#China #NASDAQ #Xiamen #Lichen China #Reverse Stock Split

Lichen China Limited Announces Reverse Stock Split and Name Change

Lichen China Limited, a prominent financial and taxation service provider, has made significant news with its recent announcement regarding a reverse stock split and a corporate name change. This decision comes in alignment with the company’s strategic objectives and commitment to maintain compliance with the Nasdaq Stock Market's listing requirements.

Details of the Reverse Stock Split

On February 27, 2025, Lichen China revealed that the reverse stock split will take effect on March 3, 2025. Following the company's annual meeting held on February 10, shareholders approved a reverse split ratio that ranges from one-for-twenty to one-for-two-hundred. The board ultimately decided on a one-for-two-hundred split for both Class A and Class B ordinary shares. This means that for every two hundred existing shares, shareholders will receive one new share, which is intended to raise the per-share market value above the required $1.00 minimum for Nasdaq listings.

This reverse split affects all issued and outstanding shares of the company's ordinary shares and will also impact the number of shares linked to existing stock options or warrants. Importantly, shareholders will not need to take any action to receive their new post-split shares, as their holdings will be automatically adjusted, ensuring a seamless transition.

Name Change to Lichen International Limited

Adding to the impact of the reverse split, Lichen China has also confirmed that it will change its name to Lichen International Limited, effective on the same day, March 3, 2025. This name change reflects the company’s broadened vision and its dedication to providing exceptional financial services not just in China but on an international scale. Shareholders have welcomed this change as a positive step toward enhancing the company’s global presence.

Implications for Shareholders

While the reverse stock split may sound concerning, it is designed to enhance shareholder value by improving the market price of the Ordinary Shares. Notably, no fractional shares will be created; any entitlements to fractional shares will be rounded up to the nearest whole share, ensuring all shareholders maintain their equity percentage. The company assures that this maneuver aims to preserve shareholders’ long-term interests.

In light of the recent developments and strategic changes, Lichen China aims to bolster its financial positioning and ensure compliance with market regulations. The transformative approaches undertaken are part of China Limited’s commitment to providing high-quality financial solutions, which it has been recognized for over 18 years. With the anticipated market adjustments post-split, the company is focused on establishing a stronger foothold in the financial services sector.

About Lichen China Limited

Lichen China Limited is dedicated to offering comprehensive financial and taxation services, educational support, and software maintenance. Throughout its existence, Lichen has built a strong reputation based on professional and high-standard service in the financial sector. The change to Lichen International Limited reflects not only a shift in name but a vision for future growth and development in providing exceptional financial solutions.

As shareholders and market participants look forward to these upcoming changes, the company emphasizes its ongoing commitment to transparency, consistency, and service excellence, ensuring all stakeholders remain informed and engaged through this transition.