DEFA14C: Longwen Group Corp. Announces Name Change, Director Re-election, Reverse Stock Split Authorization, and Auditor Ratification via Written Consent

Longwen Group Corp. informs stockholders of actions taken by written consent, including a name change to Wenyuan Group Corp., director re-election, authorization for a reverse stock split, and ratification of the auditor.

Summary

• Longwen Group Corp. is providing an information statement to its stockholders regarding actions approved by written consent on April 5, 2024.
• The actions include changing the company's name to Wenyuan Group Corp., re-electing current directors, granting the board authority to enact a reverse stock split (between 5:1 and 10:1) before December 31, 2024, and ratifying the appointment of Simon & Edward, LLP as the independent auditor for the fiscal year ending December 31, 2024.
• The actions were approved by the holder of 65.7% of the company's outstanding voting securities.
• The changes are expected to take effect approximately 20 calendar days after the distribution of the information statement.
• The Board of Directors retains the discretion to abandon any or all of the Actions for any reason up until the effective date of each Action.

Sentiment

Score: 7

Explanation: The document outlines standard corporate governance procedures and strategic actions. The sentiment is neutral to slightly positive as the company is taking steps to streamline operations and potentially improve its stock price through a reverse split.

Positives

• The actions were approved by a majority of voting power, streamlining the decision-making process.
• Re-election of current directors provides continuity in leadership.
• Ratification of the auditor ensures compliance and financial oversight.

Risks

• The Board of Directors retains the discretion to abandon any or all of the Actions for any reason up until the effective date of each Action.

Future Outlook

The company expects the actions to take effect approximately 20 calendar days after the distribution of the information statement, but the board retains discretion to abandon any action.

Management Comments

• The management of Company chose to obtain the written consent of a majority of the Company's voting power to approve the Actions described in the Information Statement, as permitted under Section 78.320 of the Nevada Revised Statutes (the NRS).
• Xizhen Ye, Chief Executive Officer, signed the notice.

Industry Context

Corporate actions such as name changes, director re-elections, reverse stock splits, and auditor ratifications are common in the corporate world. The use of written consent in lieu of a formal meeting is a mechanism to expedite these actions and reduce costs.

Stakeholder Impact

• Shareholders will be impacted by the name change and potential reverse stock split.
• The reverse stock split could affect the stock price and trading volume.

Next Steps

• The company will distribute the Information Statement to stockholders.
• The company will wait 20 calendar days for the actions to take effect.
• The Board of Directors may enact a reverse stock split before December 31, 2024.

Key Dates

Keywords

Wenyuan Group Corp., reverse stock split, director re-election, name change, Longwen Group Corp., auditor ratification, written consent