CXI Healthcare Decides 5-to-1 Reverse Stock Split to Stabilize Share Price and Enhance Corporate Value

CXI Healthcare decided at its board meeting on July 21 2026 to conduct a 5-to-1 reverse stock split to stabilize the share price and enhance corporate value by maintaining an appropriate number of outstanding shares.
As a result of the stock split, the total number of common shares will decrease from 16,669,660 to 3,333,932 and the par value per share will change from 741 KRW to 3,705 KRW. The company is a Cayman Islands entity with a par value of 0.5 USD per share pre-split and 2.5 USD post-split using an exchange rate of 1,482 KRW per USD.
The effective date of the stock split is August 27 2026 and trading will be suspended from August 25 to October 5 2026 with the new shares expected to be listed on October 6 2026.
This action is not a capital reduction and is subject to shareholder approval at the extraordinary general meeting.
[AI Summary]CXI Healthcare's 5-to-1 reverse stock split aims to stabilize the stock price through share consolidation but does not change the underlying equity or corporate value resulting in a neutral impact on shareholder value. The trading suspension period will temporarily reduce liquidity and the stock price may adjust after resumption.