Jiuzi Holdings Approves Reverse Stock Split to Maintain Nasdaq Listing

Jiuzi Holdings Inc experienced a significant price increase of 20.96%, crossing above its 5-day SMA, amid a generally weak market environment with the Nasdaq-100 down 0.52% and the S&P 500 down 0.13%.

This surge is attributed to the company's board approving a 1-for-40 reverse stock split to meet Nasdaq's minimum listing requirement of $1.00 per share. The reverse split will reduce the outstanding shares significantly while maintaining ownership percentages for shareholders, which is expected to enhance investor confidence in the company's future prospects.

The decision to implement a reverse stock split reflects the company's proactive approach to stabilize its stock price and ensure compliance with exchange regulations, potentially attracting more investors and improving market sentiment.