Yunji Inc. Announces Exciting Changes to ADS Structure
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Yunji Inc. Announces Exciting Changes to ADS Structure
Yunji Inc. (NASDAQ: YJ), a prominent membership-based social e-commerce platform, has recently revealed its plans to alter the ratio of its American Depositary Shares (ADSs) to Class A ordinary shares, known as the ADS Ratio. This change aims to streamline trading and enhance shareholder experience.
Details of the ADS Ratio Change
The company plans to move from the current ratio of one ADS representing one hundred Class A ordinary shares, to a new ratio of one ADS representing four hundred Class A ordinary shares. The anticipated effective date for this change is approaching rapidly. To comply with regulatory requirements, Yunji will file a post-effective amendment to its ADS Registration Statement, ensuring that everything is in accordance with SEC guidelines.
Impact on Current ADS Holders
This adjustment is likened to a one-for-four reverse ADS split. Existing ADS holders will exchange four of their current ADSs for one new ADS once this change takes effect. The process will be managed by Deutsche Bank Trust Company Americas, who will facilitate the swap and ensure a smooth transition for shareholders.
Fractional ADS Handling
In the event that an ADS holder ends up with a fractional new ADS, these entitlements will not be issued directly. Instead, they will be aggregated by the depositary bank and sold, with the net proceeds distributed to the respective ADS holders. It's essential to note that this change will not affect the underlying Class A ordinary shares.
Anticipated Effects on Share Prices
As a consequence of the ratio change, Yunji expects the trading price of its ADSs to adjust proportionally. While there is no guarantee regarding the price post-change, the company is optimistic that the adjusted value could significantly benefit shareholders in the long run.
About Yunji Inc.
Yunji is recognized as a leading social e-commerce platform that has effectively harnessed the power of social interaction for business growth. By offering a membership-based program, they deliver high-quality products across numerous categories, catering to the diverse needs of consumers. Utilizing advanced big data analytics and artificial intelligence, Yunji enhances user experiences and encourages members to engage with the platform and share products across their networks. This strategic approach, combined with excellent supply chain management and selective product offerings, has solidified Yunji's reputation as a trustworthy marketplace with exclusive benefits.
Frequently Asked Questions
What is the new ADS ratio for Yunji?
The new ADS ratio will be one ADS for every four hundred Class A ordinary shares, changing from the previous ratio of one ADS for every one hundred shares.
When will this change take effect?
The change is expected to become effective on or about September 13, 2024, pending regulatory approval.
How will this change affect current ADS holders?
Current ADS holders will need to surrender four existing ADSs to receive one new ADS, akin to a reverse split.
What happens to fractional ADSs?
Fractional ADS entitlements will be aggregated and converted into cash for holders as the depositary bank handles the sale of these fractions.
What is the anticipated effect on trading price?
The trading price is expected to increase proportionally, although no guarantees can be made regarding specific pricing outcomes post-change.
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