This press release has been corrected to include further
details regarding the reverse stock split of ETAO International
Co., Ltd.
We hereby issue a formal amendment to supersede our
previously released press release dated March 19, 2024. This amended communication is
intended to replace the original statement in its entirety and
provides updated, accurate information. We advise all stakeholders
to refer to this latest version for the most current details
regarding the matter previously addressed.
NEW
YORK, March 21, 2024 /PRNewswire/ -- ETAO
International Co., Ltd. (the "Company," "we" or
"ETAO") (NASDAQ: ETAO), today announced that a 1 for 20
reverse split of its ordinary shares, an increase of authorized
shares and the alteration to the share capital of the Company were
approved by the Company's shareholders on February 16, 2024 and is expected to become
effective on or around March 26, 2024.
ETAO International Co., Ltd. Announces 1
for 20 Reverse Share Split
Upon the effectiveness of the reverse share
split, ETAO shareholders will receive one new ordinary share
of ETAO for every twenty shares they hold. ETAO's ordinary shares
are expected to begin trading on a split-adjusted basis when the
market opens on March 26, 2024.
The reverse share split is expected to lead ETAO's ordinary
shares to trade at approximately twenty times the price per share
at which it trades prior to the effectiveness of the reverse share
split. ETAO, however, cannot assure that the price of its Class A
ordinary shares after the reverse split will reflect the 1-for-20
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.
Following the 1-for-20 reverse split, the increase of authorized
shares, and the alteration of the share capital, the Company's
authorized issued share capital consists of (i) 200,000,000
ordinary shares, par value US$0.002
each, designated as 150,000,000 Class A ordinary shares, par value
US$0.002 each (the "Class A
Ordinary Shares") and 50,000,000 Class B ordinary shares, par
value US$0.002 each (the "Class B
Ordinary Shares"); and (ii) 50,000,000 preferred shares (the
"Preferred Shares"), par value US$0.002 each.
Except for 49,613,200 ordinary shares beneficially owned by Mr.
Wensheng Liu, the CEO and the
Chairman of ETAO, each outstanding ordinary shares of ETAO will be
re-designated into one Class A Ordinary Shares. Each ordinary
shares beneficially owned by Mr. Wensehng Liu will be re-designated
into one Class B Ordinary Shares. Each Class A ordinary share is
entitled to one (1) vote, and each Class B Ordinary Share is
entitled to thirty (30) votes. Prior to the re-designation, Mr. Liu
had 48.5% of the total voting power. Immediately following the
re-designation, Mr. Liu will have 86.7% of the total voting
power.
The Class A Ordinary Shares of ETAO will continue to trade on
the Nasdaq Capital Market under the symbol "ETAO".
Company has adopted the Amended and Restated Articles and
Memorandum of Association in connection with the reverse share
split, increase of authorized shares and the alteration to the
share capital.
Treatment of Stock Options and Restricted
Shares
The number of ordinary shares into which ETAO 's outstanding
stock options and restricted shares as well as the options'
relevant exercise price per share 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 Ordinary Share Certificates
ETAO will adopt a new share certificate in connection with the
implementation of the reverse share split. ETAO's transfer agent,
Continental Stock Transfer & Trust Company, 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 Continental Stock Transfer & Trust Company.
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 Continental Stock Transfer & Trust Company at
212-845-5294.
About ETAO
ETAO International Co., Ltd., a Cayman
Islands company, aims to be the world's leading digital
healthcare group providing telemedicine, hospital care, primary
care, pharmacy, and health insurance covering all life stages of
patients. "ETAO" brand means "Best Medical Way" with transformative
medical care and unparalleled service. ETAO is a holding company
incorporated in the Cayman Islands
with no material operations. ETAO conducts the operations primarily
through the affiliated entities in China.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involving known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the uncertainty about the spread of the COVID-19
virus and the impact it will have on the Company's operations, the
demand for the Company's products, supply chains and economic
activity in general. These and other risks and uncertainties are
detailed in the risk factors discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on the SEC's website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these risk factors. Other than as required under the applicable
securities laws, the Company does not assume a duty to update these
forward-looking statements.
Related Links
https://www.etao.world
Media Contact:
Wilson Liu
Tel:347-306-5134
wilson.liu@etao.world
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SOURCE ETAO International Co., Ltd.