(RTTNews) - Hitek Global Inc. (HKIT), an information technology consulting and solutions provider, Wednesday announced that it will commence a reverse stock split at a ratio of 1-for-25, effective July 6.
With the reverse split becoming effective, every three issued and unissued Class A ordinary shares will automatically be combined into one Class A ordinary share with par value changing from $0.015 to $0.375.
On July 6, the company's Class A ordinary shares will begin trading on Nasdaq on a split adjusted basis under the same trading symbol 'HKIT'.
The IT company said that no fractional shares will be issued in connection to the reverse stock split and any fractional share resulting from the reverse split will be rounded up to the nearest whole share at the participant level.
"Prior to the Reverse Split, there were 19,996,492 Class A Ordinary Shares and 8,192,000 Class B ordinary shares issued and outstanding; following the Reverse Split, the Company expects that there will be 799,860 Class A Ordinary Shares and 8,192,000 Class B Ordinary Shares issued and outstanding." Hitek Global said in a statement.
In pre-market activity, HKIT shares were trading at $0.22, down 22.54% on the Nasdaq.
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