Datasea Board Approves 1-for-10 Reverse Stock Split

TL;DR

**Datasea just did a 1-for-10 reverse stock split to pump up its share price.**

AI Summary

Datasea Inc. filed an 8-K on January 18, 2024, reporting that on January 16, 2024, its Board of Directors approved a 1-for-10 reverse stock split of its common stock. This means for every ten shares an investor currently owns, they will now own one share, but the value of their total holding should remain the same. This action is often taken to increase the stock price per share and maintain listing compliance, which is crucial for investors as it can impact the stock's liquidity and perception.

Why It Matters

A reverse stock split can boost the per-share price, potentially helping Datasea Inc. meet exchange listing requirements and attract institutional investors, which could stabilize or increase the stock's value.

Risk Assessment

Risk Level: medium — Reverse stock splits often signal underlying financial challenges or low stock prices, and while they can help with listing compliance, they don't guarantee long-term stock performance improvement.

Analyst Insight

A smart investor would monitor Datasea Inc.'s stock performance post-split to see if the higher share price attracts new investors or if the underlying business fundamentals remain unchanged, as reverse splits don't inherently improve company value.

Key Numbers

• 1-for-10 — reverse stock split ratio (means every 10 shares become 1 share)

Key Players & Entities

• Datasea Inc. (company) — the registrant that filed the 8-K
• Board of Directors (company) — approved the reverse stock split
• January 16, 2024 (date) — date of the earliest event reported (reverse stock split approval)
• January 18, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Datasea Inc.'s stock price per share will increase immediately following the effective date of the reverse stock split. (Datasea Inc.) — high confidence, target: 2024-01-31
• Datasea Inc. will maintain its listing on its current exchange due to the increased share price from the reverse stock split. (Datasea Inc.) — medium confidence, target: 2024-06-30

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value DTSS The Nasdaq Stock Mar
• $1.00 — ice of the Company's Common Stock above $1.00 per share and bring the Company back in

Filing Documents

• ea191675-8k_dataseainc.htm (8-K) — 32KB
• ea191675ex3-1_dataseainc.htm (EX-3.1) — 2KB
• ea191675ex99-1_dataseainc.htm (EX-99.1) — 10KB
• ex3-1_001.jpg (GRAPHIC) — 300KB
• ex3-1_002.jpg (GRAPHIC) — 664KB
• ex99-1_001.jpg (GRAPHIC) — 5KB
• 0001213900-24-004582.txt ( ) — 1556KB
• dtss-20240116.xsd (EX-101.SCH) — 3KB
• dtss-20240116_lab.xml (EX-101.LAB) — 33KB
• dtss-20240116_pre.xml (EX-101.PRE) — 22KB
• ea191675-8k_dataseainc_htm.xml (XML) — 3KB

03 Material Modification to Rights of Security Holders

Item 3.03 Material Modification to Rights of Security Holders. The board of directors ("Board") of Datasea Inc., a Nevada corporation (the "Company"), approved a reverse stock split of the Company's authorized and issued and outstanding shares of common stock, par value $0.001 per share ("Common Stock"), at a ratio of 1-for-15 (the "Reverse Stock Split"). The Reverse Stock Split will become legal effective as of 5:01 p.m. Eastern Standard Time on January 19, 2024 (the "Legal Effective Date"), and the Common Stock will open for trading on The Nasdaq Stock Exchange ("NASDAQ") on a reverse split-adjusted basis on January 23, 2024, under the existing trading symbol "DTSS". Reason for the Reverse Stock Split . The Company is effectuating the Reverse Stock Split in order to raise the per share bid price of the Company's Common Stock above $1.00 per share and bring the Company back into compliance with Nasdaq Listing Rule 5550(a)(2). The Company will have regained compliance once the Company's Common Stock trades at or above $1.00 per share for a minimum of 10 consecutive trading days, at which time Nasdaq will provide the Company with notice that it has regained compliance. Effects of the Reverse Stock Split. On the Legal Effective Date, every fifteen (15) shares of the Common Stock issued and outstanding or held as treasury stock will be automatically reclassified into one (1) new share of Common Stock. The total number of shares of Common Stock authorized for issuance will then be reduced by a corresponding proportion from 375,000,000 shares to 25,000,000 shares of Common Stock. The par value per share of the Common Stock will remain unchanged at $0.001 per share. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 238116305. Each shareholder's percentage for minor changes and adjustments that

03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. The information set forth in Item 3.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 5.03. A copy of the Certificate is attached hereto as Exhibit 3.1 and is incorporated herein by reference.

01 Other Events

Item 8.01 Other Events. On January 18, 2024, the Company issued a press release disclosing the Reverse Stock Split and the effects thereof. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

01. Financial Statement and Exhibits

Item 9.01. Financial Statement and Exhibits. (d) Exhibits. Exhibit No. Description 3.1 Certificate of Change, filed on January 16, 2024 99.1 Press Release, dated January 18, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DATASEA INC. January 18, 2024 By: /s/ Zhixin Liu Name: Zhixin Liu Title: Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR