Cheer Holding Approves 3-for-1 Share Consolidation, Cuts Authorized Capital by US$0.05
Shareholders approved reducing authorized share capital from US$500,700 to US$500,699.95 and a 3-for-1 consolidation of Class A shares, raising par value to US$0.15 each. Directors will determine timing and implementation, aiming to satisfy Nasdaq’s minimum bid price requirement and maintain continued listing.
1. Extraordinary General Meeting Outcome
At its March 16 meeting in Beijing, Cheer Holding’s shareholders approved a special resolution to reduce its authorized share capital by US$0.05, canceling one unissued Class A share and consolidating every three existing Class A shares into one.
2. Authorized Capital Structure Changes
The authorized share capital will adjust from US$500,700 divided into 10,000,000 Class A shares at US$0.05 par value to US$500,699.95 comprising 3,333,333 Class A shares at US$0.15 par value, while Class B and preferred shares remain unchanged.
3. Objective and Listing Compliance
Cheer Holding intends to use the share consolidation and capital reduction to satisfy Nasdaq’s minimum bid price requirement and maintain its Capital Market listing, with directors retaining discretion over timing and implementation.