Lixiang Education Announces Changes to ADS Ratio
Lixiang Education Holding Co., Ltd. (NASDAQ: LXEH), a prominent provider of private education services in China, has revealed an important alteration regarding the ratio of its American Depositary Shares (ADSs) to ordinary shares. This adjustment is significant for both the Company and its shareholders. The new ratio will change from one ADS per ten ordinary shares to one ADS per one hundred ordinary shares and is expected to take effect near the end of September.
What the ADS Ratio Change Means
For those holding ADSs, this change signifies a one-for-ten reverse ADS split. On the Effective Date, those participating in the Direct Registration System and whose shares are held by The Depository Trust Company will have their ADSs exchanged automatically without needing to take any steps themselves. Each holder's existing ADSs will convert to the new ratio, meaning that every ten existing ADSs will be exchanged for one new ADS.
Dealing with Fractional Shares
One important detail regarding the ADS Ratio Change is how fractional shares will be handled. The Company has confirmed that no fractional new ADSs will be distributed. Instead, any fractional amounts resulting from the conversion will be combined. The depositary bank will sell these fractions and then share the net cash proceeds—after deducting fees and taxes—with the respective ADS holders. This way, shareholders can receive their fair value without the headaches that often accompany fractional shares.
Trading Post-Adjustment
Investors should be aware that the Company's ADSs will continue trading on the Nasdaq Global Market under the symbol “LXEH.” It's important to emphasize that this change will not affect the Company’s ordinary shares; there will be no creation or cancellation of ordinary shares related to this adjustment. This distinction helps maintain the integrity of the equity structure while potentially improving the value for current shareholders.
About Lixiang Education Holding Co., Ltd.
Lixiang Education Holding Co., Ltd., based in Lishui City, is a reputable private education provider in Zhejiang Province. The Company is dedicated to nurturing the healthy development of its students, paving the way for their future success and well-being. This commitment to educational quality lies at the core of their mission.
Contact for Inquiries
If you have further questions or need additional information regarding the ADS Ratio Change, feel free to contact 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 is an adjustment from one ADS per ten ordinary shares to one ADS per one hundred ordinary shares aimed at streamlining the share value.
When will the ADS Ratio Change take effect?
This change is expected to be effective on or around September 30.
How does this change affect current ADS holders?
Current ADS holders will see their ADSs exchanged automatically at the new ratio, which means no direct action is required from them.
What happens to fractional ADSs with this change?
There won't be any fractional ADSs issued. Any fractional entitlements will be aggregated, sold, and the net cash proceeds will be distributed to the ADS holders.
Will Lixiang Education’s ordinary shares be affected by the ADS ratio change?
No, the ADS ratio change will not affect the ordinary shares of the Company, as no shares will be created or cancelled as part of this adjustment.
