CHENGDU, China, June 18, 2024 /PRNewswire/ -- Qilian International Holding Group Limited (NASDAQ:QLI) ("Qilian" or the "Company"), a China-based pharmaceutical and chemical products manufacturer, announced today that an 1 for 5 reverse split of its authorized share capital, was approved by the Company's board of directors on May 29, 2023 and will become effective on June 21, 2024. In connection with the reverse share split, the Company's shareholders will receive one new Class A ordinary share or Class B ordinary share of the Company for every five Class A ordinary shares or every five Class B ordinary shares they hold, respectively. The Company's Class A ordinary shares are expected to begin trading on a split-adjusted basis when the market opens on June 21, 2024.
The reverse share split is expected to lead the Company's Class A ordinary shares to trade at approximately five times the price per share at which it trades prior to the effectiveness of the reverse share split. The Company, however, cannot assure that the price of its Class A ordinary shares after the reverse split will reflect the 1 for 5 reverse split ratio, that the price per share following the effective time of the reverse split will be maintained for any period of time, or that the price will remain above the pre-split trading price.
The Company has filed the Amended and Restated Articles and Memorandum of Association in connection with the reverse share split. Immediately prior to the reverse split, there are 23,750,000 of the Company's Class A Ordinary Shares and 12,000,000 Class B ordinary shares outstanding. Effecting the 1 for 5 reverse split will reduce the number of issued and outstanding shares to approximately 4,750,000 Class A ordinary shares and 2,400,000 Class B ordinary shares. As a result of the reverse split, the Company's authorized share capital will be changed to 70,000,000 Class A Ordinary Shares, par value $0.00833335 each, 20,000,000 Class B Ordinary Shares, par value $0.00833335 each, and 10,000,000 preferred shares, par value $0.00833335 each.
Fractional Shares
Any fractional shares that would have resulted because of the Reverse Split will be rounded up to the nearest whole share.
New Ordinary Share Certificates
Certificates reflecting the new share number will be issued in due course as old share certificates are tendered for exchange or transfer to the Company's transfer agent, VStock. Registered shareholders holding pre-split shares of the Company's ordinary shares electronically in book-entry form are not required to take any action to receive post-split shares. Shareholders who hold their shares through a securities broker or nominee (i.e., in "street name") will be contacted by their brokers or nominees with any instructions. For more information, shareholders and securities brokers should contact VStock at (212)828-8436.
About Qilian International Holding Group Ltd
Qilian International Holding Group Ltd, headquartered in Gansu, China, is a pharmaceutical and chemical products manufacturer in China. It focuses on the development, manufacture, marketing and sale of licorice products, oxytetracycline products, traditional Chinese medicine derivatives product, heparin product, sausage casings, and fertilizers. The Company's products are sold in more than 20 provinces in China. For more information, visit the Company's website at https://www.qilianholding.com/
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For more information, please contact:
Name: Yubin Jiang
