Zhongchao Inc. Announces 1-For-10 Share Consolidation, Beginning With The Opening Of Trading On February 29, 2024
Portfolio Pulse from Benzinga Newsdesk
Zhongchao Inc. (NASDAQ:ZCMD), a platform-based internet technology company, announced a 1-for-10 share consolidation approved by shareholders to regain compliance with Nasdaq Marketplace Rule 5550(a)(2). The consolidation will start on February 29, 2024, with Class A and B ordinary shares being consolidated at a ratio of 10:1. This move aims to maintain its Nasdaq Capital Market listing without altering shareholder percentage interests significantly, except for adjustments due to fractional shares.

February 27, 2024 | 1:03 pm
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Zhongchao Inc. announces a 1-for-10 share consolidation to regain Nasdaq compliance, effective February 29, 2024. This action aims to maintain its listing without significantly altering shareholder interests.
The share consolidation is a neutral to slightly positive move aimed at regaining compliance with Nasdaq's listing requirements. While it does not directly impact the company's fundamentals, it could be viewed positively as it shows the company's commitment to maintaining its listing status. However, the impact on the stock price could be neutral in the short term as the market adjusts to the new share structure.
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IMPORTANCE 75
RELEVANCE 100