TAIZHOU, China, Feb. 19, 2021
/PRNewswire/ -- China SXT Pharmaceuticals, Inc.
(NASDAQ: SXTC) ("China SXT" or
the "Company"), a specialty pharmaceutical company focusing on the
research, development, manufacturing, marketing, and sales of
Traditional Chinese Medicine Pieces ("TCMPs"), including Advanced
TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs,
regular TCMPs, and TCM Homologous Supplements
("TCMHS") announced today that a 1 for 4 reverse split of its
ordinary shares was approved by the Company's board of directors on
January 23, 2021 and is expected to
become effective on February 19,
2021, China SXT's ordinary shares is expected to begin trading
on a split-adjusted basis when the market opens on February 22, 2021.
Upon the effectiveness of the reverse share split, the Company's
shareholders will receive one new ordinary share of the Company for
every four shares they hold. The Company's ordinary shares is
expected to begin trading on a split-adjusted basis when the market
opens on February 22, 2021.
The reverse share split is expected to lead the Company's
ordinary shares to trade at approximately four times the price per
share at which it trades prior to the effectiveness of the reverse
share split. The Company, however, cannot assure that the price of
its ordinary shares after the reverse split will reflect the 1 for
4 reverse split ratio, that the price per share following the
effective time of the reverse split will be maintained for any
period of time, or that the price will remain above the pre-split
trading price.
The Company has filed the Amended and Restated Articles and
Memorandum of Association in connection with the reverse share
split. As of February 18, there were
approximately 62,057,584 of the Company's ordinary shares
outstanding. Effecting the 1 for 4 reverse split will reduce that
amount to approximately 15,514,396. The reverse split will not
change the number of the Company's authorized preferred and
ordinary shares, which will remain as unlimited.
Treatment of Stock Options and Restricted
Shares
The number of ordinary shares into which the Company's
outstanding stock options and restricted shares as well as the
options' relevant exercise price per share will be proportionally
adjusted to reflect the reverse split.
Fractional Shares
Any fractional shares that would have resulted because of the
Reverse Split will be rounded up to the nearest whole share.
New Ordinary Share Certificates
The Company will adopt a new share certificate in connection
with the implementation of the reverse share split. The Company's
transfer agent, TranShare, will manage the exchange of share
certificates. Shareholders of record will receive a letter of
transmittal providing instructions for the exchange of their old
certificates as soon as practicable following the effectiveness of
the reverse split. Shareholders should not send in their old stock
certificates until they receive a letter of transmittal from
TranShare. Registered shareholders holding pre-split shares of the
Company's ordinary shares electronically in book-entry form are not
required to take any action to receive post-split shares.
Shareholders who hold their shares through a securities broker or
nominee (i.e., in "street name") will be contacted by their brokers
or nominees with any instructions. For more information,
shareholders and securities brokers should contact TranShare at
(303) 662-1112.
About China SXT Pharmaceuticals, Inc.
Founded in 2005 and headquartered in Taizhou City, Jiangsu
Province, China, China SXT Pharmaceuticals, Inc. is an
innovative pharmaceutical company focusing on the research,
development, manufacture, marketing and sales of traditional
Chinese medicine pieces, which is a type of Traditional Chinese
Medicine that has been processed to be ready for use. For more
information, please visit www.sxtchina.com.
Safe Harbor Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may, "will, "intend," "should," "believe," "expect," "anticipate,"
"project," "estimate" or similar expressions that do not relate
solely to historical matters, it is making forward-looking
statements. Specifically, the Company's statements regarding the
closing of the proposed private placement are forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that may cause the
actual results to differ materially from the Company's expectations
discussed in the forward-looking statements. These statements are
subject to uncertainties and risks including, but not limited to,
the following: the Company's goals and strategies; the Company's
future business development; product and service demand and
acceptance; changes in technology; the growth of the pharmaceutical
market, particularly the Traditional Chinese Medicine Pieces
("TCMPs") market, in China; reputation and brand; the impact
of competition and pricing; government regulations; fluctuations in
general economic and business conditions in China and the
international markets the Company serves and assumptions underlying
or related to any of the foregoing and other risks contained in
reports filed by the Company with the Securities and Exchange
Commission. For these reasons, among others, investors are
cautioned not to place undue reliance upon any forward-looking
statements in this press release. Additional factors are discussed
in the Company's filings with the U.S. Securities and Exchange
Commission, which are available for review at www.sec.gov. The
Company undertakes no obligation to publicly revise these
forward - looking statements to reflect events or
circumstances that arise after the date hereof.
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SOURCE China SXT Pharmaceuticals, Inc.