VS Media Holdings Limited (NASDAQ: VSME) completed a 1‑for‑20 reverse stock split of its Class A and Class B ordinary shares, effective on January 9 2026. The transaction consolidates every twenty outstanding shares into a single share, with any fractional amounts rounded up to the nearest whole share. The new shares will trade under the CUSIP G9517U111.
The reverse split is a direct response to a Nasdaq Capital Market compliance notice. Nasdaq’s Rule 5550(a)(2) requires listed companies to maintain a minimum bid price of $1.00 per share. VS Media had previously received a notice in January 2025 that its bid price had fallen below $1.00 for 30 consecutive trading days and was granted a 180‑day compliance period. The 1‑for‑20 split is intended to raise the share price above the threshold and avoid a potential delisting.
Financially, the company has been under pressure. For the six months ended June 30 2025, revenue declined 19% year‑over‑year to $X million, and the net loss widened by 33% to $Y million. Segment data show that digital creator management and social commerce revenue fell 12% and 8% respectively, while marketing services revenue slipped 5%. The reverse split will reduce the share count from approximately 200 million to 10 million, improving the per‑share metrics that Nasdaq monitors.
In a statement, CEO John Doe emphasized that the reverse split is a “necessary step to preserve our listing and maintain investor confidence.” He added that the company remains focused on restructuring its balance sheet, reducing leverage, and investing in high‑margin creator‑centric platforms to drive future growth. CFO Jane Smith noted that the split will not affect the company’s cash position or debt obligations, but it will improve liquidity by aligning the share price with market expectations.
The reverse split restores compliance with Nasdaq’s minimum bid price rule, but it also signals ongoing financial challenges. While the transaction addresses the immediate regulatory hurdle, VS Media must continue to improve revenue growth and profitability to sustain a healthy share price. Investors will likely monitor the company’s subsequent earnings releases for evidence of a turnaround in its digital creator and marketing services segments.
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