NaaS Technology Inc. Announces Completion of ADS Ratio Change

Rhea-AI Summary

NaaS Technology announced that the change in the ratio of its American depositary shares (ADSs) to its Class A ordinary shares has become effective as of June 13, 2024. The ratio adjustment from one ADS to ten Class A ordinary shares to one ADS to 200 Class A ordinary shares acts as a one-for-twenty reverse ADS split. This change was implemented automatically, with new ADSs issued and old ones cancelled by JPMorgan Chase Bank. Additionally, NaaS received a notice from Nasdaq indicating that its ADS closing bid price fell below the $1.00 minimum for 30 consecutive business days. The company anticipates that the new ADS ratio will boost the trading price, helping to meet Nasdaq's compliance requirements within a 180-day period.

Positive

• The ADS ratio change acts as a one-for-twenty reverse ADS split, potentially increasing the trading price.
• Implementation was automatic and handled by JPMorgan Chase Bank, ensuring a smooth transition.
• NaaS expects to regain compliance with Nasdaq's minimum bid price requirement within the 180-day compliance period.

Negative

• NaaS received a notice from Nasdaq stating its ADS closing bid price was below the $1.00 minimum for 30 consecutive business days.
• There is no assurance that the ADS ratio change will lead to sustained compliance with Nasdaq's minimum bid price requirement.

News Market Reaction

-19.18%

1 alert

-19.18% News Effect

On the day this news was published, NAAS declined 19.18%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BEIJING, June 13, 2024 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NaaS) ("NaaS" or the Company"), the first U.S. listed EV charging service company in China, today announces that the previously announced change of the ratio (the "ADS Ratio") of its American depositary shares (the "ADSs") to its Class A ordinary shares has taken effect at the open of business on June 13, 2024 (U.S. Eastern Time).

The change in the ADS Ratio, from one ADS to ten Class A ordinary shares to one ADS to 200 Class A ordinary shares, had the same effect as a one-for-twenty reverse ADS split. The exchange of one new ADS for every 20 previously-held ADSs occurred automatically upon effectiveness, with the previously-held ADSs cancelled and the new ADSs issued by JPMorgan Chase Bank, N.A., the depositary bank for the Company's ADS program.

The Company also announces that it has received a letter from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") dated June 13, 2024, indicating that for the last 30 consecutive business days, the closing bid price for the ADSs was below the minimum bid price of US$1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). As a result of the change in the ADS Ratio, the ADS trading price is expected to increase proportionally and the Company expects to regain compliance with the minimum bid price requirement within the 180-calendar-day compliance period prescribed under Nasdaq Listing Rule 5810(c)(3)(A), although the Company can give no assurance in this regard.

About NaaS Technology Inc.

NaaS Technology Inc. is the first U.S. listed EV charging service company in China. The Company is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. The Company provides one-stop solutions to energy asset owners comprising charging services, energy solutions and new initiatives, supporting every stage of energy asset's lifecycle and facilitating energy transition.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com 

Media inquiries:
E-mail: pr@enaas.com

View original content:https://www.prnewswire.com/news-releases/naas-technology-inc-announces-completion-of-ads-ratio-change-302172202.html

SOURCE NaaS Technology Inc.

FAQ

What change did NaaS Technology announce regarding its ADS ratio?

NaaS Technology changed the ratio of its ADSs to Class A ordinary shares from one ADS to ten ordinary shares to one ADS to 200 ordinary shares.

When did the new ADS ratio for NaaS Technology take effect?

The new ADS ratio took effect on June 13, 2024.

Why did NaaS Technology change its ADS ratio?

The change was aimed at increasing the ADS trading price, acting as a one-for-twenty reverse ADS split.

What was the Nasdaq compliance issue faced by NaaS Technology?

NaaS received a notice from Nasdaq indicating that its ADS closing bid price was below the $1.00 minimum for 30 consecutive business days.

How does NaaS Technology expect the ADS ratio change to impact compliance with Nasdaq requirements?

NaaS expects the new ADS ratio will increase the trading price, helping it regain compliance with Nasdaq's minimum bid price requirement within the 180-day compliance period.