NANPING, China, Oct. 10, 2022 (PRNewswire) — Happiness Development Group Limited (“HAPP”), a diversified company listed on NASDAQ, specializing in nutraceutical production, e-commerce solutions, and automotive sales, announced the implementation of a 1-for-20 reverse stock split, effective October 10, 2022. This decision was ratified by shareholders on October 7, 2022.
As a result of the reverse split, shareholders will receive one new ordinary share for every twenty shares they currently hold. The adjusted ordinary shares are expected to commence trading at the new split-adjusted prices starting October 11, 2022.

This strategic move aims to elevate the price of the Company’s Class A ordinary shares to approximately twenty times the trading price prior to the split. However, the Company cautions that there is no guarantee that the post-split share price will align precisely with the 1-for-20 ratio, nor that it will maintain the increased price over time.

In conjunction with the reverse split, HAPP has filed the Amended and Restated Articles and Memorandum of Association. Before the split, approximately 66,854,583 Class A ordinary shares and 12,245,000 Class B ordinary shares were outstanding. The reverse split will reduce the outstanding Class A shares to about 3,342,740 and Class B shares to around 612,255.

Additionally, shareholders approved an increase in the Company’s authorized shares, which now allows for the issuance of up to 350,000,000 Class A ordinary shares, 100,000,000 Class B ordinary shares, and 50,000,000 preferred shares, all with a par value of $0.01.