FLJ Group, also known as XChange TEC.INC, listed on NASDAQ under the ticker XHG, has announced a significant change to its American depositary shares (ADSs) structure. The company plans to adjust the ADS ratio from one ADS representing 600,000 Class A ordinary shares to one ADS representing 12,000,000 Class A ordinary shares. This adjustment is effectively a one-for-twenty reverse ADS split, with no alteration to the Class A ordinary shares. The change is scheduled to take effect at the start of trading on November 8, 2024, on The Nasdaq Capital Market. ADS holders will be mandated to exchange their old ADSs for new ones at a rate of one new ADS for every twenty old ADSs held. The Bank of New...Show More

FLJ Group, also known as XChange TEC.INC, listed on NASDAQ under the ticker XHG, has announced a significant change to its American depositary shares (ADSs) structure. The company plans to adjust the ADS ratio from one ADS representing 600,000 Class A ordinary shares to one ADS representing 12,000,000 Class A ordinary shares. This adjustment is effectively a one-for-twenty reverse ADS split, with no alteration to the Class A ordinary shares. The change is scheduled to take effect at the start of trading on November 8, 2024, on The Nasdaq Capital Market. ADS holders will be mandated to exchange their old ADSs for new ones at a rate of one new ADS for every twenty old ADSs held. The Bank of New York Mellon will manage the exchange process. Fractional new ADSs will not be issued; instead, they will be sold, and the net cash proceeds will be distributed to the holders. While the company expects the ADS price to increase proportionally after the ratio change, it does not guarantee that the post-change ADS price will be equal to or greater than twenty times the pre-change price.