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Ostin Technology Group's Compliance Report: Reverse Share Split & Nasdaq Update

$OST
Form 6-K
Filed on: 2024-12-20
Source
Ostin Technology Group's Compliance Report: Reverse Share Split & Nasdaq Update

Here are the key insights extracted from the financial report of Ostin Technology Group Co., Ltd., as detailed in the Form 6-K filing:

  1. Compliance Notification: The company received a notification from Nasdaq on July 18, 2024, granting it an additional 180-day compliance period (until January 13, 2025) to meet the minimum bid price requirement of $1.00 for its Class A ordinary shares. To regain compliance, the shares must close at or above $1.00 for at least ten consecutive business days.
  2. Delisting Risk: If the company fails to meet the compliance requirement by the end of the 180-day period, Nasdaq will notify the company regarding its potential delisting.
  3. Reverse Share Split: On November 25, 2024, the company held an extraordinary general meeting where shareholders approved a reverse share split at a ratio of 1-for-10. This decision was made to help the company comply with the minimum bid price requirement.
  4. Effective Date of Reverse Share Split: The reverse share split will become effective on December 26, 2024, at 12:00 a.m. Eastern Time. The Class A ordinary shares will trade on a split-adjusted basis under the symbol OST and a new CUSIP number (G67927114).
  5. Fractional Shares: No fractional shares will be issued as a result of the reverse share split. Any fractions will be rounded up to the nearest whole share.
  6. Documentation: The Third Amended and Restated Memorandum and Articles of Association related to the reverse share split were filed with the Registrar of Companies in the Cayman Islands on November 28, 2024.
  7. Press Release: A press release titled “Ostin Technology Group Announces Effective Date of Reverse Share Split” was also issued and is available as an exhibit in the filing.
  8. Signature and Authority: The report is signed by Tao Ling, the Chief Executive Officer of Ostin Technology Group Co., Ltd., dated December 20, 2024.

This report highlights the company's ongoing efforts to maintain compliance with Nasdaq listing requirements, indicating potential volatility and significant corporate actions (like the reverse share split) aimed at stabilizing its stock price.