NANJING, China – Ostin Technology Group Co., Ltd. (NASDAQ:OST), a supplier of display modules and polarizers, has announced a revised effective date for its previously approved reverse stock split. Initially scheduled for December 26, 2024, the consolidation will now take effect on December 31, 2024, with the company’s Class A ordinary shares trading on a post-split basis from that date under the ticker symbol OST. The announcement comes as the company’s stock trades at $0.19, having declined over 75% year-to-date, according to InvestingPro data.
The reverse stock split, at a ratio of 1-for-10, was approved by shareholders at a meeting on November 25, 2024. This move will reduce the number of outstanding Class A ordinary shares from approximately 18.1 million to roughly 1.81 million, with the company’s market capitalization currently standing at just $3.79 million. The new CUSIP number assigned to the Class A ordinary shares will be G67927114.
Accompanying the reverse split, Ostin Technology has amended its Memorandum of Association to proportionately decrease the number of authorized shares and to adjust the par value to $0.001 per share. The adjustment is aimed at bringing the company into compliance with the Nasdaq Marketplace Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share. InvestingPro analysis reveals concerning financial health indicators, including significant debt burden and rapid cash burn, with a weak overall financial health score.
Shareholders will not receive fractional shares as a result of the reverse split. Instead, those entitled to fractions will have their holdings rounded up to the nearest whole share. Detailed information about the reverse stock split and changes to the share capital structure is available in the notice of extraordinary general meeting filed with the Securities and Exchange Commission on November 8, 2024.
Ostin Technology, established in 2010, specializes in the design, development, and manufacture of TFT-LCD display modules and polarizers, which are used in various applications including consumer electronics, outdoor displays, and automotive displays. Recent financial data from InvestingPro shows the company operating with challenging metrics, including a low price-to-book ratio of 0.37 and negative EBITDA of -$6.54 million in the last twelve months. Subscribers to InvestingPro can access 15 additional key insights about the company’s financial position and market performance.
The company’s press release also contains forward-looking statements regarding its strategies, market trends, and future product demand and acceptance. However, these statements are not guarantees of future performance and are subject to risks and uncertainties, particularly given the company’s current gross profit margin of 5.89% and negative return on assets of -19.51%.
This news summary is based on a press release statement from Ostin Technology Group Co., Ltd.
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