Nasdaq-listed Digital Foreign money X Know-how Inc. is asking shareholders to approve a 160-for-1 reverse inventory cut up, also referred to as a share consolidation, on September 3. It could be the corporate’s second consolidation of 2026 after a 12-for-1 motion took impact on January 22.
Digital Foreign money X lately shifted from electric-vehicle manufacturing into the digital asset sector. In its newest annual report, the corporate mentioned its treasury held 157.45 million EDGEAI tokens. It valued them at about $402 million as of December 31, 2025. It later locked all of these tokens in a 12-month staking settlement. The settlement carried a floating annualized yield of three.5% to eight%.
For a holder whose stability is divisible by 160, each 160 Class A or Class B shares would turn out to be one share. A holder of 16,000 shares, for instance, would obtain 100. The submitting says the corporate would spherical fractional outcomes as much as the closest complete share, so smaller or nondivisible positions wouldn’t comply with that arithmetic precisely. The consolidation would cowl each issued and unissued shares. It could take impact on a date confirmed by Nasdaq or one on which the change raises no objection.
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A reverse inventory cut up, then an authorization reset
The primary decision would cut back approved shares from 3 billion, every with a par worth of $0.0001, to 18.75 million, every with a $0.016 par worth. A second decision would instantly improve the authorization again to three billion shares on the increased par worth. A 3rd would reorganize the approved share capital again to $0.0001 per share. Shareholders had authorized the three billion-share authorization on Could 13, in line with a Could submitting.
Licensed shares are capability, fairly than inventory already issued. The resolutions wouldn’t themselves problem shares or show speedy dilution, however they would depart the corporate capable of problem much more shares after the consolidation than the 18.75 million-share ceiling created by step one alone.
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Share base and voting timeline
The disclosed issued-share figures come from two earlier dates and set up solely a flooring. Digital Foreign money X’s annual report listed 19,823,627 Class A shares and 1,334 Class B shares excellent as of April 20. A July 7 submitting then mentioned the corporate issued 331,753,557 models, every together with one Class A share and warrants, at a July 3 private-placement closing. Collectively, these disclosures set up no less than 351,577,184 Class A shares plus 1,334 Class B shares earlier than any later warrant train or different issuance.
Class A shares carry one vote every on general-meeting issues, whereas Class B shares carry 20. On the April counts, the Class B class represented 26,680 votes towards greater than 19.8 million Class A votes. The July issuance added Class A shares, however the supplies don’t set up present holder-by-holder management for the September vote.
The corporate mentioned it supposed January’s consolidation to assist regain Nasdaq minimal bid-price compliance. Against this, the August assembly discover doesn’t determine a compliance, financing, or providing rationale for the proposed 160-for-1 reverse inventory cut up and capital reorganization. Intervening issuance additionally modified the share base, so the 2 ratios don’t describe one steady holder-level discount.
The Zoom-only assembly is scheduled for 10:00 a.m. Hong Kong time on September 3. Web and cellphone voting closes at 11:59 p.m. Jap time on September 2, whereas proxy varieties have a separate deadline no later than 48 hours earlier than the assembly.
