Yoshiharu Global Co. (NASDAQ: YOSH) experienced a substantial surge in its market valuation during the latest trading session, exhibiting a remarkable 22.82% increase to culminate at $4.79. This surge was instigated by a strategic reverse stock split.
On Tuesday, Yoshiharu (YOSH) executed a reverse stock split on its outstanding shares of Class A and Class B common stock at a ratio of 1-for-10. The post-split trading of Yoshiharu’s Class A common stock commenced on November 28, 2023, under the existing trading symbol “YOSH.”
This move was a proactive measure to comply with the Minimum Bid Price Requirement of $1.00 per share, crucial for maintaining a continuous listing on The Nasdaq Capital Market, among other advantageous outcomes.
The division led to a significant decrease in the quantity of Yoshiharu’s Class A common stock, dropping from 11,940,000 to 1,194,000 shares. Likewise, a corresponding decrease occurred in the Class B common stock, diminishing from 1,000,000 to 100,000 shares.
In a recent development, Yoshiharu entered into an asset purchase agreement with a restaurant operator (“Seller”) to acquire specific restaurant assets held by Jjanga LLC, HJH LLC, and Ramen Aku LLC for a total of $3.6 million. The anticipated annual revenues from these three restaurants in 2023 are expected to surpass $6.0 million.
The completion of this transaction is anticipated by the close of 2023. Looking ahead, with the prospect of four new restaurants opening by the first quarter of 2024, YOSH foresees a substantial top-line growth exceeding 80% in annual revenues.
This growth will stem from both acquisitions and the establishment of new ventures, promising a considerable enhancement in financial health and stability in 2024 compared to 2023. The acquisition represents a pivotal element in the company’s overarching long-term strategy, aligning seamlessly with its short-term goal of operating 13 restaurants by the conclusion of 2023.