Tokyo Lifestyle Co., Ltd. Announces Plan of ADS Ratio Change
Tokyo Lifestyle Co., (TKLF) announced a change in the ratio of its American Depositary Shares (ADSs) from one ADS representing one ordinary share to one ADS representing 10 ordinary shares, effective November 15, 2024. This ADS Ratio Change will function as a one-for-ten reverse ADS split, aimed at supporting liquidity and regaining compliance with Nasdaq's minimum bid price requirement.
On the Effective Date, holders of certificated ADSs must surrender them for cancellation and receive one new ADS for every 10 existing ADSs. Uncertificated ADSs will be automatically exchanged. Fractional new ADSs will not be issued; instead, fractional entitlements will be sold, and net cash proceeds distributed to ADS holders. The company expects the ADS trading price to increase proportionally but provides no assurance of this outcome.
Tokyo Lifestyle Co., (TKLF) ha annunziato una modifica nel rapporto delle sue American Depositary Shares (ADSs) da una ADS che rappresenta un'azione ordinaria a una ADS che rappresenta 10 azioni ordinarie, con effetto dal 15 novembre 2024. Questa modifica del rapporto ADS funzionerà come un frazionamento inverso delle ADS in un rapporto di uno a dieci, volto a sostenere la liquidità e a riguadagnare la conformità con il requisito del prezzo minimo di offerta di Nasdaq.
Alla data di efficacia, i possessori di ADS cartacee devono consegnarle per l'annullamento e ricevere una nuova ADS per ogni 10 ADS esistenti. Le ADS non certificate saranno scambiate automaticamente. Non verranno emesse nuove ADS frazionarie; invece, i diritti frazionari saranno venduti e i proventi netti distribuiti ai possessori di ADS. L'azienda si aspetta che il prezzo di scambio delle ADS aumenti proporzionalmente, ma non fornisce alcuna garanzia riguardo a questo risultato.
Tokyo Lifestyle Co., (TKLF) anunció un cambio en la proporción de sus American Depositary Shares (ADSs) de una ADS que representa una acción ordinaria a una ADS que representa 10 acciones ordinarias, con efecto a partir del 15 de noviembre de 2024. Este cambio de proporción de ADS funcionará como una división inversa de ADS uno por diez, con el objetivo de apoyar la liquidez y recuperar el cumplimiento con el requisito del precio mínimo de oferta de Nasdaq.
En la fecha de efectividad, los titulares de ADS certificados deben entregarlos para su cancelación y recibir una nueva ADS por cada 10 ADS existentes. Las ADS no certificadas se intercambiarán automáticamente. No se emitirán nuevas ADS fraccionarias; en su lugar, se venderán los derechos fraccionarios y se distribuirán los ingresos netos a los titulares de ADS. La empresa espera que el precio de negociación de las ADS aumente proporcionalmente, pero no garantiza este resultado.
도쿄 라이프스타일 주식회사 (TKLF)는 2024년 11월 15일부로 하나의 ADS가 하나의 보통주를 나타내는 것에서 하나의 ADS가 10개의 보통주를 나타내는 것으로 그 비율을 변경한다고 발표했습니다. 이 ADS 비율 변경은 1대 10의 역 분할 형태로 진행되며, 유동성을 지원하고 Nasdaq의 최소 청약가 요건을 충족하기 위해 설계되었습니다.
효력 발생일에, 보유자가 인증된 ADS를 취소하기 위해 제출해야 하며 기존 ADS 10개당 새로운 ADS 1개를 받게 됩니다. 비인증 ADS는 자동으로 교환됩니다. 새로운 ADS의 일부는 발행되지 않으며, 대신 일부 권리는 판매되고 순수익이 ADS 보유자에게 분배됩니다. 회사는 ADS 거래 가격이 비례적으로 증가할 것으로 예상하지만, 이 결과에 대한 보장은 없습니다.
Tokyo Lifestyle Co., (TKLF) a annoncé un changement dans le ratio de ses American Depositary Shares (ADSs) passant d’une ADS représentant une action ordinaire à une ADS représentant 10 actions ordinaires, effective à partir du 15 novembre 2024. Ce changement de ratio ADS fonctionnera comme un fractionnement inversé d'une pour dix, visant à soutenir la liquidité et à retrouver la conformité avec l'exigence du prix minimum d'offre de Nasdaq.
À la date d'entrée en vigueur, les détenteurs d'ADS certifiées doivent les remettre pour annulation et recevoir une nouvelle ADS pour chaque 10 ADS existantes. Les ADS non certifiées seront échangées automatiquement. Aucun nouvel ADS fractionnaire ne sera émis ; à la place, les droits fractionnaires seront vendus et les produits nets distribués aux détenteurs d'ADS. L'entreprise s'attend à ce que le prix de négociation des ADS augmente proportionnellement, mais n'offre aucune garantie à cet égard.
Tokyo Lifestyle Co., (TKLF) kündigte eine Änderung des Verhältnisses seiner American Depositary Shares (ADSs) von einer ADS, die eine Stammaktie repräsentiert, zu einer ADS, die 10 Stammaktien repräsentiert, an, die am 15. November 2024 wirksam wird. Diese Änderung des ADS-Verhältnisses wird als eine 1:10 Rücksplitterung der ADS funktionieren, um die Liquidität zu unterstützen und die Einhaltung der Mindestangebotspreisanforderung von Nasdaq wiederzuerlangen.
Am Wirksamkeitsdatum müssen Inhaber von zertifizierten ADS diese zur Stornierung übergeben und erhalten eine neue ADS für jede 10 bestehenden ADS. Unzertifizierte ADS werden automatisch umgetauscht. Es werden keine fraktionierten neuen ADS ausgegeben; stattdessen werden fraktionierte Ansprüche verkauft und die Nettobarerlöse an die ADS-Inhaber verteilt. Das Unternehmen erwartet, dass der Handelspreis der ADS proportional steigen wird, gibt jedoch keine Garantie für dieses Ergebnis.
- The ADS Ratio Change aims to support liquidity in the Company's ADSs.
- The change is intended to help the Company regain compliance with Nasdaq's minimum bid price requirement.
- There is no assurance that the ADS trading price following the change will be proportionally equal to or greater than the ADS trading price prior to the change.
- No fractional new ADSs will be issued, potentially causing inconvenience to ADS holders.
Insights
This ADS ratio change from 1:1 to 1:10 is a technical maneuver primarily aimed at boosting TKLF's share price to meet Nasdaq's minimum bid price requirement. While this reverse split-like action doesn't fundamentally change the company's value, it's a concerning signal about the stock's poor performance. The move effectively consolidates every 10 existing ADSs into 1 new ADS, which should theoretically multiply the trading price by 10.
With a small market cap of just
Tokyo, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd, “Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced its plan to change the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares from one ADS representing one ordinary share to one ADS representing 10 ordinary shares (the “ADS Ratio Change”). The ADS Ratio Change will become effective on November 15, 2024 (the “Effective Date”).
For the Company’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-ten reverse ADS split and will not impact an ADS holder’s proportional equity interest in the Company. The ADS Ratio Change is intended to further support the liquidity in the Company’s ADSs and enable the Company to regain compliance with the Nasdaq minimum bid price requirement.
On the Effective Date, registered holders of the Company’s ADSs held in certificated form will be required on a mandatory basis to surrender their certificated ADSs to The Bank of New York Mellon, the depositary bank (the “Depositary”), for cancellation and received one new ADS in exchange for every 10 existing ADSs surrendered. Holders of uncertificated ADSs in the Direct Registration System and The Depository Trust Company will have their ADSs automatically exchanged.
The exchange of every 10 then-held (existing) ADSs for one new ADS will occur automatically on the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the Depositary. The Company’s ADSs will continue to be traded on the Nasdaq Capital Market under the ticker symbol “TKLF.”
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, 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 ADS Ratio Change, the ADS trading price is expected to increase proportionally, although the Company makes no assurance that the ADS trading price following the change will be proportionally equal to or greater than the ADS trading price prior to the change, or that the change in the ADS Ratio will have any effect on the liquidity of the Company’s ADSs.
About Tokyo Lifestyle Co., Ltd.
Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Tokyo Lifestyle Co., Ltd.
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FAQ
What is the new ADS ratio for TKLF?
When will the ADS Ratio Change for TKLF be effective?
Why is TKLF changing its ADS ratio?
What will happen to fractional ADS entitlements after the TKLF ADS ratio change?
Will TKLF issue fractional new ADSs after the ratio change?
