Ten‑League International Holdings Limited announced a 1‑for‑10 reverse share split. The board of directors approved the split on April 6, 2026, and shareholders gave their consent at an extraordinary general meeting on April 13, 2026. The split will take effect on May 1, 2026, raising the par value from US$0.000025 to US$0.00025 per share and reducing the total number of shares to approximately 2,940,435.
The reverse split is intended to lift the company’s share price above Nasdaq’s $1.00 minimum bid price requirement. The action follows a deficiency notice issued by Nasdaq on September 9, 2025, and a delisting determination made on March 10, 2026. Maintaining the listing is essential for Ten‑League to continue accessing public capital markets and to avoid the severe liquidity constraints that would accompany a delisting.
The company’s stock is trading at US$0.25, down from a high of US$7 over the past year, and its market capitalization sits in the micro‑cap range of roughly US$7‑$8 million. High leverage and limited liquidity have contributed to the low valuation, making the reverse split a critical step in stabilizing the company’s capital structure.
Ten‑League’s FY2025 guidance projects revenue growth of 28.2%–29.9% and net income growth of 165.4%–191.9%, with earnings per share expected to rise sharply. The guidance reflects confidence in core segments—heavy equipment sales and rentals, engineering consultancy, and specialized machinery for ports and construction—despite the current market perception.
Management has authorized the board to pursue additional share consolidations ranging from 2‑for‑1 to 20‑for‑1 within the next two years, signaling a long‑term strategy to manage share price volatility and maintain compliance with Nasdaq requirements.
The reverse split is a regulatory response rather than a strategic expansion, but it underscores the company’s ongoing effort to stabilize its capital structure and preserve investor access amid challenging market conditions.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.