Shareholders Approve Massive Share Capital Increase and Aggressive Reverse Split Authority, Concentrating Voting Power

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Elong Power Holding's shareholders have approved significant corporate governance changes that are highly detrimental to minority shareholders. The increase in Class B voting rights from 50x to 200x per share substantially entrenches the control of existing Class B holders, effectively diminishing the influence of Class A shareholders. Furthermore, the company's authorized share capital has been expanded tenfold to 1.5 trillion shares, paving the way for extreme future dilution. Critically, the Board has been granted discretion to implement further reverse stock splits with an accumulative ratio of up to 4000:1 over the next two years, signaling severe ongoing share price instability and a potential "death spiral" financing strategy. These actions collectively indicate a company facing significant challenges, with management prioritizing control and flexibility for future capital raises at the expense of existing shareholder value.

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• Class B Voting Rights Increased

  Shareholders approved increasing the voting rights of Class B ordinary shares from 50 votes to 200 votes per share, significantly concentrating voting power.

• Authorized Share Capital Expanded

  The company's authorized share capital was increased from US$25 million to US$240 million, allowing for the issuance of up to 1.5 trillion shares, a tenfold increase.

• Future Reverse Splits Authorized

  The Board gained discretion to implement further reverse stock splits with an accumulative ratio of up to 4000:1 over the next two years, indicating potential for aggressive share price management.

• Amended Articles of Association Adopted

  The Fourth Amended and Restated Memorandum and Articles of Association were adopted to reflect these significant corporate governance changes.

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Elong Power Holding's shareholders have approved significant corporate governance changes that are highly detrimental to minority shareholders. The increase in Class B voting rights from 50x to 200x per share substantially entrenches the control of existing Class B holders, effectively diminishing the influence of Class A shareholders. Furthermore, the company's authorized share capital has been expanded tenfold to 1.5 trillion shares, paving the way for extreme future dilution. Critically, the Board has been granted discretion to implement further reverse stock splits with an accumulative ratio of up to 4000:1 over the next two years, signaling severe ongoing share price instability and a potential "death spiral" financing strategy. These actions collectively indicate a company facing significant challenges, with management prioritizing control and flexibility for future capital raises at the expense of existing shareholder value.