Xiao-I Corporation Announces Plan to Implement ADS Ratio Change

Rhea-AI Summary

Xiao-I (NASDAQ: AIXI) will change its ADS Ratio from one ADS to one-third of an ordinary share to one ADS to 60 ordinary shares, effecting a one-for-twenty reverse ADS split for ADS holders. The change is expected to be effective on or about May 11, 2026 (ET).

Holders of uncertificated ADSs in DTC will be automatically exchanged by Citibank N.A.; no ordinary shares will be issued or cancelled. Fractional ADS entitlements will be aggregated and sold for cash, net of fees, taxes and expenses. The ADSs will continue trading under the symbol AIXI. The company said the ADS price is expected to increase proportionally but gave no assurance.

Positive

• Implements a one-for-20 reverse ADS split (1 ADS now equals 60 ordinary shares)
• Effective on or about May 11, 2026, with automatic DTC exchange by Citibank
• ADS will continue trading on Nasdaq under the unchanged symbol AIXI

Negative

• Company gives no assurance post-change ADS price will be equal to or greater than 20× pre-change price
• No fractional new ADSs issued; fractional entitlements will be sold for cash (net of fees, taxes and expenses)

News Market Reaction – AIXI

-29.62%

56 alerts

-29.62% Session close to close

+41.7% Peak Tracked

-33.7% Trough Tracked

$18.70M Market Cap

0.2x Rel. Volume

In the Apr 24 session, AIXI declined 29.62%, reflecting a significant negative market reaction. Argus tracked a peak move of +41.7% during that session. Argus tracked a trough of -33.7% from its starting point during tracking. Our momentum scanner triggered 56 alerts that day, indicating high trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -29.6% in the session following this news. A negative reaction despite the purely ...

Analysis

The stock dropped -29.6% in the session following this news. A negative reaction despite the purely structural ADS Ratio change would fit a pattern where investor sentiment has sometimes moved counter to fundamentals. For example, a positive partnership renewal on Oct 31, 2025 coincided with a -5.31% move. The company has also faced Nasdaq listing deficiencies and prior dilutive financing, so investors could interpret ratio changes cautiously even though no new ordinary shares are issued in this action.

Key Figures

Current ADS ratio: 1 ADS : 1/3 ordinary share New ADS ratio: 1 ADS : 60 ordinary shares Reverse ADS split effect: 1-for-20 +5 more

8 metrics

Current ADS ratio 1 ADS : 1/3 ordinary share Existing ADS structure before announced change

New ADS ratio 1 ADS : 60 ordinary shares Planned ADS Ratio after change

Reverse ADS split effect 1-for-20 Company states change has same effect for ADS holders

ADS exchange rate 20 old ADS for 1 new ADS Automatic exchange on Effective Date via Depositary

Effective date On or about May 11, 2026 Expected effective date of ADS Ratio change (U.S. Eastern Time)

Par value US$0.00005 per share Par value of ordinary shares referenced in announcement

No fractional ADSs Fractions aggregated and sold Fractional new ADSs not issued; cash proceeds distributed

Price change pre-news 7.81% 24h move before ADS ratio announcement at price <b>1.08</b>

Historical Context

4 past events · Latest: Mar 31 (Positive)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 31	Patent litigation update	Positive	+18.2%	Chinese Supreme Court upheld core AI patents against Apple challenges.
Dec 23	Nasdaq deficiency notices	Negative	+1.5%	Nasdaq cited minimum bid price and MVPHS compliance deficiencies.
Nov 21	AI services contract renewal	Positive	+28.5%	Renewed cognitive AI services contract with major automotive joint venture.
Oct 31	Insurance partnership renewal	Positive	-5.3%	Renewed AI-powered conversational platform partnership with multinational insurer.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has produced large, mixed reactions, with both positive and negative moves following ostensibly positive catalysts.

Recent Company History

Over the last year, Xiao-I’s news flow has included legal, listing, and commercial developments. A patent-validity win against Apple on Mar 31, 2026 saw a 18.23% gain. Nasdaq listing deficiency notices on Dec 23, 2025 produced only a modest 1.53% rise despite negative implications. Commercial contract renewals in late 2025 drove a 28.51% jump on Nov 21, but a similar partnership update on Oct 31 coincided with a -5.31% move, underscoring inconsistent reactions to positive news.

Key Terms

american depositary shares, ads ratio, reverse ads split, the depository trust company, +2 more

6 terms

american depositary shares financial

"it plans to change the ratio of its American Depositary Shares (the "ADSs")"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

ads ratio financial

"the "ADS Ratio"), par value US$0.00005 per share, from the current ADS Ratio"

The ads ratio measures the proportion of a company's revenue that comes from advertising activities compared to other sources. It helps investors understand how much of a company's income depends on advertising efforts, similar to how a restaurant's income might rely heavily on dine-in sales versus takeout. A higher ads ratio indicates a greater dependence on advertising-related revenue, which can signal potential risks or opportunities depending on market trends.

reverse ads split financial

"the change in the ADS Ratio will have the same effect as a one-for-twenty reverse ADS split"

A reverse ADS split is a corporate action that combines multiple American Depositary Shares (ADS) into a smaller number of ADS, so each new ADS represents more underlying ordinary shares and the price per ADS rises proportionally. Think of merging several small coins into one bigger coin: your total value stays the same, but the share count and per‑share price change, which can affect trading liquidity, index inclusion, and investor perception of the stock.

the depository trust company financial

"Holders of uncertificated ADSs in The Depository Trust Company (DTC) will have"

The Depository Trust Company is a large organization that safely manages and keeps electronic records of ownership for stocks, bonds, and other securities. It acts like a digital warehouse, making it easier and faster for investors to buy, sell, and transfer investments without needing physical paper certificates. This helps ensure transactions are secure, accurate, and completed smoothly.

depositary bank financial

"new ADSs being issued by Citibank, N.A., the depositary bank (the "Depositary")"

A depositary bank is a financial institution that holds and safeguards a company's or investor’s securities, such as stocks or bonds, in a secure account. It acts like a digital safe, ensuring that ownership records are accurate and that transactions are processed smoothly. For investors, it provides confidence that their investments are protected and correctly recorded, making buying, selling, or transferring securities reliable and efficient.

nasdaq stock market regulatory

"The Company's ADSs will continue to be traded on the Nasdaq Stock Market under"

The Nasdaq Stock Market is a place where many companies' shares are bought and sold, functioning like a marketplace for investing in businesses. It matters to investors because it provides a platform to buy and sell ownership stakes in companies, helping people grow their wealth or fund business growth. Known for hosting many technology and innovative companies, it is a key indicator of the health of those sectors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHANGHAI, April 23, 2026 /PRNewswire/ -- Xiao-I Corporation ("Xiao-I" or the "Company") (NASDAQ: AIXI), a leading artificial intelligence company, today announced that it plans to change the ratio of its American Depositary Shares (the "ADSs") to its ordinary shares (the "ADS Ratio"), par value US$0.00005 per share, from the current ADS Ratio of one ADS to one-third of an ordinary share to a new ADS Ratio of one ADS to 60 ordinary shares.

For the Company's ADS holders, the change in the ADS Ratio will have the same effect as a one-for-twenty reverse ADS split. The Company anticipates that the change in the ADS Ratio will be effective on or about May 11, 2026 (U.S. Eastern Time) (the "Effective Date").

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 twenty (20) 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 twenty 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 April 30, 2024, 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-302751715.html

SOURCE Xiao-I Corporation

FAQ

What ADS Ratio change did Xiao-I announce for AIXI and when is it effective?

The company announced changing the ADS Ratio to one ADS per 60 ordinary shares. According to the company, the change is expected to be effective on or about May 11, 2026 (U.S. Eastern Time).

How will the ADS exchange work for AIXI holders in DTC after the May 11, 2026 change?

Holders of uncertificated ADSs in DTC will be automatically exchanged; no action is required. According to the company, Citibank N.A. will cancel existing ADSs and issue new ADSs at a 20:1 ratio.

Will Xiao-I AIXI ordinary shares be issued or cancelled because of the ADS Ratio change?

No ordinary shares will be issued or cancelled as a result of the ADS Ratio change. According to the company, the adjustment affects only the ADS representation and not the underlying ordinary share count.

What happens to fractional ADS entitlements after Xiao-I's ADS Ratio change for AIXI?

No fractional new ADSs will be issued; fractional entitlements will be aggregated and sold for cash. According to the company, net cash proceeds will be distributed to the applicable ADS holders after deductions.

Will Xiao-I's AIXI ticker or listing change after the ADS Ratio adjustment?

The ADSs will continue to trade on Nasdaq under the same symbol, AIXI. According to the company, the listing and ticker will remain unchanged despite the reverse ADS split effect.