ATIF Holdings Limited (ATIF) shares declined 5.45% in after-hours on Friday, August 20, 2021, and closed the weekly trading at $0.48. However, in the regular trading session of Friday, ATIF’s stock gained 13.26%. ATIF shares have fallen 62.79% over the last 12 months, and they have moved down 36.11% in the past week. Over the past three months, the stock has lost 47.33%, while it has slid down 70.70% over the past six months.
Let’s see why did it face negativity in the after-hours on Friday?
Reverse Stock Split of ATIF ordinary shares
On August 19, 2021, ATIF Holdings Limited (ATIF), announced that a reverse stock split of its authorized, issued, and outstanding ordinary shares, par value $0.001 per share, at a ratio of 5-for-1 was approved by its Board of Directors, on August 12, 2021. Shareholders otherwise entitled to receive a fractional share as a result of the Reverse Split will receive a whole share in place of such fractional share. In connection with the Reverse Split, a vote of the shareholders of the Company is not required and as such, no shareholder vote or meeting of shareholders will be held.
As a result of the Reverse Split, the Company’s issued and outstanding ordinary shares will be reduced from 45,806,952 to approximately 9,161,390.
Non-compliance notice from Nasdaq
On July 26, 2021, ATIF Holdings Limited received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market indicating that the Company is not in compliance with the minimum bid price requirement of US$1.00 per share under the Nasdaq Listing Rules.
To regain compliance with the Listing Rules, the Company’s listed securities must be at least US$1.00 for a minimum of ten consecutive business days.
ATIF’s Chairman’s huge investment
On June 24, 2021, ATIF Holdings Limited announced that its newly launched ATIF-1 Hedge Fund has received a US$1 million subscription through President and Chairman of the Board, Jun Liu’s investment. The subscription is a firm expression of Liu Jun’s support and endorsement of the fund’s management team and his belief that ATIF-1 Hedge Fund will provide investors with substantial returns in the future.
ATIF management team shuffled
On April 26, 2021, ATIF Holdings Limited announced that President and Chairman of the Board, Jun Liu has assembled a team of professionals with vast experience in capital markets and finance industry to enhance shareholder value for our investors, and appointed Ian Zhou as Chief Executive Officer of the Group’s asset investment division.
Conclusion
In our opinion, the reverse stock split was the reason behind its early gains on Friday but we are unable to find any reason behind its loss in the after-hours on Friday. We hope that it will commence the new week with a positive performance on Monday.
