All In FutureTech Alliance Inc. (NASDAQ:AIFA) shares fell roughly 9% in premarket trading on Friday after the company confirmed plans to implement a reverse stock split aimed at restoring compliance with Nasdaq listing requirements.
The board approved a 1-for-6 reverse split following authorization from shareholders at a Special Meeting held on June 1, 2026.
Reverse Split Scheduled to Take Effect in June
According to the company, the reverse stock split is expected to become effective at 5:01 p.m. Eastern Time on June 11, 2026.
Trading on a split-adjusted basis is set to begin when markets open on June 12, 2026.
The corporate action will consolidate the company’s outstanding shares while leaving shareholders’ proportional ownership interests largely unchanged, aside from rounding adjustments.
Outstanding Share Count to Be Reduced
Upon completion of the reverse split, the number of issued and outstanding shares is expected to decline from approximately 38.3 million to around 6.4 million.
The final figure may vary slightly due to the treatment of fractional shares.
The company stated that no fractional shares will be issued, with any resulting fractions rounded up to the nearest whole share.
Move Intended to Address Nasdaq Compliance
Management said the primary objective of the reverse stock split is to regain compliance with Nasdaq’s minimum bid price requirement.
The company received a notice from the exchange on May 11, 2026, indicating that it had fallen below the threshold necessary to maintain its Nasdaq listing.
By increasing the per-share trading price through the reverse split, All In FutureTech Alliance aims to satisfy the exchange’s continued listing standards.
Shareholders Strongly Backed the Proposal
At the June 1 Special Meeting, shareholders overwhelmingly supported an amendment to the company’s certificate of incorporation, with approximately 99% of votes cast in favor.
The amendment granted the board authority to implement a reverse stock split at a ratio ranging from 1-for-2 to 1-for-25.
Following its review, the board elected to proceed with a 1-for-6 ratio.
Management Sees Greater Strategic Flexibility
Chairman and Chief Executive Officer James Li said the shareholder approval provides the company with additional flexibility as it works to address Nasdaq’s compliance concerns while continuing to execute broader corporate initiatives.
The company added that it will continue exploring other actions designed to strengthen its capital markets profile, support strategic growth plans and preserve its listing status.
Further details regarding the reverse stock split were disclosed in the definitive proxy statement filed with the U.S. Securities and Exchange Commission on May 21, 2026.