XChange TEC.INC Announces Plan to Implement ADS Ratio Change
XChange TEC (NASDAQ: XHG) announced plans to modify its American Depositary Shares (ADS) ratio from 1 ADS representing 600,000 Class A ordinary shares to 1 ADS representing 12,000,000 Class A ordinary shares. This change, effective November 8, 2024, will function like a 1-for-20 reverse ADS split. ADS holders must exchange every 20 old ADSs for 1 new ADS through The Bank of New York Mellon. The stock will continue trading under 'XHG' on Nasdaq. Fractional ADSs will be sold, with net proceeds distributed to holders.
XChange TEC (NASDAQ: XHG) ha annunciato piani per modificare il rapporto delle sue Azioni Depositarie Statunitensi (ADS) da 1 ADS che rappresenta 600.000 azioni ordinarie di Classe A a 1 ADS che rappresenta 12.000.000 azioni ordinarie di Classe A. Questa modifica, efficace dall'8 novembre 2024, funzionerà come uno split inverso ADS 1 per 20. I detentori di ADS devono scambiare ogni 20 vecchie ADS per 1 nuova ADS tramite La Banca di New York Mellon. Le azioni continueranno a essere scambiate sotto 'XHG' su Nasdaq. Gli ADS frazionari saranno venduti, con i proventi netti distribuiti ai detentori.
XChange TEC (NASDAQ: XHG) anunció planes para modificar su relación de Acciones Depositarias Americanas (ADS) de 1 ADS que representa 600,000 acciones ordinarias de Clase A a 1 ADS que representa 12,000,000 acciones ordinarias de Clase A. Este cambio, efectivo a partir del 8 de noviembre de 2024, funcionará como una división inversa de ADS 1 por 20. Los tenedores de ADS deben intercambiar cada 20 ADS viejas por 1 nueva ADS a través del Banco de Nueva York Mellon. Las acciones continuarán cotizando bajo 'XHG' en Nasdaq. Los ADS fraccionarios serán vendidos, con los ingresos netos distribuidos a los tenedores.
XChange TEC (NASDAQ: XHG)는 미국 예탁주식(ADS)의 비율을 1 ADS 600,000주에서 1 ADS 12,000,000주로 수정할 계획을 발표했습니다. 이 변경은 2024년 11월 8일부터 시행되며, 1대 20 비율의 역분할 형태로 작용합니다. ADS 보유자는 구 ADS 20주를 새 ADS 1주와 교환해야 하며, 이는 뉴욕 멜론 은행을 통해 이루어집니다. 주식은 나스닥에서 'XHG'로 계속 거래됩니다. 분할된 ADS는 매각되며, 순수익은 보유자에게 분배됩니다.
XChange TEC (NASDAQ: XHG) a annoncé des projets pour modifier le rapport de ses American Depositary Shares (ADS) de 1 ADS représentant 600 000 actions ordinaires de classe A à 1 ADS représentant 12 000 000 actions ordinaires de classe A. Ce changement, entrant en vigueur le 8 novembre 2024, fonctionnera comme un regroupement inversé de 1 pour 20. Les détenteurs d'ADS doivent échanger chaque 20 anciennes ADS contre 1 nouvelle ADS via la Banque de New York Mellon. Les actions continueront à être négociées sous 'XHG' sur le Nasdaq. Les ADS fractionnaires seront vendues, et les produits nets seront distribués aux détenteurs.
XChange TEC (NASDAQ: XHG) gab bekannt, dass sie das Verhältnis ihrer American Depositary Shares (ADS) von 1 ADS, die 600.000 Stammaktien der Klasse A repräsentieren, auf 1 ADS, die 12.000.000 Stammaktien der Klasse A repräsentieren, ändern werden. Diese Änderung, die ab dem 8. November 2024 in Kraft tritt, wird wie ein 1 zu 20 Rücksplit bei ADS funktionieren. ADS-Inhaber müssen jeweils 20 alte ADS gegen 1 neue ADS über die Bank of New York Mellon austauschen. Die Aktien werden weiterhin unter 'XHG' an der Nasdaq gehandelt. Bruch-ADS werden verkauft, wobei der Nettoerlös an die Inhaber verteilt wird.
- None.
- Implementation of reverse ADS split (1:20) could signal potential share price concerns
- Mandatory exchange requirement may cause inconvenience to shareholders
- No guarantee that post-split ADS price will maintain proportional value
Insights
This ADS ratio change represents a technical restructuring aimed at boosting XChange TEC's share price through a 1:20 reverse split equivalent. The move from 1 ADS representing 600,000 shares to 12,000,000 shares effectively consolidates the trading units, which could help maintain NASDAQ listing requirements and potentially attract institutional investors who may avoid low-priced stocks.
The mechanics of this change will see the share price multiply by approximately 20x, though market dynamics may affect the final pricing. Investors should note that while their number of ADSs will decrease by a factor of 20, the total value of their holdings should theoretically remain unchanged. The mandatory exchange process and handling of fractional shares through cash distribution demonstrates a well-structured approach to this technical adjustment.
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 (
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.
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SOURCE XChange TEC.INC
FAQ
When will XHG's ADS ratio change take effect?
What is the new ADS ratio for XHG stock?
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