Lapco Holdings (08472) announced that the company has established a sponsored Level 1 American Depositary Receipt program with Bank of New York Mellon (Bank of New York Mellon) as the depositary bank, effective from August 9, 2024 (New York time).

American Depositary Receipts (ADRs) are transferable securities, similar to stocks, issued by a US depositary bank appointed by the company, serving as a voucher for one or more ADR shares, with each share equivalent to 100 ordinary shares of the company. Under the plan, the ADRs will be issued based on the ordinary shares held in custody under the plan and traded on the GEM of the Hong Kong Stock Exchange, with ADRs traded on the US OTC market.

Under the plan, ADR holders and holders have the same rights as ordinary shareholders of the company in terms of dividends, distributions and voting rights, but are subject to the execution procedures specified in the custody agreement entered into by Bank of New York Mellon (as depositary bank), the company and ADR holders and holders.

The number of ADRs registered by the company under the plan is 0.1 billion shares. The establishment of the plan by the company does not involve the issuance of new shares, and the ADRs are based on the company's currently issued shares. Therefore, the company will not benefit from the establishment of the plan.

According to the announcement, the plan will provide the company with a channel to enter the US capital markets with the lowest financial cost and minimum maintenance work.