J-Star Shareholders Approve 1-for-10 Share Consolidation Plan

J-Star Holding Co., Ltd. shareholders approved a 1-for-10 consolidation that would reduce the company’s ordinary-share count as the Nasdaq-listed issuer reorganizes its capital for U.S. expansion.

Shareholders approved all seven proposals on Oct. 29. The consolidation received 1,720,941 Class A votes in favor, or 99.58%, and 12,194,380 Class B votes in favor, or 100%. Class A holders recorded 4,672 votes against and 2,523 abstentions.

The approved restructuring calls for authorized capital to increase from $300 million to $2.5 billion through the addition of 880 million authorized Class A shares. The next stage would lower the par value of each issued and outstanding Class A and Class B share from $2.50 to $0.001, subject to requirements under the Cayman Islands Companies Act.

That reduction would cancel $2.499 in paid-up capital per issued share and transfer the resulting credit to a distributable reserve. The resulting reserve could cover accumulated losses or other uses allowed by law.

After the par-value reduction, the plan would convert every 10 issued or unissued shares of either class into one share, with par value changing from $0.001 to $0.01. Authorized capital would then total $1 million, divided into 94 million Class A shares and 6 million Class B shares. Fractional entitlements would be rounded up.

At a separate Class A meeting, holders also approved a proposal to increase Class B voting rights from 10 to 50 votes per share. That change requires separate Class B consent. The amended charter also requires separate consent from each share class.

J-Star previously completed a 1-for-5 consolidation on July 10. The company said that change was intended to help it regain compliance with Nasdaq’s minimum bid-price rule. J-Star has tied the new measures to its U.S. growth strategy, including carbon-fiber frame manufacturing and commercialization for unmanned aerial vehicles, and has outlined Houston facility plans.

Chairman and CEO Jing-Bin Chiang said the measures are intended to strengthen J-Star’s financial base as it advances its priorities. The company has not announced an effective date for the consolidation and is awaiting final Nasdaq approval.