Shares of Tianci International (CIIT) slid another 7.2% to $0.45 on July 13, extending a punishing decline that has erased nearly 70% of the stock's value since mid-June — all without a single piece of new company news. The damage traces back to a cascading series of capital-structure moves that have left shareholders holding a rapidly shrinking slice of a tiny freight-forwarding operation.
A $4.9 Million Offering Flooded a Thin Market With New Stock
On June 17, Tianci closed a public offering of 4,055,000 units and 2,000,000 pre-funded units at roughly $0.81 each, raising gross proceeds of approximately $4.9 million before fees.
Net proceeds were estimated at about $4.2 million. Crucially, each unit also came with a warrant — essentially a coupon letting holders buy another share at $0.81 — meaning the total dilution could roughly double once those warrants are exercised. For a company that traded at $1.48 the day before pricing, the issuance increased outstanding shares by at least 20% immediately, with warrants threatening further supply.
The Reverse Split Fixed a Listing Problem, Not the Business
Tianci executed a 1-for-7 reverse stock split effective March 20, 2026 , intended to boost its bid price above Nasdaq's $1.00 minimum for continued listing.
That compressed 25.3 million shares into roughly 3.6 million — but the board simultaneously held authority to issue vastly more. Shareholders had already approved expanding authorized common stock to 2 billion shares, far above the roughly 24.5 million then outstanding. The math is stark: management has a nearly unlimited runway to print new equity.
Insiders Hold Extra Levers That Amplify the Risk
Shareholders also approved the sale of 30,000 Series C Preferred shares to CEO-owned RQS Capital for just $30,000, each convertible into 100 common shares — a potential conversion into 3 million common shares.
In April, majority holders approved additional reverse-split authority up to 1-for-250 and authorization to issue securities for up to $7 million more.
Why the Slide May Not Be Over
At $0.45, CIIT is already trading 44% below its June offering price. The company's own S-1 flagged the deal as "highly dilutive," noting ongoing losses and thin logistics margins. With warrants exercisable at $0.81 now deeply underwater, any brief rally back toward that level would unleash fresh selling pressure. Until Tianci demonstrates actual revenue growth rather than financial engineering, the stock looks less like an investment and more like a cautionary case study in micro-cap dilution risk.