TREASURE GLOBAL INC Material Event - What Happened

Hey everyone, let's break down what's been going on with TREASURE GLOBAL INC. Sometimes big news comes out that can affect a company, and it's easy to get lost in all the fancy business talk. My goal here is to cut through the noise and tell you what really happened, why it matters, and what you should keep an eye on, all in plain English.

Think of this as your quick, no-nonsense guide to understanding the latest big development.

---

1. What happened? (The actual event, in plain English)

• TREASURE GLOBAL INC just completed a "reverse stock split." Imagine you own 20 small pieces of a pie. The company decided to combine those 20 small pieces into just 1 bigger piece. So, for every 20 shares of stock you owned before, you now own 1 share. The total value of your investment should remain the same right after the split, but the price per share will be 20 times higher. For example, if you had 20 shares worth $0.50 each (total $10), you now have 1 share worth $10.

2. When did it happen?

• The company's stockholders approved the idea of a reverse split on November 25, 2025. The board of directors then decided on the specific 1-for-20 ratio. The official paperwork was filed on December 4, 2025, and the reverse stock split became effective at 12:01 a.m. Eastern Time on December 5, 2025. The company's common stock began trading on a split-adjusted basis (meaning with the new, higher price per share) when the Nasdaq Stock Market opened on December 5, 2025.

3. Why did it happen? (The backstory and context)

• The main reason for this reverse stock split is to comply with Nasdaq's listing requirements. Major stock exchanges like Nasdaq have rules, and one of them is often a "Bid Price Rule," which means a company's stock price needs to stay above a certain minimum (usually $1.00 per share) to remain listed. TREASURE GLOBAL INC's stock price was likely too low, so by reducing the total number of shares and proportionally increasing the price per share, they aimed to get their stock price back above that minimum threshold. This helps them avoid being delisted from Nasdaq.

4. Why does this matter? (The "so what?" for everyone)

• This matters because staying listed on a major exchange like Nasdaq is really important for a company. It helps with credibility, makes it easier for investors to buy and sell the stock, and can affect the company's ability to raise money in the future. If a company gets delisted, it can signal financial trouble and make it much harder for investors to trade its shares. For current shareholders, while the total value of their holdings should be the same immediately after the split, a reverse split can sometimes be seen by the market as a sign of weakness, and the stock price might not hold its new, higher value over time.

5. Who is affected? (Employees, customers, investors, etc.)

• Investors/Shareholders: This group is the most directly affected. If you owned TREASURE GLOBAL INC stock, your total number of shares has decreased by a factor of 20, and the price per share has increased by a factor of 20. Your percentage ownership of the company remains the same immediately after the split.
• Employees with stock options/RSUs: The number of shares they are entitled to and the exercise price for their options will be adjusted proportionally. This means the total value of their equity awards should remain the same.
• The Company: This move helps TREASURE GLOBAL INC maintain its listing on Nasdaq, which is crucial for its reputation and access to capital.
• Competitors: Rival companies will be watching to see if TREASURE GLOBAL INC successfully maintains its Nasdaq listing and if this move helps stabilize its stock price.

6. What happens next? (Immediate and future implications)

• The stock is now trading on a split-adjusted basis. The company will be closely watched to see if the higher stock price can be maintained and if they successfully meet and stay in compliance with Nasdaq's listing rules. The goal is to avoid delisting and continue to operate as a publicly traded company on a major exchange. We'll need to see how the market reacts to the new share price in the coming weeks and months.

7. What should investors/traders know? (Practical takeaways)

For investors and traders, here are the key things to remember about this reverse stock split:

• Your Share Count & Price: If you own TREASURE GLOBAL INC stock, your total number of shares has decreased by a factor of 20, and the price per share has increased by a factor of 20.
• The Main Reason: This was done primarily to boost the stock price to meet Nasdaq's minimum bid price requirement and avoid delisting.
• Market Perception: Reverse splits can sometimes be viewed negatively by the market, as they often indicate a company's stock price has fallen significantly. Keep an eye on how the market reacts to the new, higher share price.
• No Immediate Change in Ownership: Your percentage ownership of the company remains the same immediately after the split.
• Watch for Follow-up: Keep an eye out for any further announcements from TREASURE GLOBAL INC – like earnings calls or press releases – where they might discuss the impact of the split or their ongoing compliance with Nasdaq.
• Do Your Own Homework: This report is a summary. Always do your own research and consider how this event fits into your overall investment strategy for TREASURE GLOBAL INC.

---

Hopefully, this helps you understand the big picture without getting bogged down in all the corporate speak!