SHENZHEN, China, June 29,
2023 /PRNewswire/ -- Addentax Group Corp.
("Addentax" or the "Company") (Nasdaq: ATXG), an integrated service
provider focusing on garment manufacturing, logistics service,
property management and subleasing, today announced that the
Company's board of directors exercised its discretion to effect a
1-for-10 reverse split of its common stock shares ("Reverse Stock
Split") on June 8, 2023 and is expected to become
effective on June 30, 2023.
Upon the effectiveness of the reverse share
split, Addentax shareholders will receive one new common
stock share of Addentax for every ten shares they
hold. Addentax's common stock shares are expected to begin
trading on a split-adjusted basis when the market opens
on June 30, 2023.
The reverse share split is expected to lead Addentax's
common stock shares to trade at approximately ten times the price
per share at which it trades prior to the effectiveness of the
reverse share split. Addentax, however, cannot assure that the
price of its common stock shares after the reverse split will
reflect the 1-for-10 reverse split ratio, that the price per share
following the effective time of the reverse split will be
maintained for any period of time, or that the price will remain
above the pre-split trading price.
As of June 29, 2023, there were 37,395,420
of Addentax's common stock outstanding. Effecting the
Reverse Stock Split will reduce that amount to 3,739,542.
Treatment of Restricted Shares
The number of common stock shares into
which Addentax's outstanding restricted shares will be
proportionally adjusted to reflect the reverse split.
Fractional Shares
Any fractional shares that would have resulted because of the
Reverse Split will be rounded up to the nearest whole share.
New Stock Certificates
Addentax will adopt a new stock certificate in connection
with the implementation of the reverse share
split. Addentax's transfer agent, Transfer Online, Inc.,
will manage the exchange of share certificates. Shareholders of
record will receive a letter of transmittal providing instructions
for the exchange of their old certificates as soon as practicable
following the effectiveness of the reverse split. Shareholders
should not send in their old stock certificates until they receive
a letter of transmittal from Transfer Online, Inc. Shareholders who
hold their shares through a securities broker or nominee (i.e., in
"street name") will be contacted by their brokers or nominees with
any instructions.
For more information, shareholders and securities brokers should
contact Transfer Online, Inc. at +1 (503) 227-2950.
About Addentax Group Corp.
Addentax Group Corp. is an integrated service provider
specializing in garment manufacturing, logistics services, property
management, subleasing, and epidemic prevention supplies. Its
apparel manufacturing business includes sales to wholesalers and is
based in China. The logistics
business, which includes delivery and express services, covers 79
cities in 7 provinces and 2 municipalities in China. The property management and subleasing
business provides relevant services to clothing wholesalers and
retailers in the apparel market. The epidemic prevention
supplies business includes manufacturing and distributing
quarantine products, as well as reselling supplies purchased from
the third parties in domestic and overseas markets. More
information please visit the website:
https://www.addentax.com/.
Safe Harbor Statement
All statements other than statements of historical fact in
this announcement are forward-looking statements in nature within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve known and unknown
risks and uncertainties and are based on current expectations and
projections about future events and financial trends that the
Company believes may affect its financial condition, results of
operations, business strategy and financial needs. Words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to" or other similar expressions are intended to identify
such forward-looking statements. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results and encourages investors to consider risk
factors, including those described in the Company's filings with
the SEC, that may affect the Company's future results. All
forward-looking statements attributable to the Company and its
subsidiaries or persons acting on their behalf are expressly
qualified in their entirety by these risk factors. The
forward-looking events discussed in this press release and other
statements made from time to time by us or our representatives, may
not occur, and actual events and results may differ materially and
are subject to risks, uncertainties, and assumptions about us. We
are not obligated to publicly update or revise any forward-looking
statement, whether as a result of uncertainties and assumptions,
the forward-looking events discussed in this press release and
other statements made from time to time by us or our
representatives might not occur.
Company Contact:
Addentax Group Corp.
Phone: + (86) 755 86961 405
Investor Relations Contact:
Sherry Zheng
Weitian Group LLC
1-718-213-7386
shunyu.zheng@weitian-ir.com
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SOURCE Addentax Group Corp.