Zeta Network Group (NASDAQ: ZNB) clears reverse split, sub-division and 2026 equity plan
Rhea-AI Filing Summary
Zeta Network Group reported the results of an extraordinary general meeting where all proposals passed with 135,786,506 votes in favor and none against or abstaining. Shareholders authorized the board to carry out a reverse share split and share consolidation of the Company’s authorized and issued share capital at a ratio between one-for-five and up to one-for-one hundred, with par value per share adjusted accordingly. They also approved a related share sub-division to reset the capital structure, illustrated by an example moving the authorized capital from 112,000,000 Class A and 16,000,000 Class B shares at US$0.25 par value each to 700,000,000 Class A and 100,000,000 Class B shares at US$0.04 par value each. Special resolutions were passed to adopt new amended and restated memoranda and articles of association to implement these changes. In addition, shareholders approved a 2026 Equity Incentive Plan, reserving 26,695,000 Class A Ordinary Shares for future issuance, and an adjournment proposal.
Positive
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Insights
Zeta Network Group shareholders approved wide-ranging flexibility to reshape share capital and adopt a sizable equity plan.
The meeting outcomes give Zeta Network Group strong tools to adjust its capital structure. The approved reverse share split and share consolidation, at ratios between one-for-five and up to one-for-one hundred, allow the board to reduce the number of shares and increase par value per share while keeping total authorized capital at
These steps are supported by special resolutions adopting new amended and restated memoranda and articles of association, aligning the company’s governing documents with the restructured share capital. The 2026 Equity Incentive Plan reserves 26,695,000 Class A Ordinary Shares for future issuance, which could represent a meaningful pool for employee and management incentives, depending on future grants. Actual effects on existing holders will depend on the specific consolidation and sub-division ratios chosen by the board and the pace and size of equity awards issued under the plan.
FAQ
What did ZNB shareholders approve at the January 2026 extraordinary general meeting?
Shareholders of Zeta Network Group approved six proposals, including a reverse share split and share consolidation, a related share sub-division, amendments to the memorandum and articles of association to implement these changes, a 2026 Equity Incentive Plan, and an adjournment proposal.
What reverse share split did ZNB authorize in this 6-K filing?
Shareholders authorized the board to effect a reverse share split and share consolidation of the authorized and issued Class A and Class B Ordinary Shares at a ratio of at least one-for-five and up to one-for-one hundred, with a corresponding increase in par value per share.
How will Zeta Network Groups share capital change under the approved consolidation and sub-division example?
Assuming a one-for-one hundred consolidation ratio, the authorized share capital could move from 112,000,000 Class A and 16,000,000 Class B shares at
What is included in ZNBs 2026 Equity Incentive Plan?
The 2026 Equity Incentive Plan includes the reservation of 26,695,000 Class A Ordinary Shares for future issuance in connection with equity-based compensation and related transactions contemplated by the plan.
How many Zeta Network Group shares were represented at the extraordinary general meeting?
Holders of 135,786,506 shares, all Class A Ordinary Shares, were present in person or by proxy, representing approximately 89.76% of the 151,279,646 total outstanding shares as of the
Were there any votes against the ZNB proposals at the meeting?
No. Each of the six proposals, including the reverse share split, share sub-division, articles amendments, 2026 Equity Incentive Plan, and adjournment proposal, received 135,786,506 votes for, with 0 votes against and 0 abstentions.