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In July, CL Workshop Group sold 12.3 million shares at $0.20 each. Nasdaq has given the company until November 2 to get those shares trading above $1.00, or lose its listing.
The gap between those two prices defines what the placement means for anyone already holding the stock. Each unit, sold under a purchase agreement dated July 14, bundled one ADS — a listed certificate representing eight ordinary shares — with a warrant to buy three more ADSs at $0.25. Those buyers can now sell publicly: a prospectus filed with the SEC on August 25 registered the shares for resale on their behalf. The company said it receives none of those proceeds.
The warrants compound the picture. If all 12.3 million are exercised, the company would issue up to 36.9 million additional ADSs at $0.25 each. Every new share makes existing ones a smaller fraction of the same company — and the exercise price, like the placement price, sits well below the $1.00 minimum Nasdaq requires.
Nasdaq notified the company in May that its ADSs had fallen below $1.00 and stayed there, putting it out of compliance. November 2 is the first deadline. If the company misses it, a further grace period is available — but only by committing to push the price above the minimum, most likely through a reverse split, where existing shares are consolidated into fewer, higher-priced ones.
CEO Liying Wang effectively controls all decisions. Through her holding vehicle she owns all of the company's Class B ordinary shares, which carry 50 votes each against one for the Class A shares listed publicly. That gives her roughly 97% of total voting power, the prospectus states.
Shares closed 26.26% higher at $0.8472 on August 27, on dollar volume of about $3.7 million.
The placement buyers secured a position that works whether the stock reaches $1.00 or not. For existing holders, the listing depends on it.