Tantech Holdings Announces Significant Share Consolidation
Tantech Holdings Announces Share Consolidation Plan
Tantech Holdings Ltd (NASDAQ: TANH), a pioneering company in bamboo charcoal-based products, is taking a significant step to strengthen its position by instituting a share consolidation plan. The Board of Directors has decided to implement a 1-for-40 share consolidation, aiming to comply with NASDAQ listing rules. While the marketplace effective date is set soon, the company is focused on ensuring that shareholders are informed and prepared for this transition.
Purpose of the Share Consolidation
The rationale behind this consolidation is clear: Tantech aims to meet the compliance standards set by NASDAQ's Marketplace Rule. This move is integral for the company to maintain its listing on the exchange and continue operations effectively. By reducing the number of outstanding shares significantly, this strategic decision reflects the company's readiness to adapt to market conditions and uphold its growth trajectory.
Details of the Consolidation
Starting with the trading opening, shareholders will notice that every forty common shares they hold will automatically combine into one share of the new issuance. Importantly, there will be no need for shareholders to take any action regarding this conversion. Tantech will handle the consolidation process seamlessly, ensuring that there are no fractional common shares issued, effectively protecting the interests of all shareholders.
Impact on the Share Count
This consolidation will see Tantech reduce its total outstanding shares from approximately 47.5 million down to about 1.2 million. This dramatic change is designed to sharpen the company's market visibility and enhance share value in the eyes of potential investors. With unlimited authorized shares remaining unchanged, Tantech has the flexibility to grow and respond dynamically to future capital needs.
About Tantech Holdings Ltd
For over a decade, Tantech has specialized in creating and innovating bamboo charcoal products, establishing a strong international sales network. Their acquisition of a 70% stake in Shangchi Automobile bolstered their expansion into vehicle manufacturing, further diversifying their portfolio and revenue streams. In recent developments, Tantech also initiated two new subsidiaries dedicated to producing electric vehicles, including street sweepers, showcasing its commitment to sustainable innovation.
Certification and Recognition
Notably, Tantech is ISO 9000 and ISO 14000 certified, underscoring its commitment to quality and environmental management. Over the years, the company has received numerous awards and recognition from various national and local authorities, highlighting its dedication to excellence in both product quality and research.
Commercial Factoring Services
In addition to its product lines, Tantech also engages in commercial factoring through its subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, serving various businesses across its supply chain. This aspect of their operations not only bolsters financial health but also enhances the overall connectivity within their enterprise ecosystem.
Frequently Asked Questions
What is share consolidation?
Share consolidation is a corporate action where a company reduces the total number of its outstanding shares while maintaining the same total market value.
Why is Tantech Holdings consolidating its shares?
Tantech is consolidating its shares to comply with NASDAQ listing requirements, ensuring it can remain listed on the exchange.
When will the share consolidation take effect?
The consolidation will take effect soon, aligning with trading operations to maintain market stability during the transition period.
What will happen to fractional shares?
No fractional shares will be issued; Tantech will redeem any such shares to ensure that shareholders receive whole shares after consolidation.
How does this affect the company's overall strategy?
This consolidation aligns with Tantech's broader strategy to enhance its market position, improve share value, and facilitate future growth opportunities.
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