ADDENTAX GROUP CORP (OTCMKTS:ATXG) Files An 8-K Material Modification to Rights of Security Holders
Item 3.03 Material Modification to Rights of Security Holders
On January 24, 2019, the Board of Directors of Addentax Group Corp., a Nevada corporation (the Company), approved a reverse stock split of the Companys issued and outstanding shares of common stock, par value $0.001 per share (the Common Stock), at a ratio of 1-for-20 (the Reverse Stock Split). Under Nevada Revised Statutes (NRS) Section 78.207, the Company may decrease its authorized shares of Common Stock and correspondingly decrease its number of issued and outstanding shares of Common Stock by resolution adopted by the board of directors, without obtaining the approval of the stockholders. The Reverse Stock Split was effected by the Company filing a Certificate of Change (the Certificate) to NRS Section 78.209 with the Secretary of State of the State of Nevada on February 27, 2019 (the Effective Date).
As a result of the filing of the Certificate, the number of shares of the Companys authorized Common Stock was reduced from 1,000,000,000 shares to 50,000,000 shares and the issued and outstanding number of shares of the Companys Common Stock was correspondingly decreased to 25,346,004. There was no change to the par value of the Companys Common Stock.
The Common Stock is quoted for trading on the OTC Markets Inc. OTCQB Marketplace under the symbol ATXG. The change in the shares will be effective at the open of business on March 5, 2019 under a new symbol ATXGD. The D will be removed in 20 business days and the symbol will then change back to ATXG.
Split Adjustment; Treatment of Fractional Shares:
On the Effective Date, the total number of shares of Common Stock held by each stockholder of the Company will be converted automatically into the number of shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by each such stockholder immediately prior to the Reverse Stock Split, divided by (ii) 20, with such resulting number of shares rounded up to the nearest whole share. The Company will issue one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split. As a result, no fractional shares will be issued in connection with the Reverse Stock Split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split.
Certificated and Non-Certificated Shares:
Stockholders who are holding their shares in electronic form at brokerage firms do not need to take any action, as the effect of the Reverse Stock Split will automatically be reflected in their brokerage accounts. Stockholders holding paper certificates may (but are not required to) send the certificates to the Companys transfer agent and registrar, TRANSFER ONLINE, INC. at the address set forth below. Transfer Online, Inc. will issue a new stock certificate reflecting the Reverse Stock Split to each requesting stockholder.
Transfer Online, Inc.
512 SE Salmon St.
Portland, OR 97214
The Reverse Stock Split has no effect on the par value of the Common Stock. Immediately after the Reverse Stock Split, each stockholders percentage ownership interest in the Company and proportional voting power will remain unchanged, except for minor changes and adjustments that will result from the treatment of fractional shares. The rights and privileges of the holders of shares of Common Stock will be substantially unaffected by the Reverse Stock Split.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The description under Item 3.03 above of the reduction in the number of shares of the Companys authorized and issued and outstanding Common Stock is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
ADDENTAX GROUP CORP. Exhibit
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About ADDENTAX GROUP CORP (OTCMKTS:ATXG)
Addentax Group Corp. is a development-stage company. The Company is working on a field of producing images on a multiple surfaces, such as glass, leather, plastic, ceramic, textile, and others using three-dimensional (3D) sublimation vacuum heat transfer machine. The 3D sublimation vacuum heat transfer machine does not require technical skills for product production. A set of printing machines includes the machine itself and all raw materials for setting up and testing, and raw materials for production process. Materials for images can be varied, such as ceramics, glass, crockery, metal, clothing, caps, bags, leather products and other products. Its products are intended for individuals, business owners associated with the sale of souvenirs, and business owners intending to order souvenirs in the corporate style. It also intends to conclude a contract of carriage with local shipping companies for delivery of its goods to cities such as Meknes, Rabat, Kenitra and across the world.