NEW YORK, June 8, 2026, 07:03 EDT
- Dreamland shares listed on Nasdaq traded higher before the open. The stock finished Friday at 22 cents.
- Hong Kong event manager plans to carry out a 1-for-25 reverse stock split on June 15.
- The announcement comes after a previous run-in with Nasdaq’s minimum bid rule and a stretch of sharp swings in the share price.
Dreamland Limited shares jumped in U.S. pre-market trading Monday, bouncing off Friday’s drop. The Hong Kong event manager said it plans a 1-for-25 reverse stock split next week.
Class A shares traded at $0.36 in the premarket, about 62% above Friday’s close at $0.22, Google Finance data showed. The stock dropped 38.7% on Friday, hitting a new 52-week low of $0.20 on volume of roughly 113 million.
Dreamland is back under $1 again, which is the cutoff for Nasdaq’s minimum-bid rule. The company could use a reverse stock split to shrink its share count and push up the price, though that doesn’t change market value. But for smaller companies, splits like this can be key for staying listed.
Dreamland said in a June 5 filing that shareholders signed off on the split at an April 1 special meeting, with the board giving its approval on May 8. Nasdaq Operations still needs to give the go-ahead, but trading on a split-adjusted basis is set to start at the open on June 15.
The company said its issued share capital is set to drop to around 1.51 million ordinary shares from the previous 37.74 million after the split. Of that, Class A shares would make up about 1.50 million, with Class B shares down to roughly 8,000. It said no fractional shares will be issued and that any fractions will be rounded up.
Dreamland’s filing brings a new governance twist. The company also told regulators it plans to use Cayman Islands “home country practice” exemptions to skip a few Nasdaq corporate-governance rules. That includes annual meeting rules, some proxy solicitation steps and shareholder approval for some issuances.
Dreamland got back into compliance with Nasdaq’s $1 minimum bid level in May. The company said Nasdaq told it shares stayed at or above $1 for 10 sessions in a row between April 21 and May 4. That closed out a previous bid-price matter for Dreamland.
Pressure picked up again. Dreamland flagged in its April prospectus that the earlier 1-for-5 reverse split “may not sustain” compliance. Delisting would hit liquidity, market price and capital raising. The company also warned reverse splits can leave fewer shares in the market, which could cut liquidity and make the bid-ask spread wider — the difference between bids and offers.
Dreamland doesn’t move with the broad market, but Monday’s session follows a tough day for growth and tech stocks. The Nasdaq Composite ended Friday at 25,709.43, down 4.18%, Yahoo Finance data show.
Dreamland runs a small operation. The company, which calls itself a Hong Kong event-management provider, focuses on themed touring “experience events” using licensed characters from cartoons and live-action movies. In the year ended March 31, 2025, revenue jumped 124.1% to HK$45.8 million, but net profit dropped to HK$6.43 million from HK$7.09 million, according to its annual report.
Dreamland’s annual report points to competition in events, not stock splits. The report said big global event-management firms might come into Hong Kong. It named service range, prices, user experience, financial strength, deal history and industry links as the key things companies compete on.
Dreamland has been pushing to add a digital-services angle to its business. In May, the company said its Trendic International unit reached a non-binding memorandum of understanding with LinkFung Innovation for work on an AI-based image-library platform. Chief Executive Seto Wai Yue called it “a pivotal milestone” for Trendic’s push into AI.
But the risk is obvious. If the stock gives up its pre-market gains once trading starts, the split could end up looking like just another temporary fix for a company that’s already had to change its share count several times. Microcap names with low prices can swing sharply when there’s not much volume, and marking up the price with a split won’t solve issues like weak demand, dilution worries, or slowing events business.
