Zhongchao Shareholders Approve 1-for-2 Reverse Split and Capital Reduction to Regain Nasdaq Compliance
ZCMD is trading near its 52-week low of $0.712 (11% above the low).
Summary
Zhongchao shareholders approved a 1-for-2 reverse stock split and a capital reduction at the September 18, 2026 EGM, with the split effective on or about September 28, 2026, as part of the company's plan to regain Nasdaq compliance.
Key Events · Corporate Governance and Compliance · ZCMD
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Reverse Split Approved
Shareholders approved a 1-for-2 consolidation of Class A and Class B ordinary shares, with 209,228,486 votes for and 61,676 against. The split takes effect on the 10th calendar day after the resolution passed — on or about September 28, 2026.
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Capital Reduction Approved
Shareholders approved a capital reduction and reorganization that reduces par value from US$1.488 to US$0.00001 per share, creating a distributable reserve of approximately US$10 billion that can be used to eliminate accumulated losses.
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Nasdaq Compliance Objective
The reverse split is intended to raise the share price above Nasdaq's minimum bid requirement, following the company's September 11, 2026 disclosure that it was seeking shareholder approval for the plan.
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Effective Date Set
The Share Consolidation becomes effective on the 10th calendar day following the passing of the resolution — on or about September 28, 2026 — with no fractional shares issued and fractional entitlements rounded up to the next whole share.
Analysis · ZCMD · Trade & Services
At the September 18, 2026 extraordinary general meeting, shareholders overwhelmingly approved the 1-for-2 reverse stock split and the capital reduction and reorganization. The reverse split takes effect on the 10th calendar day after the resolution passed — on or about September 28, 2026 — and is designed to lift the share price above Nasdaq's minimum bid requirement. The capital reduction creates a distributable reserve that can be used to eliminate accumulated losses, cleaning up the balance sheet. This is the final step in the compliance plan first disclosed on September 11, 2026, and the near-unanimous vote (over 99.9% in favor) removes the uncertainty around whether the company could execute the plan.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 34.9% of the 1009 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.52%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ZCMD was trading at $0.79 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $7M. The 52-week trading range was $0.71 to $967.20. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.