Earlier Reported, FLJ Group Limited Announces Plan To Implement ADS Ratio Change From 1 ADS Representing 15,000 Class A Shares To 1 ADS Representing 600,000 Class A Shares (1-For-40)
Portfolio Pulse from Benzinga Newsdesk
FLJ Group Limited (NASDAQ:FLJ) announced a change in the ratio of its American depositary shares (ADSs) from 1 ADS representing 15,000 Class A shares to 1 ADS representing 600,000 Class A shares, effectively a 1-for-40 reverse ADS split. This change will occur on December 7, 2023, and will require ADS holders to exchange their old ADSs for new ones at the Bank of New York Mellon. No fractional new ADSs will be issued; instead, fractional entitlements will be sold and proceeds distributed to the holders. The company expects the ADS price to increase proportionally but cannot assure it will be equal to or greater than forty times the pre-change price.
December 07, 2023 | 2:45 pm
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NEUTRAL IMPACT
FLJ Group Limited's 1-for-40 reverse ADS split is expected to proportionally increase the ADS price, but there is no guarantee that the post-split price will be equal to or greater than forty times the pre-split price.
Reverse stock splits are typically executed to increase the market price of a company's shares, which can potentially make the stock more attractive to investors. However, the actual impact on the stock price can vary and is not guaranteed to result in a proportional increase. The high relevance score is due to the direct impact of the news on FLJ's ADSs, while the importance is significant as it affects the stock's trading characteristics. The confidence level is not at the maximum because market reactions to reverse splits can be unpredictable.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 100