Zhibao Technology Inc. (NASDAQ:ZBAO) shares surged 60.24% to $0.094 in after-hours trading on Thursday after the Chinese insurance technology company, which provides digital insurance brokerage services, said it will proceed with a 1-for-50 reverse stock split.
Reverse Split Takes Effect Monday
The split will become effective Oct. 12, the company said. Class A ordinary shares will begin trading on a post-split basis at market open under the same “ZBAO” symbol, with a new CUSIP number. Shareholders approved the move at an extraordinary general meeting on Sept. 29.
What Investors Should Know
Every 50 Class A shares will be combined into one. Par value will rise from $0.0001 to $0.005 per share.
The company said the split will apply equally to all Class A ordinary shares, leaving each shareholder’s ownership percentage unchanged, except for adjustments related to fractional shares. Any fractional shares will be rounded up to the next whole share.
The company will also make proportional adjustments to its equity plans and all outstanding equity awards. Warrants and other convertible securities will be adjusted in line with the terms of their respective agreements.
New York-based Continental Stock Transfer & Trust Co. is the transfer agent.
Trading Metrics, Technical Analysis
Zhibao Technology has a market capitalization of $26.85 million, a 52-week high of $1.34 and a 52-week low of $0.06.
The Relative Strength Index (RSI) of ZBAO stands at 27.76.
The small-cap stock has declined 99.88% over the past 12 months.
Price Action: On Thursday, ZBAO closed at $0.059, down 28.19%, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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