CLAREMONT, CA, （Jan. 28, 2016） — Kiwa Bio-Tech Products Group Corporation (OTC:KWBT) (“Kiwa” or “the Company”) announced that on January 28, 2016 (the “Effective Date”) it effected a one (1) for 200 reverse split of its common stock par value $0.001 (the “Reverse Split”).
The Company affected the Reverse Split pursuant to an amendment to its Certificate of Incorporation filed with the Delaware Secretary of State on January 14, 2016 which became effective at the opening of the market on the Effective Date. On the Effective Date, each 200 shares of issued and outstanding common stock par value $0.001 combined into one share of common stock par value $0.001. No fractional shares are to be issued and all such fractional shares will be rounded up to a whole share. The Company’s common stock will begin trading on a split-adjusted basis on the Effective Date under a new CUSIP number (49834X 205). The Company’s ticker symbol “KWBT” remains unchanged; however the ticker symbol will be represented as “KWBTD” for 20 trading days following the effectiveness of the Reverse Split.
In addition to the implementation of the Reverse Split, the Company amended its Certificate of Incorporation effective January 28, 2016 to reduce the Company’s authorized capital to 120,000,000 shares, comprising 100,000,000 shares of Common Stock par value $0.001 and 20,000,000 shares of Preferred Stock par value $0.001. As a result of the Reverse Split the number of outstanding common shares was reduced from 400,000,000 to approximately 2,000,000, subject to adjustment for fractional shares.
It is not necessary for shareholders holding shares of the Company’s common stock in certificated form to exchange their existing stock certificates for new stock certificates of the Company in connection with the Reverse Split although shareholders may do so if they wish. Shareholders should direct any questions concerning the Reverse Split to their broker or the Company’s transfer agent. Fidelity Transfer Company, 8915 S. 700 E. Suite 102, Sandy, UT 84070; Phone: 801-562-1300; Fax: 801-233-0589.
“We view the Reverse Split as an important step in providing Kiwa added flexibility to raise additional capital and enter into transactions using its stock as scrip and to thereby increase shareholder value”, said Jimmy Ji Zhou, Chief Executive Officer of Kiwa.