#China #Wenzhou #Reverse Stock Split #ZK International #ZKIN

ZK International Group Implements 1-for-7 Reverse Stock Split

ZK International Group Co., Ltd., a notable player in the engineering sector, primarily focusing on high-performance steel products, has recently made headlines with the announcement of a 1-for-7 reverse stock split of its ordinary shares. The decision was sanctioned by the Company's Board of Directors on January 14, 2025, aiming to bolster its stock price and ensure compliance with NASDAQ listing requirements.

What is a Reverse Stock Split?

A reverse stock split entails consolidating multiple shares into a single one, thereby boosting the per-share share price. In ZK International's case, from January 31, 2025, every seven shares of the already outstanding ordinary shares will automatically be converted into just one share. Consequently, the total number of shares will reduce significantly—turning the current figure of approximately 36 million ordinary shares down to roughly 5.16 million shares following the reverse split.

This strategic financial maneuver is critical for ZK International as it endeavors to increase its share price above the minimum bid price requirement of $1.00 for maintaining its NASDAQ listing. Without this adjustment, the company's stock risked being delisted, which could negatively impact investor confidence and market perceptions.

Logistics of the Split

For shareholders caught up in this transition, it is vital to note that no action is required on their part if they hold their shares in book-entry form through banks, brokers, or nominees. Conversely, those holding physical stock certificates might soon receive book-entry shares instead, simplifying the transaction process. The company's transfer agent, Securities Transfer Corporation, is poised to issue detailed instructions to facilitate the transition.

The new CUSIP number for these shares post-split will be G9892K209, allowing investors and market participants to track their holdings accurately.

Company Overview and Future Outlook

ZK International has carved a niche in engineering and manufacturing patented high-performance stainless and carbon steel pipe products integral to water quality enhancements. With 28 patents and an array of recognitions, the company is adamant about addressing the formidable challenges of water safety within China and beyond. Notably, its technologies have proliferated within over 2,000 projects, spanning from the prestigious Beijing National Airport to Olympic venues.

With a commitment to sustainability, ZK International is keenly positioned to leverage the drastic $850 billion investment pledged by the Chinese Government to enhance water quality, significantly noted as comprising 70% unsafe for human contact.

This reverse stock split is a calculated measure to align the company more closely with its growth aspirations while taking actionable steps towards compliance with stock exchange standards. The overall strategy reflects ZK International's ambitions to not just survive but thrive in a competitive market landscape.

Conclusion

In conclusion, ZK International's recent decision to implement a reverse stock split signifies strategic foresight in addressing immediate market challenges while fostering long-term growth ambitions. As the company navigates through these changes, investors and market analysts will closely monitor its performance amidst its commitment to technological innovation and market leadership.

For ongoing updates, follow ZK International on its social media channels or visit ZK International’s website. Additionally, for those interested in the official filings and disclosures, you can explore the SEC’s resources.