CIMG Inc. (NASDAQ: IMG) announced a 20‑for‑1 reverse stock split of its common shares, which will take effect on December 5, 2025 at 12:01 a.m. Eastern Time. The split will reduce the number of shares outstanding from roughly 309.7 million to about 15.5 million and will be reflected under the same ticker, IMG, with a new CUSIP of 67073S406.
The reverse split is a proactive measure to strengthen the company’s capital structure and to maintain compliance with Nasdaq’s continued listing requirements, which include a minimum bid price of $1.00 per share. By consolidating shares, the company aims to lift its per‑share price above the threshold and avoid the risk of delisting that has previously threatened its Nasdaq status.
CIMG’s financial performance has been severely deteriorating. For the six months ended March 31, 2025, revenue fell to $0.022853 million from $1.29 million a year earlier, and the company posted a net loss of $1.92 million versus $3.8 million in the prior year. The company also reports negative EBITDA and a significant cash burn, raising doubts about its ability to continue as a going concern and underscoring the urgency of the reverse split and potential capital‑raising efforts.
The company is in the midst of a strategic pivot, moving from specialty coffee to broader functional beverages in Asia and acquiring stakes in Chinese firms. This transition reflects an attempt to diversify revenue streams, but the current financial strain suggests that the shift has not yet translated into sustainable profitability or revenue growth.
CIMG has a history of reverse splits, including a 1:35 split on December 29, 2022 and a 1:3 split on November 12, 2019. The company also faced a Nasdaq delisting determination due to filing delays, which it plans to appeal. The new reverse split is part of a broader effort to address compliance and financial challenges while positioning the company for future growth.
The reverse split, while a routine corporate action, signals the company’s ongoing struggle to meet regulatory requirements and stabilize its financial footing. Investors and stakeholders will watch how the company manages its cash burn, pursues new revenue opportunities, and navigates the Nasdaq compliance landscape in the coming months.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.