8-K: Cheetah Net Executes 1-for-200 Reverse Stock Split

Cheetah Net Supply Chain Service Inc. has completed a 1-for-200 reverse stock split of its common stock effective April 20, 2026.

Summary

• The company implemented a 1-for-200 reverse stock split of its Class A and Class B common stock.
• The reverse stock split became effective at 8:00 a.m. ET on April 20, 2026.
• Issued and outstanding Class A Common Stock was reduced from 391,177,712 shares to 1,955,889 shares.
• Issued and outstanding Class B Common Stock was reduced from 690,875 shares to 3,455 shares.
• Fractional shares resulting from the split were rounded up to the nearest whole share.
• The company's 2024 Stock Incentive Plan was adjusted proportionally to reflect the split ratio.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral-to-negative event, as reverse splits are typically a reactive measure to address low share prices rather than a proactive growth strategy.

Positives

• The reverse stock split may help the company maintain compliance with Nasdaq listing requirements regarding minimum bid price.

Negatives

• Reverse stock splits are often perceived by the market as a sign of previous significant share price depreciation.
• The reduction in share count does not change the underlying fundamental value of the company.

Risks

• Potential for continued downward pressure on share price following the split.
• Market volatility associated with the transition to a split-adjusted trading basis.

Future Outlook

The company expects its Class A Common Stock to begin trading on a split-adjusted basis on April 29, 2026, under a new CUSIP number.

Management Comments

• The Board of Directors determined the 1-for-200 ratio in its sole discretion to implement the reverse stock split.

Industry Context

StockSavvy.ai notes that reverse stock splits are a common defensive mechanism for micro-cap companies listed on major exchanges to avoid delisting due to sub-$1.00 share price requirements.

Comparison to Industry Standards

• The 1-for-200 ratio is aggressive compared to standard 1-for-5 or 1-for-10 splits, indicating significant prior share dilution or price erosion.
• The use of written consent by majority shareholders (79.16% voting power) to bypass a special meeting is a standard governance practice for controlled companies.

Corporate Governance

Stakeholder Impact

• Shareholders will see a reduction in the number of shares held, with a proportional increase in the price per share.
• The voting power of existing shareholders remains proportionally unchanged.

Next Steps

• Commencement of trading on a split-adjusted basis on April 29, 2026.
• Assignment of new CUSIP number 16307X301.

Key Dates

Recommendation

Investors should exercise caution; while the split prevents immediate delisting, it does not address the underlying financial performance issues that led to the low share price.

Keywords

reverse stock split, Cheetah Net, CTNT, corporate action, Nasdaq, capital structure