Dunxin Financial Holdings Limited Announces Planned ADS Ratio Change
Dunxin Financial Holdings (OTC Pink: DXFFY) announced plans to change its American depositary shares (ADSs) ratio from 1:480 to 1:60,000 Class A ordinary shares, effective December 4, 2024. This change will function similarly to a 1:125 reverse split for ADS holders.
The company's Class A ordinary shares will remain unchanged. ADS holders must surrender their securities for cancellation and exchange. No fractional ADSs will be issued; instead, fractional entitlements will be sold, with net proceeds distributed to affected holders. Trading will continue under the symbol 'DXFFY' on the OTC Pink market.
Dunxin Financial Holdings (OTC Pink: DXFFY) ha annunciato piani per modificare il rapporto delle sue azioni di deposito americane (ADS) da 1:480 a 1:60.000 azioni ordinarie di Classe A, a partire dal 4 dicembre 2024. Questa modifica funzionerà in modo simile a uno split inverso 1:125 per i possessori di ADS.
Le azioni ordinarie di Classe A dell'azienda rimarranno invariate. I possessori di ADS devono consegnare i loro titoli per l'annullamento e lo scambio. Non saranno emessi ADS frazionari; invece, i diritti frazionari saranno venduti, con i proventi netti distribuiti ai detentori interessati. Le contrattazioni continueranno sotto il simbolo 'DXFFY' nel mercato OTC Pink.
Dunxin Financial Holdings (OTC Pink: DXFFY) anunció planes para cambiar la proporción de sus acciones de depósito estadounidenses (ADS) de 1:480 a 1:60,000 acciones ordinarias de Clase A, con efecto a partir del 4 de diciembre de 2024. Este cambio funcionará de manera similar a un split inverso de 1:125 para los titulares de ADS.
Las acciones ordinarias de Clase A de la empresa permanecerán sin cambios. Los titulares de ADS deben entregar sus valores para cancelación e intercambio. No se emitirán ADS fraccionarios; en su lugar, los derechos fraccionarios serán vendidos, y los ingresos netos se distribuirán a los titulares afectados. Las operaciones continuarán bajo el símbolo 'DXFFY' en el mercado OTC Pink.
Dunxin Financial Holdings (OTC Pink: DXFFY)는 2024년 12월 4일부터 자사의 미국 예탁 증권(ADS) 비율을 1:480에서 1:60,000 클래스 A 보통주로 변경할 계획을 발표했습니다. 이 변경은 ADS 보유자에게 1:125의 역분할과 유사하게 작용할 것입니다.
회사의 클래스 A 보통주는 변경되지 않습니다. ADS 보유자는 증권을 취소 및 교환을 위해 제출해야 합니다. 분수 ADS는 발행되지 않으며, 대신 분수 권리는 판매되고, 순수익은 영향을 받는 보유자에게 배분됩니다. 거래는 OTC Pink 시장에서 'DXFFY' 기호로 계속 진행됩니다.
Dunxin Financial Holdings (OTC Pink: DXFFY) a annoncé des plans pour modifier son ratio d'actions de dépôt américaines (ADS) de 1:480 à 1:60 000 actions ordinaires de classe A, à compter du 4 décembre 2024. Ce changement fonctionnera de manière similaire à un reverse split de 1:125 pour les détenteurs d'ADS.
Les actions ordinaires de classe A de l'entreprise resteront inchangées. Les détenteurs d'ADS doivent remettre leurs titres pour annulation et échange. Aucun ADS fractionnaire ne sera émis; à la place, les droits fractionnaires seront vendus, et les produits nets seront distribués aux détenteurs concernés. La négociation se poursuivra sous le symbole 'DXFFY' sur le marché OTC Pink.
Dunxin Financial Holdings (OTC Pink: DXFFY) hat Pläne angekündigt, das Verhältnis seiner amerikanischen Depotanteile (ADS) von 1:480 auf 1:60.000 gewöhnliche Aktien der Klasse A zu ändern, mit Wirkung zum 4. Dezember 2024. Diese Änderung wird ähnlich wie ein 1:125 Reverse-Split für die ADS-Inhaber funktionieren.
Die gewöhnlichen Aktien der Klasse A des Unternehmens bleiben unverändert. ADS-Inhaber müssen ihre Wertpapiere zur Stornierung und zum Austausch abgeben. Es werden keine fractional ADS ausgegeben; stattdessen werden fractional Ansprüche verkauft, und die Nettoerlöse werden an die betroffenen Inhaber verteilt. Der Handel wird weiterhin unter dem Symbol 'DXFFY' am OTC Pink Markt durchgeführt.
- None.
- Implementation of a significant ADS ratio change (1:125 equivalent reverse split) potentially indicating share price concerns
- Trading on OTC Pink market instead of major exchanges suggests reduced market visibility and liquidity
Insights
The announced ADS ratio change from 1:480 to 1:60,000 represents a significant technical adjustment that effectively functions as a 1:125 reverse split for ADS holders. This restructuring appears to be a strategic move to maintain OTC listing compliance and potentially boost the trading price. While this doesn't change the underlying value of the company, it's worth noting that Dunxin's micro-cap status (
The mechanics of this change involve mandatory ADS surrender and reissuance, with fractional shares being liquidated and cash distributed to holders. Historical patterns suggest that such dramatic ratio changes often signal underlying financial stress or compliance issues. The timing, coming at year-end and the magnitude of the adjustment (
For the Company's ADS holders, the ADS ratio change will have the same effect as a one-for-one hundred and twenty-five reverse split. There will be no change to the Company's Class A ordinary shares. ADS holders of record on the effective date will need to surrender their ADS to the depositary bank for cancellation and exchange in connection with the ADS ratio change, with further details to be provided in the notice by the depositary bank. As of the effective date for the ADS ratio change, Dunxin's ADSs will continue to be traded on the OTC under the symbol "DXFFY".
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.
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 the ADS price on a proportionate basis.
About Dunxin Financial Holdings Limited
Dunxin is a licensed microfinance lender serving individuals and SMEs in
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of market in
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SOURCE Dunxin Financial Holding Limited
FAQ
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