Graphjet Technology Stock Soars 36% on Reverse Split Approval, Partnerships and Improved Financials

Graphjet Technology (GTI) surged 36.61% in after-hours trading to $0.13, up from a closing price of $0.092. The company's shareholders approved a 1-for-60 reverse split to meet NASDAQ's $1.00 minimum bid requirement. GTI's Q1 financial results show a 96% decrease in net loss to $577,023, with a 91.4% decline in net losses for the six-month period. The company operates as a pre-revenue firm with patented technology for manufacturing graphene and graphite from palm kernel shells.

Graphjet Technology Inc. (GTI) experienced a significant after-hours surge on Monday, with shares climbing 36.61% to $0.13, up from a closing price of $0.092. The company's shareholders approved a 1-for-60 reverse split to meet NASDAQ's $1.00 minimum bid requirement [1]. This move, approved at an extraordinary general meeting on August 7, aims to elevate the stock price and align with Nasdaq's listing standards.

The company's first-quarter financial results revealed substantial operational improvements. Net loss decreased by 96.0% to $577,023 for the three months ended on March 31, from $14.3 million in the first quarter of 2024. This dramatic improvement was driven primarily by a reduction in general administrative expenses, which fell from $14.1 million to $553,000 [1]. For the six-month period, net losses declined by 91.4% to $1.27 million from $14.7 million year-over-year [1].

Graphjet Technology operates as a pre-revenue company with patented technology for manufacturing graphene and graphite from palm kernel shells. The proprietary process achieves an 83% reduction in carbon footprint and 80% reduction in production costs compared to traditional methods [2]. The company's products target high-growth sectors including electric vehicle batteries, semiconductors, biomedical applications, and energy storage systems.

Graphjet's strategic moves include partnering with the Centre for Materials Engineering and Smart Manufacturing (MERCU) at Universiti Kebangsaan Malaysia to explore using graphite and graphene in additive manufacturing for advanced heat sink development under the Ministry of Higher Education's 2025 Consortium of Research Excellence program [1].

The share consolidation will take effect at 12:01 a.m. Eastern Time on August 25, and the new CUSIP number will be G30449139. Continental Stock Transfer & Trust Company will serve as exchange agent, with fractional shares rounded up to the nearest whole share [1].

The Southeast Asian thermal management market is expanding rapidly, driven by the region's role as a global hub for data centers and electric vehicles (EVs). Graphjet's use of AI-driven models such as the Self-Learning Entropic Population Annealing (SLEPA) algorithm and mode-resolved atomistic Green's function (AGF) techniques underscores its technical edge [2].

References:
[1] https://www.benzinga.com/markets/equities/25/08/47202366/graphjet-technology-stock-pops-36-in-after-hours-heres-whats-going-on
[2] https://www.ainvest.com/news/graphjet-strategic-moves-position-capture-ai-driven-thermal-management-market-2508/