NEW YORK - Chijet Motor Company, Inc. (NASDAQ: CJET), a company specializing in the development and sale of vehicles, has announced the implementation of a 1-for-30 reverse stock split. The action took effect on Tuesday, aiming to bring the company's shares in line with the Nasdaq Global Market's minimum bid price rule. Starting from Monday, July 8, 2024, Chijet's ordinary shares will trade on a split-adjusted basis on the Nasdaq under the existing ticker symbol "CJET."
The reverse stock split was approved to address the $1.00 minimum bid price requirement for continued listing on the Nasdaq Stock Market. With this adjustment, the total number of Chijet's issued and outstanding ordinary shares will reduce from 160,707,171 to approximately 5,356,905 shares.
For Chijet shareholders, the transition will be automatic, converting every 30 shares into one issued and outstanding share. No fractional shares will be distributed; instead, shareholders will receive a rounded-up whole share in cases where the split results in a fractional share. Shareholders with physical stock certificates will receive new book-entry shares and will be contacted by the Company’s transfer agent, Equiniti Trust Company, LLC, with further instructions.
This corporate maneuver is designed to bolster the trading price of Chijet's shares and secure its position on the Nasdaq exchange. The company has not made any physical stock certificates available for this process, emphasizing the shift to electronic book-entry shares.
The information provided is based on a press release statement from Chijet Motor Company, Inc.
In other recent news, Chijet Motor Company has announced a notable expansion into Uzbekistan through a distribution agreement with TANK AUTO, an Uzbek distributor. This deal comes as part of a three-year agreement, which will see TANK AUTO become the official agent for automotive sales and after-sales services for Chijet's subsidiary, FAW Jilin Automobile Co., Ltd. in Uzbekistan.
This development follows a visit from an economic and trade delegation from Uzbekistan to FAW's production facilities. The delegation, led by Sayyed Karimov, the economic governor of Tashkent Region, expressed confidence in FAW's product lineup, noting its suitability for the Uzbek market. The delegation predicted a sales target of 12,000 units within the three-year agreement period.
Mr. Wang Yunfei, the head of FAW, responded positively to the partnership, expressing readiness for long-term cooperation with Uzbek partners. He also stated FAW's commitment to developing products tailored specifically to the Uzbek market.
These recent developments underline Chijet's ongoing efforts to expand its global reach and cater to the needs of diverse markets.
InvestingPro Insights
In light of Chijet Motor Company's recent reverse stock split, current and potential investors might consider several key metrics and insights from InvestingPro. The company's market capitalization has adjusted to approximately $50.93 million USD, reflecting the impact of the reverse stock split on the company's valuation. Moreover, Chijet's revenue for the last twelve months as of Q4 2023 was reported at $9.48 million USD, with a notable quarterly revenue growth of 31.82% in Q4 2023. This growth could signal a positive trajectory in sales, despite the company's challenges.
InvestingPro Tips highlight several areas of concern for Chijet, including a significant debt burden and weak gross profit margins. Specifically, the company's gross profit margin for the last twelve months as of Q4 2023 was a concerning -345.49%, indicating that the cost of goods sold far exceeded the company's revenue. Additionally, the price of Chijet's stock has experienced considerable volatility, moving in the opposite direction of the market and suffering a sharp decline over the last month, with a 1-month price total return of -27.95%.
For those looking to delve deeper into Chijet's financial health and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/CJET. These tips provide a comprehensive look at the company's financials, including its ability to meet short-term obligations and its stock's historical performance. For access to the full range of insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the 17 additional tips listed on InvestingPro that could inform investment decisions.
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