UTime Executes 10:1 Reverse Split, Cancels Shares, and Grants 900K Shares to Directors

summarizeSummary

UTime completed a 10:1 reverse stock split to meet Nasdaq's minimum bid price, canceled shares from a prior placement, and issued 900,000 restricted shares to its five directors.

check_boxKey Events · Corporate Governance and Compliance · FXHO

• 10:1 Reverse Stock Split Completed

  Effective June 22, 2026, UTime consolidated every 10 Class A ordinary shares into one, reducing authorized Class A shares from 900 million to 90 million and increasing par value from $0.5 to $5.0 to regain Nasdaq compliance.

• 3,672 Shares Canceled from 2025 Placement

  On July 13, 2026, the company canceled 3,672 Class A ordinary shares issued to 23 offshore investors in a 2025 private placement due to payment issues, reducing outstanding shares.

• Directors Granted 900,000 Restricted Shares

  On July 22, 2026, each of the five directors received 180,000 restricted Class A ordinary shares under the 2026 Equity Incentive Plan, totaling 900,000 shares, aligning insider interests but adding dilution.

• Nasdaq Compliance Effort

  The reverse split aims to increase the per-share trading price to maintain Nasdaq's minimum bid price requirement, a critical step to avoid delisting.

auto_awesomeAnalysis · FXHO · Manufacturing

To regain Nasdaq compliance, UTime completed a 10-for-1 reverse stock split effective June 22, 2026, shrinking authorized Class A shares from 900 million to 90 million. Separately, 3,672 shares from a failed 2025 private placement were canceled, and each of the five directors received 180,000 restricted shares under the 2026 Equity Incentive Plan. While the reverse split is a critical move to avoid delisting, the director grants signal insider alignment but also introduce dilution.