Hongli Clean Energy Technologies Corp. recently announced that a reverse stock split of its shares of common stock at a ratio of 1-for-10 shares (the “Reverse Split”) will be effective when the market opens on October 27, 2016. At the market open on Thursday, October 27, 2016, the Company’s common stock will begin trading on a split-adjusted basis, under the same trading symbol, CETC.
As a result of the Reverse Split, each 10 pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders. The Reverse Split will also apply to common stock issuable upon the exercise of the Company’s outstanding warrants and stock options.
As a result of the reverse stock split, the Company’s issued and outstanding shares of common stock will decrease to approximately 2,396,452 shares, post-split, from approximately 23,960,217 shares, pre-split. No fractional shares will be issued as a result of the Reverse Split. Fractional shares outstanding after the reverse stock split will be rounded up. When effectuating the Reverse Split, the authorized number of shares of Company’s common stock will change from 100,000,000 to 10,000,000 shares. As a result, the proportion of shares owned by Company’s stockholders relative to the number of shares authorized for issuance will not change.
The Reverse Split was approved by the Company’s Board of Directors on September 15, 2016, in part, to enable the Company to regain and maintain compliance with the minimum closing bid price of $1.00 per share for continued listing on the Nasdaq Capital Market.
Jianhua Lv, Company’s Chief Executive Officer, said, “With this reverse stock split, we expect to satisfy Nasdaq’s minimum bid price requirement and to maintain compliance with that requirement as we move forward with the development of our business. We are highly confident about the long-term prospects of our Company as we continually devote our efforts to make Hongli Clean Energy Technologies Corp. a premier provider of clean energy in China.”