UTime Limited Implements 1-for-25 Share Consolidation Plan

UTime Limited Announces Strategic 1-for-25 Share Consolidation

UTime Limited (NASDAQ: WTO) is making headlines with its decision to implement a reverse share split of its outstanding ordinary shares at a ratio of 1-for-25. This move is aimed at enhancing the company's compliance standing on the Nasdaq Capital Market.

What Does the Share Split Mean for Investors?

The reverse share split is a strategic maneuver intended to increase the company's share price, ensuring it meets Nasdaq's minimum bid price requirement of $1.00 per ordinary share. As of the opening of trading, the ordinary shares will have a par value of $0.0001, a change that reflects UTime's commitment to its shareholders.

Impact on Shareholders

Following the reverse split, the total number of issued and outstanding shares will decrease from approximately 450 million to around 18 million. This substantial reduction is designed to create a more manageable share structure and enhance the company's market presence.

No Fractional Shares Issued

One noteworthy aspect of this reverse share split is that no fractional shares will be issued. Any fractional shares will be rounded up to the nearest whole share. This policy ensures that all shareholders will maintain their ownership stakes without the hassle of fractional shares, simplifying the process for everyone involved.

Company's Growth and Innovation

Founded in 2008, UTime focuses on providing affordable mobile devices to consumers around the globe, particularly catering to low-income markets. In response to the increasing demand for energy efficiency, the company has recently introduced smart electric vehicle chargers into its product lineup. These innovative products aim to serve both established markets and emerging economies, enhancing technological access for many individuals.

Support for Shareholders During the Process

VStock Transfer, LLC has been appointed as the exchange and paying agent for the reverse share split. Shareholders are advised that those holding shares in book-entry form or through brokerage accounts need not take any direct action regarding the split. For any inquiries, shareholders should reach out to their brokers or custodians for assistance.

Looking Ahead

As UTime Limited continues to innovate and adapt to market demands, the company remains dedicated to enhancing the user experience while ensuring effective operations. The reverse share split represents just one step in a series of strategic initiatives aiming to strengthen the company's foothold in the mobile device manufacturing sector.

Frequently Asked Questions

What is a reverse share split?

A reverse share split reduces the number of a company's outstanding shares, thereby increasing the share price while keeping the overall value for investors unchanged.

Why is UTime Limited conducting a reverse share split?

UTime Limited is implementing the split to comply with Nasdaq's minimum bid price requirement, which is crucial for maintaining its listing on the exchange.

What happens to my shares after the split?

Post-split, shareholders will own fewer shares but the total value of their investment remains the same, with fractional shares rounded up to the nearest whole number.

Who can I contact for questions about the reverse share split?

For questions, shareholders can reach out to VStock Transfer, LLC or consult with their bank or broker.

What innovations is UTime Limited pursuing?

UTime Limited recently expanded its product lines to include smart electric vehicle chargers, responding to the global demand for sustainable technology solutions.

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