Chaince Digital Seeks Shareholder Approval for 20B Share Authorization and Up to 4,000:1 Reverse Split

summarizeSummary

Chaince Digital's annual meeting proxy asks shareholders to approve a 20-fold increase in authorized shares to 20 billion and grant the board open-ended reverse-split authority up to 4,000:1 — moves that would enable massive dilution and share-count resets without further votes.

check_boxKey Events · Corporate Governance and Compliance · CD

• 20B Share Authorization Proposed

  Proposal Three seeks to increase authorized ordinary shares from 1 billion to 20 billion, creating 19 billion new shares. With 79.4M shares outstanding, this would provide headroom for dilution exceeding 99% if fully utilized.

• Reverse Split Authority Up to 4,000:1

  Proposal Four asks shareholders to let the board execute one or more reverse stock splits at ratios between 2:1 and 200:1 each, with a cumulative cap of 4,000:1, at any time over the next three years without further shareholder approval.

• Board Refresh with Two New Nominees

  Jialin Li is nominated to succeed departing independent director Peter Nobel, and Gregory McGillis is nominated as an additional director, expanding the board to five members if both are elected.

• Auditor Ratification

  Shareholders are asked to ratify Tang Qian & Associates PLLC as the independent auditor for FY2026; the firm was first appointed in January 2026.

auto_awesomeAnalysis · CD · Crypto Assets

Chaince Digital's proxy filing reveals two aggressive capital-structure proposals: a 19-billion-share increase in authorized shares (from 1B to 20B) and blanket authority for the board to execute reverse stock splits at ratios up to 200:1 each, with a cumulative cap of 4,000:1, over the next three years. With 79.4M shares outstanding, the new authorization would create headroom for massive dilution — if fully utilized, existing holders could be diluted by over 99%. The reverse split authorization, while framed as a Nasdaq compliance tool, gives the board sweeping discretion to reset the share count and price without further shareholder votes. Against a backdrop of recent dilutive financings, ongoing losses, and internal-control weaknesses, these proposals signal a board preparing for extreme capital-raising or restructuring scenarios. The filing also refreshes the board with two new nominees and seeks ratification of a relatively new auditor, Tang Qian, appointed in January 2026.