Zhihu Inc. (Zhihu), known by its ticker symbol ZH, has announced a reverse stock split that will take effect on May 10, 2024. In this 1-for-6 reverse split, each American Depositary Share (ADS) of Zhihu will be converted into approximately 0.166667 new ADSs. The company has stated that cash will be provided in lieu of any fractional shares resulting from the split. Concurrent with the reverse split, the option symbol for Zhihu will change from ZH to ZH1. The new deliverable per contract post-split will include 16 new Zhihu ADSs and cash in lieu of approximately 0.6667 fractional shares. The cash in lieu amount for fractional shares will be determined and fixed, and will not fluctuate with the price changes of any security. The settlement...Show More

Zhihu Inc. (Zhihu), known by its ticker symbol ZH, has announced a reverse stock split that will take effect on May 10, 2024. In this 1-for-6 reverse split, each American Depositary Share (ADS) of Zhihu will be converted into approximately 0.166667 new ADSs. The company has stated that cash will be provided in lieu of any fractional shares resulting from the split. Concurrent with the reverse split, the option symbol for Zhihu will change from ZH to ZH1. The new deliverable per contract post-split will include 16 new Zhihu ADSs and cash in lieu of approximately 0.6667 fractional shares. The cash in lieu amount for fractional shares will be determined and fixed, and will not fluctuate with the price changes of any security. The settlement of the ZH component of the ZH1 deliverable will be processed through the National Securities Clearing Corporation (NSCC), while the settlement of the cash portion will be delayed until the cash in lieu amount is finalized. Once the amount is determined, the Options Clearing Corporation (OCC) will require put exercisers and call assignees to deliver the appropriate cash amount.