CONCORD MEDICAL ANNOUNCES PLAN TO IMPLEMENT ADS RATIO CHANGE
Concord Medical (NYSE: CCM) announced plans to change the ADS Ratio of its American depositary shares (ADS) from 1 ADS representing 3 Class A ordinary shares to 1 ADS representing 30 Class A ordinary shares. This change is expected to be effective on July 30, 2024. The ADS holders must surrender and exchange every 10 existing ADSs for 1 new ADS. JPMorgan Chase Bank will manage the exchange process. No fractional new ADSs will be issued; fractional entitlements will be sold, and proceeds will be distributed to ADS holders. This ratio change is anticipated to proportionally increase the ADS trading price, but cannot guarantee it will be ten times the previous trading price.
- None.
- ADS holders must surrender and exchange every 10 existing ADSs for 1 new ADS, which could be inconvenient.
- No assurance that the ADS trading price post-ratio change will be ten times the current price.
For the ADS holders of Concord Medical, the change in the ADS Ratio will have the same effect as a one-for-ten reverse ADS split. Each ADS holder at the open of business on the date when the change in ADS Ratio is effective will be required to surrender and exchange every ten (10) existing ADSs then held for one (1) new ADS. JPMorgan Chase Bank, N.A., as the depositary bank for the ADS program of Concord Medical, will arrange for the exchange of the current ADSs for the new ones.
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 bank, 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 bank. The change in the ADS Ratio will have no impact on the underlying Class A ordinary shares of Concord Medical, and no Class A ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio.
As a result of the change in the ADS Ratio, the ADS trading price of Concord Medical is expected to increase proportionally, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than ten times the ADS trading price before the change.
About Concord Medical
Concord Medical Services Holdings Limited is a healthcare provider featuring a full cycle of premium oncology services including cancer diagnosis, treatment, education and prevention. The Company focuses on providing multidisciplinary cancer care in all aspects of oncology healthcare services in its cancer hospitals and equipping them with technologically advanced equipment such as the state-of-the-art proton therapy system. The Company is striving to improve the quality and accessibility of cancer care through its network of self-owned cancer hospitals and clinics as well as partnered hospitals across
About Concord Healthcare
Concord Healthcare is an oncology healthcare provider in
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. Forward-looking statements are inherently subject to uncertainties and contingencies beyond the Company's control and based upon premises with respect to future business decisions, which are subject to change. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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SOURCE Concord Medical Services Holdings Limited
FAQ
What is the new ADS Ratio for Concord Medical (CCM)?
When will the new ADS Ratio for Concord Medical (CCM) take effect?
What will happen to existing ADSs of Concord Medical (CCM) holders after the ratio change?
Will the ADS trading price of Concord Medical (CCM) increase after the ADS Ratio change?