ATIF Holdings Limited (NASDAQ:ATIF) fell 35% after announcing a 5 for one reverse stock split. Last week, the company announced that its Board had approved a reversed stock split of its approved, outstanding, and issued common stock par value $0.001 for each share in a 5 for one ratio.
This implies that the company will convert every five shares currently held into one share. Most importantly, shareholders eligible to get fractional sharesdue to the reverse share split will get a total share in lieu of the fractional share. Thus, there is no need for a shareholders’ vote regarding the reverse share split.
The company will affect the reverse stock split through amendments to its Memorandum and Articles of Association with British Virgin Islands’ Registrar of Corporate Affairs. ATIF will file the amendments around August 27, 2021, with the common shares starting trading on the Nasdaq exchange on August 30, 2021. Therefore, ATIF is worth watching in the coming months.