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Nova Lifestyle Inc Completes One-For-Five Reverse Stock Split
Nova Lifestyle Inc (NVFY) recently completed a one-for-five reverse stock split. The company filed a certificate of change on May 22, 2023, pursuant to NRS 78.209 with the Nevada Secretary of State to effect the reverse stock split.
As a result of the reverse stock split, every 5 shares of the company’s issued and outstanding immediately before filing the Certificate of Change were consolidated into one issued and outstanding share. All stockholders who would be entitled to receive fractional shares due to the reverse stock split received one whole share for their fractional share interest.
The stock will begin trading on a split-adjusted basis starting May 24, 2023. The certificate of change also decreased the number of authorized shares of the company’s common stock from 15 million to 3 million.
This move by the company is expected to provide more flexibility with the company’s capital structure and enhance shareholder value.
Price Action
Following this news, NVFY shares are trading higher by 26% at $0.61 on the last check Tuesday. Investors are keeping an eye on the stock and how it will perform in the coming days.
In conclusion, the reverse stock split by Nova Lifestyle Inc is expected to provide more flexibility and opportunities for the company’s growth. The stock market will be closely watching for any developments and how the company will take advantage of its new capital structure.
