Chaince Digital seeks to increase authorized shares to 20 billion

Chaince Digital Holdings, a crypto treasury firm, is holding a shareholder meeting to vote on significant changes to its capital structure. The primary proposals include increasing the company’s authorized ordinary shares from 1 billion to 20 billion and granting the board broad authority to execute reverse stock splits.

The reverse split authority would allow the board to conduct one or more splits between 2-for-1 and 200-for-1 ratios over a three-year period, with a cumulative cap of 4,000-for-1. The company stated these measures are intended to provide flexibility for market responses, Nasdaq listing requirements, and future financing activities.

These proposals follow the company's recent establishment of an at-the-market (ATM) program with H. C. Wainwright, which allows for up to $300 million in stock sales. While the increase in authorized shares provides a much larger ceiling for potential future issuances, the company noted that actual issuance remains subject to subsequent board action and is not immediate.