06:10 PM EDT, 03/21/2024 (MT Newswires) -- ETAO International ( ETAO ) said Thursday that a 1-for-20 reverse split, increase of authorized shares and alteration of share capital will become effective around March 26.

The split will go into effect before the market opens on March 26, the company said.

ETAO ( ETAO ) said after increasing authorized shares and alteration of share capital following the reverse split, its authorized share capital will consist of 200 million ordinary shares, including 150 million class A shares and 50 million class B shares, and 50 million preferred shares.

All of the company's outstanding shares, excluding 49.6 million owned by Chief Executive Officer Wensheng Liu, will be converted to class A ordinary shares, ETAO ( ETAO ) said.

Shares owned by Liu will be re-designated as class B ordinary shares and will be entitled to 30 votes compared with 1 vote per class A ordinary share.

Prior to the re-designation, Liu had 48.5% of the total voting power, and following the reclassifcation, Liu will have 86.7% of the total voting power, the company said.

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