Why Did WiMi Hologram Cloud Plunge 10% After Reverse Split Announcement?

On April 4, 2025, wimi hologram cloud experienced a significant drop of 10% in pre-market trading, reflecting a notable decline in investor sentiment.

WiMi Hologram Cloud Inc., a leading ar services provider in China, announced a 1-for-20 reverse share split, effective from April 14, 2025. This corporate action aims to increase the per-share trading price of its Class B ordinary shares, enhance investor attractiveness, and comply with Nasdaq's minimum bid price requirement. The reverse split will consolidate every 20 existing ordinary shares into one new share, reducing the total number of outstanding shares by a factor of 20. Shareholders' proportional equity interests will remain unchanged, with fractional shares liquidated and cash payments issued in lieu thereof.

The company's extensive holographic AR content library, comprising 4,654 AR holographic contents, and its advanced image processing capabilities, which are 80% faster than the industry average, position it as a leader in the holographic AR solutions market in China. The reverse share split is expected to bolster the company's market position and attract a broader range of investors.