Company: CENN
Filing Date: 2025-06-13
Form Type: PRE 14C
Source: 0001140361-25-022455
Chunk: 4

Company: Cenntro Inc.
Filing Date: 2025-06-13
Form: PRE 14C
Chunk 4
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 Reverse Stock Split shall become effective on the date that Nasdaq processes the Reserve Stock Split in the markets. We intend to file for the Reverse Stock Split and have it become effective as soon as possible after the twentieth (20 th ) day following the date on which this Information Statement is mailed to the Stockholders.

#### Principal Reasons for the Reverse Stock Split
The principal reason for authorizing the Reverse Stock Split is for the Company to maintain its listing on the Nasdaq Capital Market. On April 25, 2025, the Company was notified that it is not in compliance with the requirement to maintain a minimum closing bid price of $1.00 per share (the “Bid Price Rule”), as set forth in Nasdaq Listing Rule 5550(a)(2), because the closing bid price of the Company’s Common Stock was below $1.00 per share for thirty (30) consecutive business days. In order to regain and maintain compliance with the Nasdaq Bid Price Rule, the Company has decided to authorize the Reverse Stock Split of the issued and outstanding shares of Common Stock in order to (i) reduce the number of our issued and outstanding shares of Common Stock thereby increasing the number of shares of Common Stock available for issuance and (ii) increase the trading price of the Common Stock.

By effecting the Reverse Stock Split, there is a potential to improve the marketability and liquidity of our Common Stock as it could encourage interest and trading in our Common Stock, and improve the perception of our Common Stock as an investment security as lower-priced stocks have a perception in the investment community as being risky and speculative, which may negatively impact not only the price of our Common Stock, but also our market liquidity.

**Potential Disadvantages Associated with the Reverse Stock Split**

Reduced Market Capitalization. Even if a reverse stock split is effected, some or all of the expected benefits discussed above may not be realized or maintained. As noted above, the principal reason of the Reverse Stock Split is to increase the trading price of our Common Stock to satisfy the Bid Price Rule. However, the effect of the Reverse Stock Split on the market price of our Common Stock cannot be predicted with any certainty, and it is not guaranteed that the Reverse Stock Split will accomplish this objective for any meaningful period of time, or at all. While we expect that the reduction in the number of outstanding shares of Common Stock will proportionally increase the market price of our Common Stock, there is no guarantee that the Reverse Stock Split will increase the market price of our Common Stock by a multiple of