The 30-for-1 share consolidation, or reverse stock split, for MicroAlgo Inc. (MLGO) became effective on July 18, 2025, following shareholder approval at an Extraordinary General Meeting on July 2, 2025.1 The primary objective of this action was to help MLGO regain and maintain compliance with Nasdaq's minimum bid price requirement of $1.00 per share, as well as to provide greater flexibility for future fundraising activities.2
The consolidation had a direct and proportional impact on MLGO's per-share metrics:
- Share Price: The market price of each share theoretically increased by a factor of 30. For example, if a share traded at $0.10 before the consolidation, its theoretical value would be $3.00 immediately after.
- Outstanding Shares: The total number of issued and outstanding shares was reduced by a factor of 30. For instance, approximately 373 million shares outstanding were reduced to about 12.4 million shares.2
- Earnings Per Share (EPS) and Book Value Per Share: These metrics increased proportionally by a factor of 30, as the company's total earnings or book value remained unchanged while the number of shares decreased.3
- Par Value: The par value of the ordinary shares was adjusted from US$0.20 to US$6.00 per share, reflecting the 30-for-1 ratio.4
- Warrants and Options: The exercise price of any outstanding stock options and warrants increased proportionally, and the number of shares underlying these instruments decreased proportionally.5
It's important to note that while per-share metrics changed, the overall value of shareholder equity in the company remained unchanged by the consolidation itself.6 The company also indicated that all shares and per-share data for prior periods would be retroactively restated to reflect the consolidation for comparability.1
