XCharge Limited said it will implement a 1-for-20 reverse split of its American Depositary Shares (ADS) effective at the open of business on Thursday.
Under the change, each ADS will represent 800 Class A ordinary shares, up from the current ratio of one ADS for 40 shares. The depositary bank, The Bank of New York Mellon, will automatically exchange every 20 existing ADSs for one new ADS. The new CUSIP for the post-split ADSs is 98370X202.
The company emphasized that the reverse split applies only to ADSs and will not affect the underlying Class A ordinary shares. No new ordinary shares will be issued or canceled, and holders of ordinary shares will remain unaffected by the transaction.
Fractional ADSs resulting from the split will not be issued. Instead, the depositary bank will aggregate fractional entitlements and sell them, distributing the net cash proceeds—after deducting fees, taxes, and expenses—to the relevant ADS holders.
XCharge, which provides high-power electric vehicle charging solutions, said the ADS trading price is expected to rise proportionately following the split. However, it cautioned that there can be no assurance the post-split price will equal or exceed 20 times the pre-split price.
