LI Bang International Corporation Inc (NASDAQ:LBGJ) shares tumbled in Wednesday’s after-hours session after the company announced a 1-for-200 reverse stock split to regain compliance with Nasdaq’s minimum bid price requirement.

The stock closed Wednesday’s regular session down 20% at $0.024 before extending losses by another 23.33% in after-hours trading to $0.018.

Li Bang designs, develops, manufactures and sells stainless steel commercial kitchen equipment in China under its own “Li Bang” brand.

Reverse Stock Split

Li Bang said its board of directors and shareholders approved the 1-for-200 reverse stock split, which will become effective before the market opens on Aug. 3. The company’s Class A ordinary shares will continue trading on the Nasdaq Capital Market under the ticker LBGJ and will receive a new CUSIP number.

The company said the share consolidation is intended to help maintain compliance with Nasdaq Listing Rule 5550(a)(2), which requires listed companies to maintain a minimum bid price of $1 per share.

Under the reverse split, every 200 issued and outstanding Class A and Class B ordinary shares will be combined into one share. Fractional shares will not be issued, with any fractional interests rounded up to the nearest whole share.

Li Bang currently has 108.13 million Class A ordinary shares and approximately 154K Class B ordinary shares outstanding. Following the consolidation, the company expects to have approximately 541K Class A ordinary shares and 772 Class B ordinary shares outstanding, subject to the rounding of fractional shares.

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Trading Metrics

Li Bang has a market capitalization of approximately $80,600, with a 52-week high of $177.00 and a 52-week low of $0.023.

Over the past 12 months, LBGJ shares have plunged approximately 99.98%.

Benzinga Edge Stock Rankings show negative price trends across the short-, medium- and long-term time frames.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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