When a company such as Origin Agritech conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the SEED split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Origin Agritech shares, starting with a $10,000 purchase of SEED, presented on a split-history-adjusted basis factoring in the complete SEED split history.

About Origin Agritech

Origin Agritech is a holding company. Through its subsidiaries, Co. is focused on agricultural biotechnology and an agricultural oriented e-commerce platform, operating in the People's Republic of China (China). Co.'s seed research and development activities focus on crop seed breeding and genetic improvement. The e-commerce activities focus on delivering agricultural products to farmers in China via online and mobile ordering and tracking the source of the agricultural products via blockchain technologies. According to our SEED split history records, Origin Agritech has had 1 split.

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