Meiwu Technology Company Limited Announces 1-For-35 Reverse Share Split
Portfolio Pulse from Benzinga Newsdesk
Meiwu Technology Company Limited (NASDAQ: WNW) announced a 1-for-35 reverse share split effective December 20, 2023. Post-split, shares are expected to trade at 35 times the pre-split price, but the company cannot guarantee that the post-split price will reflect the reverse split ratio or remain above the pre-split price. The reverse split will reduce the outstanding shares from approximately 100.67 million to about 2.88 million without changing the number of authorized shares. Stock options and restricted shares will be adjusted accordingly, and fractional shares will be rounded up. New certificates will be issued by TranShare.
December 15, 2023 | 1:32 pm
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Meiwu Technology's 1-for-35 reverse stock split will significantly reduce the number of outstanding shares and is expected to increase the stock price per share, although there is no assurance of maintaining the increased price.
Reverse stock splits often aim to boost the share price and can sometimes be viewed as a positive step by the market if it helps the company meet exchange listing requirements. However, they can also be perceived negatively if seen as a sign of trouble. The company's caution about the post-split price not maintaining its value adds uncertainty, hence a neutral score is given. The relevance is 100 as the news is directly about WNW. The importance is set at 75 due to the significant change in share structure, and confidence is at 70 reflecting the inherent uncertainty in market reactions to reverse splits.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 100