SOS Limited (NYSE: SOS) announced plans to adjust the ratio of its American Depositary Shares (ADSs), shifting from the current ratio of one ADS representing ten Class A ordinary shares to one ADS representing 150 Class A ordinary shares. This ADS ratio adjustment is expected to take effect on or around November 19, 2024.
For ADS holders, this adjustment will effectively operate as a one-for-fifteen reverse split. On the effective date, ADSs held within The Depository Trust Company and Direct Registration System will be automatically exchanged, requiring no action from ADS holders. Existing ADSs will be swapped at a rate of fifteen current ADSs for one new ADS, with old ADSs canceled and new ADSs issued by the depositary bank.
Fractional ADSs will not be issued in this process. Instead, fractional entitlements will be consolidated, sold by the depositary bank, and the net cash proceeds (minus any fees, taxes, and expenses) will be distributed to eligible ADS holders.
This ratio change will not affect the underlying Class A ordinary shares. Post-change, SOS’s ADSs will continue trading on the NYSE under the symbol “SOS.” While the ADS price is expected to increase proportionally with this change, SOS cannot guarantee that the new ADS price will align precisely on a proportionate basis.
