Dunxin Financial Holdings Limited Announces Planned ADS Ratio Change

Rhea-AI Summary

Dunxin Financial Holdings Limited plans to change the ratio of its American depositary shares (ADSs) from 1 ADS representing 48 ordinary shares to 1 ADS representing 480 ordinary shares. The change is expected to take place on July 25, 2023, and will result in an expected increase in the ADS price. Fractional new ADSs will not be issued, and the net cash proceeds from the sale of fractional ADS entitlements will be distributed to applicable ADS holders.

Positive

• The change in the ADS ratio is expected to increase the ADS price proportionally.
• Fractional new ADSs will not be issued, and the net cash proceeds from the sale of fractional ADS entitlements will be distributed to applicable ADS holders.

Negative

• None.

WUHAN, China, July 15, 2023 /PRNewswire/ -- Dunxin Financial Holdings Limited ("Dunxin" or the "Company") (NYSE American: DXF), a licensed microfinance lender servicing individuals and small and medium enterprises ("SMEs") in Hubei Province, China, today announced that it plans to change the ratio of its American depositary shares ("ADSs") from one (1) ADS representing forty eight (48) ordinary shares to one (1) ADS representing four hundred and eighty (480) ordinary shares.

There will be no change to the Company's ordinary shares. The effect of the ratio change on the ADS trading price on the NYSE American (the "NYSE American") is expected to take place at the open of trading on July 25, 2023 (U.S. Eastern Time). ADS holders of record on the effective date will need to surrender their ADS to the depositary bank for cancellation and exchange in connection with the ADS ratio change, with further details to be provided in the notice by the depositary bank. As of the effective date for the ADS ratio change, DXF's ADSs will continue to be traded on the NYSE American under the symbol "DXF".

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 bank 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 bank.

As a result of the change in the ADS ratio, the ADS price is expected to increase proportionally, although the Company can give no assurance that the ADS price after the change in the ADS ratio will be equal to or greater than the ADS price on a  proportionate basis.

About Dunxin Financial Holdings Limited

Dunxin is a licensed microfinance lender serving individuals and SMEs in Hubei Province, China. Dunxin suspended offering loans to its customers since 2020.

Safe Harbor Statement

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 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; product and service demand and acceptance; changes in technology; economic conditions; the growth of market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the 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, 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.

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SOURCE Dunxin Financial Holding Limited

FAQ

What is the ratio change for Dunxin Financial Holdings Limited's ADSs?

The ratio of Dunxin Financial Holdings Limited's ADSs will change from 1 ADS representing 48 ordinary shares to 1 ADS representing 480 ordinary shares.

When will the change in the ADS ratio take place?

The change in the ADS ratio is expected to take place on July 25, 2023.

What will happen to fractional new ADSs?

Fractional new ADSs will not be issued. Fractional entitlements to new ADSs will be aggregated and sold by the depositary bank, and the net cash proceeds will be distributed to applicable ADS holders.

Will the ADS price increase after the change in the ADS ratio?

The ADS price is expected to increase proportionally after the change in the ADS ratio, although there is no assurance that it will be equal to or greater than the ADS price on a proportionate basis.