China SXT Pharmaceuticals (SXTC) Stock: 1-For-20 Reverse Split Goes Into Effect

By Amit Chowdhry ● May 19, 2022
  • A 1-for-20 reverse split of the China SXT Pharmaceuticals, Inc. (NASDAQ: SXTC) stock has gone into effect. These are the details.

China SXT Pharmaceuticals, Inc. (NASDAQ: SXTC) – a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces (TCMPs), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements – announced that a 1 for 20 reverse split of its ordinary shares was approved by the company’s board of directors on May 10, 2022, and became effective on May 17, 2022.

In connection with the reverse share split, China SXT Pharmaceuticals’ shareholders will receive 1 new ordinary share of the company for every 20 shares they hold. China SXT Pharmaceuticals’ ordinary shares are expected to begin trading on a split-adjusted basis when the market opens on May 19, 2022,

The reverse share split is expected to lead the China SXT Pharmaceuticals’ ordinary shares to trade at approximately twenty times the price per share at which it trades prior to the effectiveness of the reverse share split. But China SXT Pharmaceuticals cannot assure that the price of its ordinary shares after the reverse split will reflect the 1 for 20 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.

China SXT Pharmaceuticals has filed the Amended and Restated Articles and Memorandum of Association in connection with the reverse share split. And as of May 16, 2022, there were approximately 40,627,868 of the company’s ordinary shares outstanding. Effecting the 1 for 20 reverse split will reduce that amount to approximately 2,031,400. The reverse split will not change the number of the company’s authorized preferred and ordinary shares, which will remain as unlimited.

The number of ordinary shares into which China SXT Pharmaceuticals outstanding stock options and restricted shares as well as the options’ relevant exercise price per share will be proportionally adjusted to reflect the reverse split.

Any fractional shares that would have resulted because of the reverse split will be rounded up to the nearest whole share.

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