Meiwu Technology Announces 1-for-20 Reverse Stock Split
SHENZHEN, China, March 28, 2025 (GLOBE NEWSWIRE) — Meiwu Technology Company Limited (NASDAQ: WNW) has announced a 1-for-20 reverse share split. The decision, approved by the Board of Directors on March 5, 2025, will take effect when the market opens on April 1, 2025.
Under the terms of the reverse split, shareholders will receive one new ordinary share for every twenty shares they currently hold. This action will reduce the total number of outstanding shares from approximately 63.3 million to about 3.2 million. According to the company, the price per share is expected to increase to roughly twenty times its pre-split level. However, Meiwu Technology has cautioned that it cannot guarantee this multiple will be maintained or that the post-split price will remain above pre-split levels.
“The reverse stock split will adjust the number of shares outstanding and may impact the trading dynamics of our stock. While we anticipate the share price to increase, we cannot guarantee that the price will reflect the reverse split ratio, be maintained for any length of time, or that it will stay above pre-split levels.” – Zhichao Yang, Meiwu Technology
Potential Implications
This reverse split strategy is often employed to meet or maintain listing requirements on exchanges like NASDAQ, which typically require a minimum bid price of $1.00. Given Meiwu’s current share price of $0.152, the reverse split will theoretically bring the share price up to approximately $3.04 when trading begins on the adjusted basis on April 1. However, such a drastic consolidation ratio can be steep compared to typical reverse splits that often range from 1-for-2 to 1-for-10.
The reverse split has the potential to alter the stock’s trading dynamics. The post-split float will be significantly smaller, which could result in reduced liquidity and potentially heightened volatility. Historically, such aggressive reverse stock splits might signal underlying difficulties for companies, especially when combined with the micro-cap status and low share price, and have been shown to be ineffective without underlying financial support.
The company stated the reverse split will also proportionally adjust the outstanding stock options and restricted shares. Fractional shares that result from the reverse split will be rounded up to the nearest whole share.
Shareholders with shares in electronic book-entry form need not take any action. Those holding physical certificates will receive new certificates through TranShare Corporation. For further information, shareholders and brokerages can contact TranShare at (303) 662-1112.
About Meiwu Technology Company Limited
Meiwu Technology Company Limited, incorporated on December 4, 2018, in the British Virgin Islands, is focused on the skincare industry. The company sells functional skincare products through Xiamen Chunshang Health Technology Co., Ltd., a wholly-owned subsidiary in China.
Safe Harbor Statement
This press release includes forward-looking statements. These statements are not guarantees of future performance and involve known and unknown risks. Actual results may differ materially from those discussed in the forward-looking statements. Important factors include managing growth, future acquisitions, financing, economic conditions, profitability, and regulatory changes. The company undertakes no obligation to update these statements.
