SHANGHAI, Nov. 4, 2024
/PRNewswire/ -- XChange TEC.INC (NASDAQ: XHG) (the "Company") today
announced that it plans to change the ratio of the American
depositary shares ("ADSs") representing its Class A ordinary shares
from one (1) ADS representing six hundred thousand (600,000) Class
A ordinary share to one (1) ADS representing twelve million
(12,000,000) Class A ordinary shares.
For the ADS holders, the change in the ADS ratio will have the
same effect as a one-for-twenty reverse ADS split. There will be no
change to the Company's Class A ordinary shares. The effect of the
ratio change on the ADS trading price on The Nasdaq Capital Market
is expected to take place at the open of trading on November 8, 2024 (U.S. Eastern Time) (the
"Effective Date"). Holder of ADSs will be required on a mandatory
basis to surrender their old ADSs to the Company's depositary, The
Bank of New York Mellon (the "Depositary"), in exchange for every
twenty (20) then-held (old) ADSs to receive one (1) new ADS. The
ADSs will continue to be traded on The Nasdaq Capital Market under
the symbol "XHG."
No fractional new ADSs will be issued in connection with the
change in the ADS ratio. Instead, fractional entitlements to new
ADSs will be aggregated and sold by the Depositary and the net cash
proceeds from the sale of the fractional ADS entitlements (after
deduction of fees, taxes and expenses) will be distributed to the
applicable ADS holders by the Depositary.
As a result of the change in the ADS ratio, the ADS price is
expected to increase proportionally, although the Company can give
no assurance that the ADS price after the change in the ADS ratio
will be equal to or greater than twenty times the ADS price before
the change.
View original
content:https://www.prnewswire.com/news-releases/xchange-tecinc-announces-plan-to-implement-ads-ratio-change-302295207.html
SOURCE XChange TEC.INC