...

No peers listed and no names in the momentum scanner; ZNB’s move appears driven by company-specific factors such as the reverse split and listing-compliance concerns.

Historical Context

5 past events · Latest: Feb 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 04	Strategic initiative	Positive	+1.1%	Outlined focus on real-world asset tokenisation for institutional treasury strategy.
Feb 04	Strategic initiative	Positive	+1.1%	Evaluated real-world asset tokenisation to diversify and optimize digital-asset treasury.
Oct 15	Financing transaction	Positive	-9.0%	Large Bitcoin-backed private placement intended to strengthen balance sheet and treasury.
Oct 10	Leadership change	Positive	-6.5%	Appointed Chief Investment Officer to oversee institutional digital-asset strategy.
Oct 08	Equity offering	Negative	-44.1%	Announced $15 million registered direct offering of Class A shares and pre-funded warrants.

Pattern Detected

Financing-related news has often seen negative price reactions, while strategic updates around digital-asset strategy have produced modest gains, showing mixed alignment between corporate messaging and market response.

Recent Company History

Over the last six months, Zeta Network Group has shifted toward Bitcoin-centric digital asset finance, combining mining, treasury, and institutional strategies. Capital formation has been significant, including a $15 million registered direct offering and a US$230,837,060.20 Bitcoin-backed private placement in October 2025, both followed by sharp declines. Strategic and governance updates, such as the CIO appointment on October 8, 2025 and RWA tokenisation focus on February 4, 2026, drew mixed-to-mild market reactions. Today’s reverse split fits within this pattern of restructuring and listing-compliance management.

Market Pulse Summary

The stock dropped -11.3% in the session following this news. A negative reaction despite the technic...

Analysis

The stock dropped -11.3% in the session following this news. A negative reaction despite the technical nature of the reverse split would fit prior patterns where capital structure changes and financings, including the $15 million offering and US$230,837,060.20 private placement, preceded selling pressure. The move to roughly 1,580,792 Class A shares outstanding and a higher per-share price does not alter fundamentals by itself, so concerns about dilution history and listing-compliance risk could reinforce downside pressure.

Key Terms

reverse share split, share consolidation, Nasdaq Marketplace Rule 5550(a)(2), CUSIP number

4 terms

reverse share split financial

"Zeta Network Group ... announced that the Company's board of directors approved ... a reverse share split"

A reverse share split is when a company reduces the number of its shares outstanding by combining multiple shares into one, effectively increasing the price of each share. For investors, this can help improve the company's image or meet stock exchange listing requirements, but it does not change the total value of their investment. It’s similar to turning many small pieces of a puzzle into fewer larger pieces—nothing new is added or lost, just rearranged.

share consolidation financial

"the authorised, issued, and outstanding shares of the Company be consolidated on a 100 for 1 ratio"

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.

Nasdaq Marketplace Rule 5550(a)(2) regulatory

"objective of the share consolidation is to enable the Company to regain compliance with Nasdaq Marketplace Rule 5550(a)(2)"

Nasdaq Marketplace Rule 5550(a)(2) sets a minimum share price requirement for companies listed on the Nasdaq Capital Market, typically requiring that a company’s common stock maintain a closing bid of at least $1.00 per share. It matters to investors because failure to meet this threshold can trigger a delisting review, which is similar to failing a safety inspection: the stock may be removed from the exchange or force corporate actions (like a reverse split) that change liquidity, visibility, and how easy it is to buy or sell the shares.

CUSIP number technical

"will trade ... under the same symbol "ZNB" but under a new CUSIP number"

A CUSIP number is a nine-character code that uniquely identifies a specific U.S. or Canadian stock, bond, or other security, similar to a barcode or a social-security number for a financial instrument. It matters to investors because it removes confusion between similar securities, ensures trades and settlements are applied to the correct issue, and helps locate official documents and transaction records quickly.

AI-generated analysis. Not financial advice.

NEW YORK, March 9, 2026 /PRNewswire/ -- Zeta Network Group ("Zeta" or the "Company") (Nasdaq: ZNB), today announced that the Company's board of directors approved on February 10, 2026, that the authorised, issued, and outstanding shares of the Company be consolidated on a 100 for 1 ratio with the marketplace effective date of March 12, 2026.

The objective of the share consolidation is to enable the Company to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintain its listing on Nasdaq.

Beginning with the opening of trading on March 12, 2026, the Company's Class A ordinary shares will trade on the Nasdaq Capital Market on a split-adjusted basis, under the same symbol "ZNB" but under a new CUSIP number, G2287A142.

As a result of the share consolidation, each 100 Class A ordinary shares outstanding will automatically combine and convert to one issued and outstanding Class A ordinary share without any action on the part of the shareholders. No fractional shares will be issued to any shareholders in connection with the share consolidation, and each shareholder will be entitled to receive one share of the Company in lieu of the fractional share of that class that would have resulted from the share consolidation.

At the time the share consolidation is effective, the Company's authorized share capital is changed from USD$32,000,000.00 divided into 11,200,000,000 granted Class A Ordinary shares with a nominal or par value of USD$0.0025 and 1,600,000,000 Class B Ordinary shares with a nominal or par value of USD$0.0025 each, to USD$32,000,000.00 divided into 112,000,000 Class A Ordinary shares with a nominal or par value of USD$0.25 each and 16,000,000 Class B Ordinary shares with a nominal or par value of USD$0.25 each. The Company's total issued and outstanding Class A ordinary shares will be changed from 158,079,166 Class A ordinary shares with a par value of US$0.0025 per share to approximately 1,580,792 Class A ordinary shares with a par value of US$0.25 per share. The Company's total issued and outstanding Class B ordinary shares will be changed from 480 Class B ordinary shares with a par value of US$0.0025 per share to 5 Class B ordinary shares with a par value of US$0.25 per share.

About Zeta Network Group (Nasdaq: ZNB)

Zeta Network Group (Nasdaq: ZNB) is a U.S.-listed digital infrastructure and financial technology company pioneering the convergence of traditional finance and the digital asset economy. The Company is developing a Bitcoin-centric institutional finance platform that integrates digital asset treasury management, Bitcoin liquidity aggregation, and sustainable Bitcoin mining operations, all within a regulated Nasdaq framework. 

Led by a global team of finance and technology experts, Zeta is redefining institutional digital finance by merging the governance and transparency of a public company with the innovation and scalability of blockchain to create a trusted bridge between capital markets and decentralized finance.

For more information, visit ir.thezetanetwork.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include, among other things, statements regarding anticipated financial performance, strategy, and the potential impact of the transaction described herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Zeta Network Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View original content:https://www.prnewswire.com/news-releases/zeta-network-group-announces-reverse-share-split-302707530.html

SOURCE Zeta Network Group

FAQ

What exactly is the ZNB 100-for-1 reverse share split and when is it effective?

The reverse split consolidates every 100 Class A shares into one share, effective March 12, 2026. According to the company, the consolidation was approved February 10, 2026, and trading will reflect the split-adjusted share count under symbol ZNB.

How many ZNB Class A shares will be outstanding after the reverse split?

After the consolidation, ZNB will have approximately 1,580,792 Class A shares outstanding. According to the company, this results from converting 158,079,166 pre-split shares at the 100-for-1 ratio.

Why did Zeta Network Group (ZNB) perform the reverse split under Nasdaq rules?

Zeta executed the 100-for-1 consolidation to regain compliance with Nasdaq Marketplace Rule 5550(a)(2). According to the company, maintaining listing status on Nasdaq was the objective of the share consolidation.

Will ZNB shares trade under the same ticker or a new identifier after the split?

Shares will continue to trade under the same ticker ZNB but on a split-adjusted basis and a new CUSIP. According to the company, the new CUSIP will be G2287A142 beginning March 12, 2026.