TNL Mediagene (TNMG) completed a 1‑for‑20 reverse stock split on the market open of Tuesday, December 23, 2025, consolidating its outstanding shares and raising the per‑share price above Nasdaq’s $1.00 minimum bid‑price requirement. The split, which changed the company’s CUSIP to G8924F121, does not alter shareholders’ proportional ownership or the capital structure but is a critical step to avoid delisting.
The reverse split follows a series of compliance challenges. Nasdaq issued a notification on May 7, 2025 after TNMG’s share price fell below $1.00 for 30 consecutive business days. The company failed to regain compliance by the November 3, 2025 deadline, eliminating a second grace period and forcing the reverse split as the only viable cure under the exchange’s tightened rules.
TNMG’s financial health has been a persistent concern. For FY 2025 the company projected revenue of $49.1 million, well below the Wall Street estimate of $58.17 million, and a net margin of –167.88 %. Operating losses of 95.1 % and a gross margin of 33.3 % reflect heavy cost burdens and limited pricing power in its media and branded‑content segment, which has been pressured by AI‑driven SEO shifts.
Management emphasized that the reverse split is part of a broader capital‑structure optimization plan. In a shareholder letter dated December 19, 2025, co‑founders Joey Chung and Motoko Imada said the company had recently repaid a $4.7 million senior convertible note used for de‑SPAC and Nasdaq listing expenses, reducing dilution and improving liquidity. They also highlighted ongoing cost‑control initiatives that should stabilize margins in the coming quarters.
The market reaction to the announcement was sharply negative, with the stock falling 97.5 % year‑to‑date and trading near $0.20 on the day of the split. Analysts noted that the reverse split signals underlying distress and that the lower‑than‑expected revenue guidance further dampened investor confidence. The event underscores the company’s struggle to meet basic listing requirements while pursuing growth in a highly competitive digital‑media landscape.
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