Lianhe Sowell Approves 16-for-1 Share Consolidation and US$80M Capital Increase
LHSW•Lianhe Sowell shareholders approved a 16-for-1 consolidation of Class A and B shares, reducing 500 million authorized shares into 31.25 million and eliminating fractional shares. They approved raising authorized capital to US$80 million for up to 50 billion shares, empowered future 2:1–250:1 consolidations and amended the corporate charter.
1. Extraordinary General Meeting Highlights
At its May 29 meeting in Shenzhen, Lianhe Sowell International Group secured approval for five resolutions reworking its share structure.
2. First Share Consolidation Details
The first resolution condenses every 16 Class A and B shares into one share, boosts par value from US$0.0001 to US$0.0016, revises authorized capital to 28.125 million Class A and 3.125 million Class B shares, and rounds up fractional allocations.
3. Share Capital Increase and Charter Updates
The second proposal raises authorized share capital from US$50,000 to US$80 million, enabling issuance of up to 45 billion Class A and 5 billion Class B shares, while the third adopts an amended and restated memorandum and articles to reflect the changes.
4. Future Consolidations and Governance Authorizations
The fourth resolution awards the board discretion to execute additional consolidations at cumulative ratios between 2:1 and 250:1 over two years without fractional shares, and the fifth ensures the corporate charter will be updated following any future consolidations.
