China Green Agriculture Announces Reverse Stock Split
China Green Agriculture Inc. (NYSE: CGA) executed a reverse stock split at a ratio of 1-for-12 Friday, sending its shares down 8 percent to $5.54 apiece.
The Xi'an-based company, which produces and distributes liquid compound fertilizer on the basis of humic acid, said in a statement today that every twelve issued and outstanding shares will be converted into one common share.
The stock merger will reduce the number of shares of China Green Agriculture from approximately 47.82 million to 3.98 million, effective today, and will not have an effect on its market capitalization.
The company said the share rollback was executed to ensure compliance with the New York Stock Exchange share price listing rule. Stocks trading on the NYSE must maintain a minimum price of $1 per share to guarantee the marketability and liquidity.
China Green promised to regain full compliance with the NYSE's continued listing standards by mid-August.
China Green Agriculture said its revenue reached $108 million in the first quarter, up 31 percent from the corresponding period in 2018. Net income dropped 34 percent to $15.68 million, or 13 cents per ADS, in the first three months through March.
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