Dogness International Corporation, a prominent developer and manufacturer specializing in a wide range of pet products under the Dogness brand, as well as OEM and private label offerings, has announced a significant amendment to its Memorandum and Articles of Association. This decision, approved by the company’s board of directors on October 18, 2023, will bring about changes to the authorized shares and par value of Dogness International Corp, alongside a share consolidation of the company’s existing Class A common shares at a ratio of 1-for-20. This consolidation is set to take effect in the marketplace on November 7, 2023.
In the wake of this announcement, Dogness International Corp’s stock has experienced a notable decline of over 16% today.
At the time of this publication, Dogness International Corp stock (DOGZ) has witnessed a decline.
Dogness International Corp
Current Price: $0.25
Change : -0.05
Change (%): (-16.94%)
Volume: 13.5K
Source: Tomorrow Events Market Data
The primary objective behind this share consolidation is to facilitate Dogness International Corp in regaining compliance with Nasdaq Marketplace Rule 5550(a)(2), thereby securing its listing on Nasdaq. It is important to note that the company remains in full compliance with all other listing standards.
Commencing with the commencement of trading on November 7, 2023, Class A Shares of Dogness International Corp will be traded on the Nasdaq Capital Market on a split-adjusted basis. This will occur under the same familiar symbol “DOGZ,” but with a new CUSIP Number, G2788T111.
As a direct consequence of the share consolidation, every twenty Class A Shares currently in circulation will automatically merge and convert into one issued and outstanding common share. This conversion will be executed without any required action on the part of the shareholders. It is pertinent to mention that no fractional Class A Shares will be allocated to shareholders in connection with this consolidation. Instead, such fractional shares will be promptly redeemed by the Company.
At the point when the Share Consolidation takes effect, the total number of shares authorized for issuance by the Company will undergo a transformation. Specifically, it will shift from 110,000,000 shares, divided as follows: (i) 90,931,000 Class A shares, each bearing a par value of US$0.002 and (ii) 19,069,000 Class B shares, also with a par value of US$0.002, to an unrestricted quantity of Class A Shares with no assigned par value, alongside an unrestricted quantity of Class B Shares, also devoid of an assigned par value. This consolidation will lead to a reduction in the number of outstanding Class A Shares, from 31,055,259 to approximately 1,552,763 (accounting for the redemption of fractional shares). It is worth noting that both before and after the Share Consolidation, the total number of outstanding Class B Shares will remain consistent at 9,069,000 shares.
