Republic Power Group Limited announced a 1‑for‑20 reverse share split of its Class A ordinary shares, with the split taking effect at the open of business on February 23 2026. The action is intended to bring the share price back into compliance with Nasdaq’s minimum bid‑price requirement of $1.00 per share.
The reverse split will reduce the number of issued and outstanding Class A shares from 62,025,000 to approximately 3.1 million and increase the par value from $0.000625 to $0.0125 per share. Fractional shares held in book‑entry or brokerage accounts will be rounded up to the nearest whole share.
The move follows a Nasdaq bid‑deficiency notice issued on January 5 2026, which flagged the company for trading below $1 for 30 consecutive business days. Earlier in January, the company diluted shareholders by issuing 44,775,000 Class A shares at $0.20 per share, a transaction that contributed to the decline in the share price.
Despite the reverse split, Republic Power Group remains profitable over the past year, reporting gross profit margins of 79.19%. However, the company posted a net loss of $1.85 million in Q3 2025 and a debt‑to‑equity ratio of 65.68%, indicating liquidity concerns that may affect future performance.
Management has not issued a detailed outlook beyond the compliance objective, but the company earlier announced a non‑binding memorandum of understanding with NVT to pursue blockchain‑enabled asset tokenization. That announcement was met with a negative market reaction, reflecting investor skepticism about the company’s strategic initiatives.
Investors have responded skeptically to the reverse split, viewing it as a cosmetic fix rather than a solution to underlying business challenges. The announcement was met with a negative market reaction, underscoring concerns about the company’s ability to sustain a higher share price without addressing core operational issues.
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