AirNet Announces Termination of Deposit Agreement
AirNet Technology Inc. (Nasdaq: ANTE) has announced the termination of its amended and restated Deposit Agreement with JPMorgan Chase Bank N.A., effective May 30, 2025. The termination affects the company's American depositary shares (ADSs) and American depositary receipts (ADRs).
On April 30, 2025, JPMorgan will notify all ADR holders about the facility termination. Upon the effective date, ADSs will be automatically cancelled through a Mandatory Exchange, where holders will receive one ordinary share (par value $0.04) for each cancelled ADS.
AirNet Technology Inc. (Nasdaq: ANTE) ha annunciato la cessazione del suo Accordo di Deposito modificato e riformulato con JPMorgan Chase Bank N.A., con effetto dal 30 maggio 2025. La cessazione riguarda le azioni depositarie americane (ADS) e le ricevute di deposito americane (ADR) della società.
Il 30 aprile 2025, JPMorgan informerà tutti i detentori di ADR della chiusura del servizio. Alla data di efficacia, le ADS saranno automaticamente annullate tramite uno Scambio Obbligatorio, in cui i titolari riceveranno un'azione ordinaria (valore nominale $0,04) per ogni ADS annullata.
AirNet Technology Inc. (Nasdaq: ANTE) ha anunciado la terminación de su Acuerdo de Depósito enmendado y reformulado con JPMorgan Chase Bank N.A., con efecto a partir del 30 de mayo de 2025. La terminación afecta a las acciones depositarias americanas (ADS) y recibos de depósito americanos (ADR) de la compañía.
El 30 de abril de 2025, JPMorgan notificará a todos los titulares de ADR sobre la finalización de la facilidad. En la fecha efectiva, las ADS serán canceladas automáticamente mediante un Intercambio Obligatorio, donde los titulares recibirán una acción ordinaria (valor nominal $0.04) por cada ADS cancelada.
AirNet Technology Inc. (나스닥: ANTE)는 JPMorgan Chase Bank N.A.와의 수정 및 재작성된 예탁 계약을 2025년 5월 30일부로 종료한다고 발표했습니다. 이번 종료는 회사의 미국 예탁 주식(ADS)과 미국 예탁 증서(ADR)에 영향을 미칩니다.
2025년 4월 30일, JPMorgan은 모든 ADR 보유자에게 시설 종료를 통지할 예정입니다. 효력 발생일에 ADS는 의무 교환을 통해 자동으로 취소되며, 보유자는 취소된 ADS 1주당 보통주 1주(액면가 $0.04)를 받게 됩니다.
AirNet Technology Inc. (Nasdaq : ANTE) a annoncé la résiliation de son accord de dépôt modifié et reformulé avec JPMorgan Chase Bank N.A., effective au 30 mai 2025. Cette résiliation concerne les actions de dépôt américaines (ADS) et les certificats de dépôt américains (ADR) de la société.
Le 30 avril 2025, JPMorgan informera tous les détenteurs d’ADR de la fin de ce dispositif. À la date d’effet, les ADS seront automatiquement annulées par un échange obligatoire, où les détenteurs recevront une action ordinaire (valeur nominale de 0,04 $) pour chaque ADS annulée.
AirNet Technology Inc. (Nasdaq: ANTE) hat die Beendigung seines geänderten und neu gefassten Hinterlegungsvertrags mit JPMorgan Chase Bank N.A. zum 30. Mai 2025 bekannt gegeben. Die Beendigung betrifft die amerikanischen Hinterlegungsscheine (ADS) und American Depositary Receipts (ADR) des Unternehmens.
Am 30. April 2025 wird JPMorgan alle ADR-Inhaber über die Beendigung der Vereinbarung informieren. Zum Wirksamkeitsdatum werden die ADS automatisch durch einen verpflichtenden Umtausch storniert, bei dem die Inhaber für jede stornierte ADS eine Stammaktie (Nennwert 0,04 USD) erhalten.
- Cost savings from terminating ADR program and associated administrative expenses
- Termination of ADS program could reduce stock liquidity and accessibility for US investors
- Potential delisting risk from Nasdaq due to ADR program termination
Insights
AirNet's ADR termination forces conversion to ordinary shares, likely reducing US market accessibility and liquidity for investors.
AirNet's decision to terminate its Deposit Agreement represents a significant structural change for investors holding the company's American Depositary Shares (ADSs). When this termination takes effect on May 30, 2025, all ADS holders will have their securities automatically cancelled and converted to ordinary shares at a 1:1 ratio through a mandatory exchange.
This forced conversion eliminates investor choice and typically creates several challenges:
- Ordinary shares are generally less liquid in US markets compared to ADSs
- US investors often face higher custody fees and more complex settlement processes when holding foreign ordinary shares
- Trading these ordinary shares typically requires specialized brokers with access to foreign markets or OTC venues
The relatively short timeline—approximately 30 days from announcement to implementation—gives investors time to adjust their positions. While AirNet hasn't stated its rationale, companies typically terminate ADR programs when they determine that maintaining US market presence no longer justifies the regulatory burden and associated costs.
This development significantly changes the investment structure for current shareholders and typically leads to reduced trading accessibility in US markets. The mandatory nature of the conversion, combined with the likelihood of decreased liquidity, represents a meaningful change to the company's capital market structure that investors should carefully consider.
BEIJING, April 28, 2025 (GLOBE NEWSWIRE) -- AirNet Technology Inc. ("AirNet" or the "Company") (Nasdaq: ANTE), today announced that it will terminate the amended and restated Deposit Agreement dated March 29, 2019, among the Company, JPMorgan Chase Bank N.A. (the “Depositary”), and the holders of American depositary shares (the “ADSs”) from time to time, effective May 30, 2025.
On or about April 30, 2025, the Depositary of the Company’s American depositary receipts (the “ADRs”), will distribute to all holders and beneficial owners of the Company’s ADRs a notification regarding the termination of ADR facility for the Company’s ADSs pursuant to the Deposit Agreement. The effective date of the termination of the Deposit Agreement will be May 30, 2025 (the “Effective Date”). On the Effective Date, holders of ADSs will have their ADSs automatically cancelled and would be entitled to receive the corresponding underlying Deposited Securities (the “Mandatory Exchange”) at a rate of one (1) ordinary share, par value
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 guarantee of future performance and involve risks and uncertainties that may cause the 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 goals and strategies; the Company's future business development; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; changes in applicable laws or regulations; as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by the Company. 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 U.S. Securities and Exchange Commission, 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 unless required by applicable laws, regulations or rules.
Company Contact
Penny Pei
Investor Relations
AirNet Technology Inc.
Tel: +86-10-8460-8678
Email: penny@ihangmei.com
