EPWK Holdings Ltd. completed a 40‑for‑1 reverse split of its Class A and Class B shares on November 17, 2025, following board approval on October 20, 2025. The action reduces the number of outstanding shares to roughly 3.6 million Class A and 88,900 Class B, and is intended to bring the company back into compliance with Nasdaq’s minimum bid price rule.
The reverse split increases the par value of each share from $0.0001 to $0.004 and restructures the authorized capital to 225 million Class A and 25 million Class B shares, with a total authorized capital of $1 million. The company’s CUSIP will change to G30905114, and the consolidation will be reflected under the same ticker, EPWK.
EPWK had received a delisting notice after its stock price fell below $0.10 for ten consecutive trading days, a breach of Nasdaq’s Marketplace Rule 5550(a)(2). The reverse split is a standard remedy to raise the bid price, but the company must also satisfy other Nasdaq listing requirements, especially after rule changes effective October 7, 2024 that restrict using reverse splits to cure a minimum bid price deficiency if it creates other violations.
The company has also raised approximately $8 million in a recent public offering and is launching a bilingual e‑commerce platform, EPWK Curated Goods, alongside a tiered membership system for creative professionals. These initiatives aim to generate recurring revenue and improve user retention, while the reverse split seeks to stabilize the company’s market presence.
The consolidation does not alter EPWK’s underlying business model or operations. However, it signals the company’s commitment to maintaining its Nasdaq listing amid ongoing financial challenges, including negative operating and net margins and a current ratio of 0.17. The move is intended to provide a clearer path to compliance and to reassure investors that the company is taking concrete steps to address liquidity and regulatory issues.
While the reverse split is a necessary compliance measure, EPWK’s broader strategy will depend on the success of its new platforms and the ability to improve profitability. Management remains focused on cost discipline and strategic investments, but the company’s financial health remains fragile, underscoring the importance of the consolidation as a stabilizing measure.
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