Future FinTech Announces 1-for-4 Reverse Stock Split, Shares Fall 13%

Future FinTech Group Inc shares fell 13.09% to $0.59 in after-hours trading Wednesday after the company disclosed details of a 1-for-4 reverse stock split.

The stock dropped 0.31% to close at $0.68 in regular trading Wednesday, then fell 13.09% to $0.59 in after-hours trading.

Future FinTech Group is a financial and technology service provider.

1-for-4 Reverse Stock Split

Future FinTech said its board approved a 1-for-4 reverse split of its common stock. The company has filed amendments with the Florida Secretary of State, with the split expected to take effect at 4:00 PM ET on August 28.

The company said FTFT will begin trading on a reverse-split-adjusted basis at the open of trading on August 31 on the Nasdaq Capital Market, under its existing ticker symbol and new CUSIP number 36117V600.

Outstanding Shares to Drop to 8.08 Million

Upon implementation, every four shares of outstanding common stock will automatically convert into one share of common stock.

Future FinTech said its outstanding common shares will decrease from approximately 32.31 million to approximately 8.08 million. The company said each shareholder's ownership percentage will remain unchanged, except for minor adjustments due to fractional shares.

No fractional shares will be issued. Holders who would otherwise receive fractional shares will receive one whole share, rounded up.

Nasdaq Compliance

The company said the reverse stock split is intended to support its ability to regain and maintain compliance with Nasdaq's continued listing standards.

Future FinTech's filing stated that if the reverse split fails to result in the stock price sustainably rising to at least $1, the company could face risks. The company also noted the stock could fall below $1 afterward, potentially leading to non-compliance or delisting procedures.

The company warned that Nasdaq rules may also limit its ability to execute another reverse split within one year to regain compliance with the minimum bid price requirement.

Trading Metrics

Future FinTech's market capitalization is approximately $21.92 million.

The stock's 52-week high is $62.08, and its 52-week low is $0.59.

FTFT shares have fallen 99.53% over the past year. The company's stock shows negative price trends across all time frames.