Farmmi Announces Approval Of 1-For-8 Ordinary Share Consolidation
Portfolio Pulse from Benzinga Newsdesk
Farmmi, Inc. (NASDAQ:FAMI) announced that its shareholders have approved a one-for-eight share consolidation. The move aims to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintain its Nasdaq listing. The consolidation will reduce the number of ordinary shares from 47,470,672 to approximately 5,933,834. The consolidation will be effective from September 25, 2023.
September 22, 2023 | 2:23 pm
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Farmmi's one-for-eight share consolidation could potentially stabilize the company's stock price by regaining compliance with Nasdaq rules. However, it may also dilute shareholder value.
Share consolidations are often used by companies to maintain their listing on exchanges by meeting minimum share price requirements. While this could stabilize the stock price, it also dilutes the value of existing shares, which could negatively impact investor sentiment.
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