BEIJING, Oct. 23, 2020 /PRNewswire/ -- Lianluo Smart
Limited ("LLIT" or the "Company") (NASDAQ: LLIT), a China based professional smart service and
products provider, today announced that the Company has effected a
one-for-eight (1-for-8) reverse stock split of Class A common
shares, par value $0.002731 per
share, and Class B common shares, par value $0.002731 per share, of the Company.
On April 8, 2020, the Company held
a special shareholder meeting, at which time the Company's
shareholders approved the reverse stock split and authorized the
board of directors to implement the reverse stock split and
determine the ratio of the split within a range of not less than
1-for-2 or greater than 1-for-20. Thereafter, the board of
directors determined to fix the ratio for the reverse stock split
at 1-for-8. The Company has filed an amended and restated
memorandum and articles of association with the Registry of
Corporate Affairs of the British Virgin
Islands to effectuate the reverses stock split. The
reverse stock split is being effected in order to increase the per
share trading price of the Company's Class A common shares to
satisfy the $1.00 minimum bid price
requirement for continued listing on The Nasdaq Capital Market.
The Company's Class A common shares are expected to begin
trading on a split-adjusted basis when the market opens on
October 26, 2020 under the current
symbol "LLIT" but with a new CUSIP number.
Following the reverse stock split, the authorized number of
Class A common shares has been reduced from 37,888,889 to
4,736,111, par value $0.021848 per
share, and the authorized number of Class B common shares is
reduced from 12,111,111 to 1,513,889, par value $0.021848 per share. In addition, as a
result of the reverse stock split, the Company has approximately
2,210,683 Class A common shares and 1,388,888 Class B common shares
issued and outstanding. All outstanding options, warrants and
other rights to purchase the Company's Class A and Class B common
shares are adjusted proportionately as a result of the reverse
stock split. The number of shares authorized for issuance under the
Company's stock option plans are also proportionately reduced to
reflect the reverse stock split.
The Company will not issue fractional shares of its Class A and
Class B common shares following the reverse stock split. In lieu of
fractional shares, the Company's shareholders will receive a cash
payment for the fair value of their fractional shares based on the
closing price of the Company's Class A common shares on the NASDAQ
Stock Market as of October 26, 2020,
the expected first trading day of the Class A common shares on a
split-adjusted basis.
The company's transfer agent, Computershare Limited
("Computershare"), is acting as the exchange agent for the reverse
stock split. Computershare will provide instructions to
shareholders of record regarding the exchange of stock
certificates. Shareholders who hold their shares in brokerage
accounts or "street name" are not required to take any action to
effect the exchange of their shares.
About Lianluo Smart Limited
Lianluo Smart Limited (Nasdaq: LLIT) is a professional smart
service and products provider, which designs, develops and markets
its own branded medical products and medical components in
China.
Forward-Looking Statements
This announcement contains forward-looking statements. All
statements, other than statements of historical fact included
herein, are "forward-looking statements" in nature within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements, often identified by the use of
forward-looking terminologies such as "believes", "expects" or
similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that
are filed with the Securities and Exchange Commission and available
on its website (http://www.sec.gov).
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SOURCE Lianluo Smart Limited