Tian Ruixiang (NASDAQ:TIRX) stock is rocketing higher on Thursday after announcing plans for an extraordinary general shareholders meeting.
Tian Ruixiang will be holding this special shareholder meeting on May 6. The big topic of the meeting will be a vote for shareholders to approve a reverse stock split of TIRX shares.
Tian Ruixiang wants investors to sign off on a 1-for-5 reverse stock split of its shares. This share consolidation would affect both its Class A and Class B shares. It would also see the Chinese insurance company amend its authorized share capital.
What’s Behind the TIRX Reverse Stock Split?
Tian Ruixiang says that the reverse stock split is being sought to boost the price of its shares. The company’s stock is currently trading below the $1 minimum required to maintain a listing on the Nasdaq Exchange.
Tian Ruixiang was sent a notice of its delisting due to its low share price in November. It was given until May 28, 2024, to get its shares back above the minimum required for compliance. If approved, the company will enact the reverse stock split on the fifth business day after the shareholder meeting.
TIRX stock is up 209% as of Thursday morning, with more than 11 million shares traded. That’s well above its daily average trading volume of about 384,000 shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
