eLong Power Holding Ltd. (NASDAQ:ELPW) shares are trending on Thursday night.
Shares of the Chinese company rose 45.13% in after-hours trading on Thursday to $5.21 after the company’s 80-for-1 reverse stock split took effect.
The stock closed the regular session at $3.59, down 14.20%, according to Benzinga Pro data.
Why Was the Stock Split Approved?
According to a Securities and Exchange Commission filing, the board of directors approved the share consolidation on March 5 under shareholder authority granted at an extraordinary general meeting held in early January.
eLong Power Holding’s Class A ordinary shares began trading on the Nasdaq Global Market on a post-consolidation basis at market open on Thursday under the existing symbol ‘ELPW.’
The SEC filing, signed on Tuesday by CEO and Chairwoman Xiaodan Liu, states that the company’s total issued and outstanding common shares fell from approximately 63 million to approximately 0.79 million. The company’s authorized shares were proportionally reduced.
Every 80 Class A ordinary shares, each with a par value of $0.00016, were combined and converted into a single issued and outstanding Class A ordinary share with a par value of $0.0128. The same process applied to the Class B ordinary shares.
According to the filing, the split affected all shareholders uniformly and did not alter any shareholder’s percentage ownership interest, except for minimal changes resulting from the treatment of fractional shares.
The filing also notes that the split is intended to bring ELPW into compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii), which requires listed issuers to maintain a closing bid price above $0.10.
Trading Metrics, Technical Analysis
eLong Power Holding, which is a provider of high-power battery technologies for commercial and specialty alternative-energy vehicles, has a market capitalization of $425.76 million, with a 52-week high of $10,336 and a 52-week low of $3.06.
Its stock has a Relative Strength Index (RSI) of 43.56.
ELPW has dropped 99.59% over the past 12 months, indicating a negative long-term outlook.
Currently, the stock is positioned extremely close to its 52-week low.
Benzinga’s Edge Stock Rankings indicate that ELPW, a small-cap stock, has a negative price trend across all time frames.
Photo Courtesy: Rneaw on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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