XIAMEN, China - LZ Technology Holdings Limited (NASDAQ:LZMH) announced that its shareholders and board of directors approved a one-for-twenty reverse share split of the company's Class A and Class B ordinary shares.
The reverse split takes effect Thursday, with Class B ordinary shares trading on a split-adjusted basis under the symbol LZMH, with a new CUSIP number G57Y3D117 and a new par value of $0.0005 per share.
Under the reverse split, every twenty ordinary shares will automatically combine into one share. Shareholders holding shares in brokerage accounts need not take any action. Those holding certificates will receive instructions from the transfer agent.
Fractional shares will be rounded up to the nearest whole share.
The company aims to increase the per-share price to meet NASDAQ's $1.00 minimum bid requirement. The stock currently trades at $0.08, near its 52-week low, after declining 99% over the past year.
Before the reverse split, the company had 22,500,000 Class A and 157,070,000 Class B shares. After, approximately 1,125,000 Class A and 7,853,500 Class B shares will be outstanding.
LZ Technology operates in China, providing IT and advertising services across smart community, out-of-home advertising, and local life verticals. The company faces weak gross profit margins and is quickly burning cash.
