#Hong Kong #Stock Split #MMTEC #Nasdaq MTC

MMTEC, Inc. Implements 1-for-8 Reverse Stock Split

MMTEC, Inc., a leading company in investment banking and asset management, has announced plans for a reverse stock split at a ratio of 1-for-8. This decision aims to streamline its capital structure and improve its compliance with Nasdaq trading requirements. The effective date for this split is set for December 18, 2024.

Background on Reverse Stock Split

A reverse stock split consolidates the number of a company's outstanding shares into fewer, proportionally more valuable shares. In MMTEC's case, every 8 shares currently held by investors will be converted into one share of common stock. Importantly, no fractional shares will be issued; instead, any fractional shares will be rounded up to the nearest whole number, ensuring all shareholders are treated equally while not altering their overall percentage interest in the company.

Nasdaq Approval and Trading Context

Trading will continue on the Nasdaq Stock Market under the symbol 'MTC,' and the new CUSIP number assigned to the common stock following this split will be G6181K122. The Board of Directors approved this move on November 21, 2024, as part of a long-term strategy to enhance stock performance and compliance with Nasdaq’s thresholds.

In general, a reverse stock split is often a strategic response to trading below the required minimum share price, which can occur due to various market conditions. MMTEC aims to address its bid price rule compliance through this initiative.

Corporate Adjustments and Financial Implications

As part of the process, MMTEC is also reducing its authorized number of shares from 5 billion to 625 million, aligning with the reverse stock split ratio. Furthermore, the par value per share will increase from $0.01 to $0.08 as part of this restructuring effort. Notably, such moves do not require shareholder approval under British Virgin Islands law, ensuring a swift transition.

Looking Ahead: Future Outlook for MMTEC

MMTEC, headquartered in Hong Kong, has been focusing on providing comprehensive financial services and is positioned for continued growth. This reverse stock split is seen not just as a compliance measure, but as a step towards enhancing shareholder value and improving market perception.

The company has issued forward-looking statements regarding its future business strategies and market conditions in light of this action, highlighting its commitment to transparency and ongoing communication with investors. MMTEC is determined to navigate the challenges posed by market fluctuations and regulatory requirements effectively.

For further information, stakeholders are encouraged to review detailed updates that will be shared via subsequent announcements leading up to the effective date of the split.

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For more details about MMTEC, please visit MMTEC's official website.