Xiao-I Corporation Announces Plan to Implement ADS Ratio Change
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Rhea-AI Summary
Xiao-I (NASDAQ: AIXI) plans to change its American Depositary Share (ADS) ratio from one ADS representing sixty (60) ordinary shares to one ADS representing four hundred and twenty (420) ordinary shares, equivalent in effect to a one-for-seven reverse ADS split.
The change is expected to take effect on or about September 8, 2026/b) U.S. Eastern Time. Existing ADSs held in DTC will be automatically exchanged at a 7‑to‑1 rate by Citibank, N.A. as depositary. No fractional ADSs will be issued; fractional entitlements will be aggregated, sold, and net cash proceeds distributed. The ADSs will continue trading on Nasdaq under ticker , with no change to the number of underlying ordinary shares.
Positive
- ADS ratio change to 1:420 from 1:60, effective around September 8, 2026
- Automatic 7-for-1 ADS exchange for uncertificated ADSs in DTC, requiring no action from holders
Negative
- None.
News Explained
The planned exchange changes ADS counts, not underlying ordinary-share ownership; fractional entitlements will be sold for cash.
The plan remains prospective: on or about
The depositary would cancel the existing ADSs and issue replacement ADSs, while the company says no underlying ordinary shares will be issued or cancelled; the change therefore alters the ADS denomination and count, not the underlying ordinary-share base.
Because fractional new ADSs will not be issued, the depositary will aggregate and sell fractional entitlements and distribute the net proceeds, after fees, taxes and expenses, to the applicable holders.
Details
News Market Reaction – AIXI
On Aug 20, the day this news came out, AIXI closed 21.11% below the previous close. Argus tracked a trough of -32.5% from its starting point during tracking. Our momentum scanner recorded 45 alerts for this stock that day. Relative volume reached 10.6x the daily average during tracking.
Data tracked by StockTitan Argus for the Aug 20 session.
Key Figures
- Current ADS ratio
- 1 ADS to 60 ordinary shares
- Before the announced change
- New ADS ratio
- 1 ADS to 420 ordinary shares
- Planned ratio
- Reverse ADS split equivalent
- One-for-seven
- Effect for ADS holders
- Effective date
- September 8, 2026
- Anticipated U.S. Eastern Time effective date
- Automatic exchange
- Every 7 existing ADSs for 1 new ADS
- On the Effective Date
- Ordinary share par value
- US$0.00005 per share
- Underlying ordinary shares
Historical Context
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First-instance court rulings dismissed infringement claims involving Apple's Siri technology.
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Company reported regaining full compliance with Nasdaq continued listing standards.
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Company announced a change from one ADS per three shares to one ADS per sixty.
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Company announced a one-for-twenty reverse ADS split effective in May.
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China's Supreme People's Court affirmed the validity of Xiao-I's patents.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ads ratio financial
reverse ads split financial
depositary bank financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
For the Company's ADS holders, the change in the ADS Ratio will have the same effect as a one-for-seven reverse ADS split. The Company anticipates that the change in the ADS Ratio will be effective on or about September 8, 2026 (
On the Effective Date, holders of uncertificated ADSs in The Depository Trust Company (DTC) will have their ADSs automatically exchanged and need not take any action. The exchange of every seven (7) then-held (existing) ADSs for one (1) new ADS will occur automatically at the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by Citibank, N.A., the depositary bank (the "Depositary"). The Company's ADSs will continue to be traded on the Nasdaq Stock Market under the symbol "AIXI."
No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the Depositary and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses) will be distributed to the applicable ADS holders by the Depositary. The change in the ADS Ratio will have no impact on the Company's underlying ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio.
As a result of the change in the ADS Ratio, the ADS trading price is expected to increase proportionally, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than seven times the ADS trading price before the change.
About Xiao-I Corporation
Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, its future business development, financial condition, and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on May 15, 2026, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
View original content:https://www.prnewswire.com/news-releases/xiao-i-corporation-announces-plan-to-implement-ads-ratio-change-302855822.html
SOURCE Xiao-I Corporation
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