Key Highlights

• HKIT shares fell 18.35% pre-market to $0.18.

• The company announced a 1-for-25 reverse split effective July 6, 2026.

• This marks the third reverse split action of 2026, following 1-for-50 and 1-for-3 splits earlier in the year.

• Total authorized share capital will remain unchanged at $316,000.

• Outstanding Class A shares are expected to fall from approximately 20 million to roughly 800,000.

Third Reverse Split of 2026 Announced

Hitek Global Inc. (NASDAQ:HKIT) shares declined in pre-market trading after the information technology consulting company announced a 1-for-25 reverse split of its Class A ordinary shares, effective July 6, 2026. The Xiamen, China-based company provides IT consulting and solutions services, including tax control systems and hardware and software sales, to small, medium, and large businesses in China.

The reverse split follows shareholder authorization granted at the company's 2025 Annual General Meeting, permitting cumulative reverse splits at ratios between 1-for-40 and 1-for-5,000 within a two-year window. The company previously effected a 1-for-50 split in April 2026 and a 1-for-3 split in May 2026.

Share Count and Par Value Adjustments

Following the split, every three issued and unissued Class A shares will combine into one share, with the par value rising from $0.015 to $0.375 per share. No fractional shares will be issued, with any fractional entitlement rounded up at the participant level. Total authorized share capital will remain unchanged at $316,000, reclassified across Class A, Class B, and preference shares.

Prior to the split, the company had approximately 19,996,492 Class A shares and 8,192,000 Class B shares outstanding. Following the split, Class A shares outstanding are expected to fall to approximately 799,860, with Class B shares unchanged. Shares will continue trading under the same ticker symbol with a new CUSIP number.

Conclusion

Hitek Global's pre-market decline reflects continued investor caution as the company undertakes its third reverse split of 2026, a pattern often associated with efforts to maintain minimum share price requirements for continued exchange listing. Investors will likely watch for confirmation of trading stability once the split becomes effective July 6, 2026.

 

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making financial decisions.