Paranovus Entertainment Technology Ltd. (NASDAQ: PAVS) announced a 1‑for‑100 reverse share split that will take effect at the open of business on December 18, 2025. The split will reduce the number of issued and outstanding Class A ordinary shares from roughly 350 million to about 3.5 million, setting a new par value of $1 per share and keeping the company’s ticker unchanged.
The reverse split is a direct response to a Nasdaq deficiency notice issued on July 11, 2025, which cited the company’s failure to maintain a minimum bid price of $1.00 for 30 consecutive business days. The company had until January 7, 2026 to regain compliance, and the split is intended to bring the share price back above the exchange’s threshold and preserve its listing on the Nasdaq Capital Market.
Paranovus’ decision comes after a dramatic turnaround in its financial results. For the six months ended September 30, 2025, the company reported revenue of $12.41 million—an 18,037% year‑over‑year increase—and a net profit of $97,708, compared with a net loss of $412,181 in the same period a year earlier. The surge is largely attributable to the company’s strategic pivot away from legacy e‑commerce and advertising businesses toward AI‑powered entertainment and TikTok‑based e‑commerce solutions, a shift accelerated by the March 2025 acquisition of Bomie Wookoo Inc., a New York‑based influencer‑marketing platform.
CEO Xiaoyue Zhang described the interim performance as “a defining milestone” that demonstrates the company’s ability to generate profit after a period of losses. The results underscore the effectiveness of the company’s focus on high‑margin AI and social‑commerce services, which have attracted new U.S. customers and increased revenue from digital‑content licensing.
While the reverse split is largely a cosmetic measure to meet exchange requirements, it signals ongoing volatility in the company’s share price and highlights the importance of maintaining regulatory compliance. The financial turnaround, however, provides a more substantive foundation for future growth, suggesting that Paranovus’ strategic realignment is beginning to pay off and may position the company for sustained profitability in the competitive AI and social‑commerce landscape.
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