Key Takeaways:
U-BX Technology Ltd. (NASDAQ: UBXG) announced a 1-for-25 reverse stock split of its ordinary shares, sending the stock down nearly 20 percent ahead of the May 22 effective date.
"The Company’s Board of Directors determined the ratio to be 1-for-25 on May 12, 2026," the company stated in a press release, following shareholder approval granted in November 2025.
The action will consolidate every 25 existing shares into one. It will reduce the number of outstanding Class A shares from approximately 37.79 million to 1.51 million and Class B shares from 7.66 million to 0.31 million. The new CUSIP number for the Class A shares will be G9161K120.
The move comes after the stock price fell to around $0.11. This is the company's second reverse split in less than two years, following a 1-for-16 consolidation in November 2024, as it works to manage its share structure.
The company confirmed that no fractional shares will be issued, with any entitlements being rounded up to one full share. The par value of both Class A and Class B shares will be adjusted to $0.04 from $0.0016.
The reverse split is intended to increase the per-share market price of the company's stock. However, the market's immediate reaction was negative, with shares declining 19.84 percent on trading volume well below its 20-day average.
This action signals the company's continued efforts to reshape its capital structure. Investors will be watching how the newly consolidated shares trade on May 22 and whether the move helps stabilize the stock price long-term.
This article is for informational purposes only and does not constitute investment advice.
