Cheer Holding announces share consolidation to avoid Nasdaq delisting
Cheer Holding Inc's stock fell by 21.00% as it crossed below the 5-day SMA, reflecting significant market pressure.
The decline is attributed to Cheer Holding's announcement of a 1-for-50 share consolidation to address Nasdaq delisting risks, following a notification due to its stock price closing below $0.10 for ten consecutive trading days. The consolidation aims to reduce outstanding shares from approximately 234 million to about 4.7 million, thereby increasing the per-share trading price to meet Nasdaq's continued listing requirements.
This strategic move is set to take effect on December 22, 2025, and is intended to strengthen the company's compliance foundation ahead of a hearing scheduled for January 13, 2026. However, the future outcomes of this plan remain uncertain.
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