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First, you need to understand the difference between a stock split and a reverse stock split. A regular stock split divides shares into more units, while a reverse stock split, also known as stock consolidation, is when the existing large number of share units are combined into a smaller number.

Above is an example of a US-listed company or stock. You can see the S symbol at the bottom right, indicating that a share split corporate exercise has taken place.
Bon Natural Life Limited (BON) is a Nasdaq-listed biotechnology company headquartered in Xi''an, China. The company is involved in the research, development, manufacture, and sale of natural active ingredients used in health foods, personal care, cosmetics, and pharmaceuticals. Key products include health drink powders, bioactive food ingredients, and botanical fragrance compounds.
On 19 May 2025, BON executed a 1-for-25 reverse stock split. This means every 25 existing BON shares were combined into 1 new share. No fractional shares were issued; all fractions were rounded up. This move affected all shareholders uniformly without changing their percentage of equity ownership in the company.
Main purposes of this reverse split:
Capital structure changes:
| Before Split | After Split |
|---|---|
| 25 BON shares | 1 BON share |
| Low share price | Share price rises 25 times |
| Large number of shares | Reduced number of shares |
| Investment value unchanged | Investment value unchanged |
BON''s reverse stock split is a corporate action to maintain its Nasdaq listing status by raising the share price through share consolidation. It does not affect the value of your existing investment. If the number of units you purchased previously is less than the consolidation ratio, Mplus will liquidate and return the cash value to your trust account.
If your number of share units is less than the consolidation ratio (for example, fewer than 25 units for a 25:1 ratio), the units are insufficient to be converted. Mplus will liquidate them and return the cash value to your trust account within a few days to one month.
A stock split divides shares into more units at a lower price per unit. A reverse stock split does the opposite, combining several units into one unit at a higher price. Neither changes the overall value of your investment.
Not necessarily. Reverse stock splits are often carried out to meet the minimum listing price requirement on exchanges like Nasdaq. However, it can be a sign that the company''s share price has fallen too low, and investors should closely monitor the company''s fundamental performance.
You can contact the Mplus Global Central Dealer at +60322012012 to enquire about your share status and the process of returning the cash value to your trust account.
Understanding the mechanics of stock splits and reverse stock splits is important to avoid panic when changes occur in your portfolio. Keep building your investment knowledge to become a smarter investor.
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