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HONG KONG – Infobird Co., Ltd (NASDAQ: IFBD), a provider of AI-powered customer engagement solutions, has received shareholder approval for a 1-for-8 reverse stock split, capital reduction and organizational restructuring. The special meeting of stockholders held today approved changes designed to ensure compliance with Nasdaq Market Rule 5550(a)(2) in order to maintain our Nasdaq listing.
The reverse stock split will be effective from the start of trading on February 27, 2024, with each eight shares of common stock having a par value of US$0.5 being converted into one share of common stock having a par value of US$4.0. The consolidation is structured to affect all shareholders uniformly, without changing their ownership stake in the Company, except for minor adjustments due to fractional shares being rounded up to the nearest whole number.
Following the reverse stock split, a capital reduction and share capital restructuring will take effect following a court order of the Grand Court of the Cayman Islands. Subsequently, the Company's authorized share capital was reduced from US$25 billion divided into 6.25 billion shares at US$4.00 each to US$50 million divided into 5 trillion ordinary shares at US$0.00001 each. be done. This step involves the cancellation of unissued common stock and affects all shareholders uniformly without changing their ownership percentages.
The Board of Directors originally approved these measures on January 10, 2024, and they were subsequently approved by shareholders. Following the effectiveness of the capital reduction and reorganization, Infobird intends to file a sixth amended and restated memorandum and articles of association with the Cayman Islands Registrar of Companies.
Infobird specializes in Software-as-a-Service solutions that leverage artificial intelligence to enhance customer engagement. The company's decision to restructure its share capital represents a strategic move to comply with market regulations and maintain its position on the Nasdaq capital market. This article is based on a press release from Infobird Co., Ltd.
Investment Pro Insights
Infobird Co., Ltd (NASDAQ: IFBD) has undergone significant structural changes to maintain its NASDAQ listing, and investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Infobird has a market capitalization of $18.65 million, which reflects its current valuation in the market. Despite a challenging financial environment with a P/E ratio of -1.51 over the past 12 months as of Q2 2023, the company achieved a significant total stock return of 300% last month.
InvestingPro Tips suggests that analysts are expecting revenue growth for the current fiscal year, which reached $5.51 million in the trailing twelve months as of Q2 2023. This may indicate that the company's sales may improve. Another important metric to consider is the company's total revenue. The profit margin for the same period was 35.93%. This shows that despite facing profitability challenges, Infobird still maintains some operational efficiency.
Investors should note that Infobird's stock has experienced high price volatility, and InvestingPro's tips are consistent with the observed price movement. Shareholders have witnessed a roller coaster ride with significant gains over the past week and month. For those looking to take advantage of this volatility, or assessing a company's long-term prospects, InvestingPro offers additional We offer a comprehensive set of tips.Use coupon code to save an additional 10% on annual or biennial Pro and Pro+ subscriptions pro news 24. 12 more of his InvestingPro tips are available that can provide further insight into Infobird's market dynamics and financial health.
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