Graphjet Technology Announces Share Consolidation Date and Details
Graphjet Technology's Share Consolidation Effective Date Announced
Graphjet Technology (NASDAQ: GTI) has made an important announcement regarding its shares. The company's board of directors has set the effective date for a 1-for-60 share consolidation, aimed at optimizing its share structure. This change will see the par value of each ordinary share adjusted from $0.0001 to $0.006. The aim is to enhance the share price and ensure compliance with Nasdaq listing requirements, providing a better trading environment for its investors.
Understanding the Share Consolidation Process
The share consolidation is set to become effective starting at 12:01 a.m. Eastern Time on a specified date, with trading of the adjusted shares expected to commence on the Nasdaq Global Market under the same symbol "GTI". Under this consolidation, shareholders will see their 60 existing ordinary shares transformed into just one share, simplifying their ownership structure. However, this consolidation will not change the percentage ownership stake of any shareholder, although it may lead to fractional share adjustments.
What Happens to Fractional Shares?
In this consolidation, no fractional shares will be circulated. Instead, any fraction of a share will be rounded up, ensuring that every shareholder receives whole shares, reducing unnecessary complications in their holdings.
What Does This Mean for Shareholders?
This strategic move had the approval of the shareholders during an extraordinary general meeting, where details were discussed and the consolidation ratio was finalized. The company has taken steps to ensure a smooth transition for shareholders, including automatic adjustments to their electronic shareholdings managed by Continental Stock Transfer & Trust Company, the appointed exchange agent.
How Will This Impact the Company's Future?
The consolidation is designed not only to meet Nasdaq's continued listing stipulations but also to position Graphjet Technology favorably moving forward. As the company looks ahead to future growth and opportunities, a higher share price could translate to increased investor confidence and interest. Graphjet is pioneering in the sustainable production of graphene and graphite, and getting listed on Nasdaq gives it the visibility needed in a competitive market.
Company Overview: Graphjet Technology
Founded in 2019, Graphjet Technology Sdn. Bhd. is an innovative producer based in Malaysia specializing in the development of advanced graphene and graphite products. It proudly holds the world’s first patented technology to recycle palm kernel shells, a common agricultural byproduct, into high-quality graphene and artificial graphite. This eco-friendly production approach not only signifies a breakthrough in technology but also sets a precedent for sustainable practices in the industry.
The Future of Graphjet Technology
As the company advances towards expanding its market presence, Graphjet is committed to developing its product lines and enhancing manufacturing processes, with a keen focus on sustainability. Increasing awareness and demand for sustainable materials position Graphjet strategically to capture a growing share of the graphene market globally.
Frequently Asked Questions
1. What is the share consolidation ratio for Graphjet Technology?
The share consolidation ratio is set at 1-for-60, meaning every 60 ordinary shares will convert into one ordinary share.
2. When does the share consolidation take effect?
The consolidation is scheduled to take effect at 12:01 a.m. Eastern Time on the specified date.
3. Will shareholders receive fractional shares?
No fractional shares will be issued; any fractions will be rounded up to the nearest whole share.
4. How does this affect my ownership percentage?
Your percentage ownership will remain the same, although adjustments for fractional shares may occur.
5. What is Graphjet Technology known for?
Graphjet Technology is known for its innovative recycling processes that produce high-quality graphene and artificial graphite from palm kernel shells.
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