Lixiang Education Unveils ADS Ratio Adjustment Plans
Lixiang Education Unveils ADS Ratio Adjustment Plans
Lixiang Education Holding Co., Ltd. (NASDAQ: LXEH), a leading private education service provider in China, has announced an important change to the ratio of its American Depositary Shares (ADSs) to ordinary shares. This adjustment, which is significant for the Company and its shareholders, will transition the ADS Ratio from one ADS per ten ordinary shares to one ADS per one hundred ordinary shares. This change is set to take effect around the end of September.
Understanding the ADS Ratio Change
For stakeholders holding ADSs, this ratio modification will represent a one-for-ten reverse ADS split. On the Effective Date, holders who participate in the Direct Registration System and have their shares in The Depository Trust Company will see their ADSs automatically exchanged without needing to take any action. Specifically, each holder will have their existing ADSs converted at the new ratio, with ten existing ADSs being replaced by one new ADS.
No Fractional Shares Issued
A key aspect of this ADS Ratio Change is the handling of fractional shares. The Company has clarified that no fractional new ADSs will be issued. Instead, any fractional entitlements arising from the exchange will be aggregated. The depositary bank will sell these fractions and distribute the net cash proceeds, after fees and taxes, to the respective ADS holders. This approach ensures that shareholders receive their fair value without the complications that can arise from fractional shares.
Market Operations Post-Adjustment
Investors should note that the Company's ADSs will continue to be traded on the Nasdaq Global Market, maintaining the symbol “LXEH.” It is critical to highlight that this change will not alter the Company's underlying ordinary shares; no ordinary shares will be created or cancelled in relation to this adjustment. This distinction maintains the integrity of the equity structure while potentially enhancing the value proposition for existing shareholders.
About Lixiang Education Holding Co., Ltd.
Established in Lishui City, Lixiang Education Holding Co., Ltd. is a respected private education provider within Zhejiang Province. The Company is committed to fostering the healthy growth of its students, paving the way for their future success and happiness. This commitment to education quality is at the heart of their operational philosophy.
Contact Information for Inquiries
For any additional information or inquiries regarding the ADS Ratio Change, interested parties can reach out to Siyi Ye at the following:
Phone: +86-578-2267142
Email: irlxeh@lsmxjy.com
Frequently Asked Questions
What is the ADS Ratio Change announced by Lixiang Education?
The ADS Ratio Change involves adjusting the ratio from one ADS per ten ordinary shares to one ADS per one hundred ordinary shares to streamline share value.
When will the ADS Ratio Change take effect?
The Company anticipates the ADS Ratio Change will be effective on or about September 30.
How will this change impact current ADS holders?
Current ADS holders will have their ADSs automatically exchanged at the new ratio, so they do not need to take any direct action.
What happens to fractional ADSs with this change?
No fractional ADSs will be issued. Instead, fractional entitlements will be aggregated, sold, and the net cash proceeds distributed to ADS holders.
Will Lixiang Education’s ordinary shares be affected by the ADS ratio change?
No, this adjustment will not impact the Company’s underlying ordinary shares, as no shares will be issued or cancelled due to the ADS Ratio Change.
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