POMDOCTOR LIMITED Announces Plan to Implement ADS Ratio Change

POMDOCTOR (NASDAQ:POM) plans an ADS ratio change, effective on or about June 22, 2026, subject to SEC effectiveness of a post-effective amendment to Form F‑6.

Rhea-AI Summary

POMDOCTOR (NASDAQ:POM) plans an ADS ratio change, effective on or about June 22, 2026, subject to SEC effectiveness of a post-effective amendment to Form F‑6.

The ratio will change from 1 ADS = 1/6 Class A share to 1 ADS = 3 Class A shares, effectively a 1‑for‑18 reverse ADS split, with no impact on total Class A ordinary shares.

Positive

• Reverse ADS split consolidates every 18 existing ADSs into 1 new ADS
• ADS trading price is expected to increase proportionately after the ratio change
• ADSs remain listed on Nasdaq under ticker symbol POM
• No Class A ordinary shares will be issued or cancelled in the ADS Ratio Change

Negative

• ADS holders receive 1 new ADS for every 18 existing ADSs, reducing ADS count
• Fractional ADS entitlements will be sold for cash, less fees, taxes and expenses
• Company gives no assurance ADS price will equal eighteen times prior trading price

Argus May 28 session

-8.22% close to close Open Argus

Details

News Market Reaction – POM

In the May 28 session, POM declined 8.22%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.2% in the session following this news. A negative reaction despite the ADS consol...

Analysis

The stock moved -8.2% in the session following this news. A negative reaction despite the ADS consolidation would fit a market focus on underlying fundamentals rather than cosmetic price changes. Before this announcement, POM traded at 0.1156, far below its 1.21 200-day MA and 6.43 52-week high, amid widening losses and going-concern risk disclosed in recent filings. Past news often produced divergent price responses, suggesting sentiment was already fragile.

Key Figures

Current ADS ratio: 1 ADS = 1/6 Class A ordinary share New ADS ratio: 1 ADS = 3 Class A ordinary shares Reverse ADS split effect: 1 new ADS for every 18 existing ADSs +2 more

Current ADS ratio

1 ADS = 1/6 Class A ordinary share

Existing ADS program structure before ratio change

New ADS ratio

1 ADS = 3 Class A ordinary shares

Planned ADS Ratio Change

Reverse ADS split effect

1 new ADS for every 18 existing ADSs

Economic effect on ADS holders

Effective date

On or about June 22, 2026

Anticipated effectiveness of ADS Ratio Change

Deposit agreement date

October 9, 2025

Deposit agreement to be amended for ratio change

Historical Context

5 past events · Latest: May 14

5 events

1. May 14

   Full-year earnings

   24h Move

   -3.3%

   Revenue growth overshadowed by sharply higher net loss and cash burn.

2. Mar 13

   Strategy update

   24h Move

   +3.3%

   Strategic shift toward AI and medical-grade wearables for chronic care.

3. Feb 04

   Platform expansion

   24h Move

   -1.5%

   Expanded integration with online medical insurance across Chinese cities.

4. Feb 02

   Nasdaq notice

   24h Move

   +5.2%

   Nasdaq deficiency letter for bid price below $1.00 minimum requirement.

5. Jan 16

   Partnerships expansion

   24h Move

   -1.7%

   New pharma partnerships to support internet hospital growth and profitability.

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

Key Terms

american depositary shares, ads ratio change, reverse ads split, form f-6, +4 more

8 terms

american depositary shares financial

"change the ratio of its American Depositary Shares ("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 change financial

"to its Class A ordinary shares (the "ADS Ratio Change")"

An ads ratio change is an adjustment to how many American Depositary Shares (ADS) represent one unit of a foreign company’s ordinary shares — like changing whether a cake is cut into 2 or 10 slices. Investors care because it alters the number of tradable ADS, the implied price per ADS and an investor’s ownership stake, which can affect liquidity, perceived value and comparisons of holdings across markets.

reverse ads split financial

"same effect as a one-for-eighteen 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.

form f-6 regulatory

"Registration Statement on Form F-6 will be filed"

Form F-6 is an SEC registration form used when a U.S. depositary bank creates American Depositary Receipts (ADRs), which are certificates that let U.S. investors buy and sell shares of a foreign company as if they were domestic stocks. Think of an ADR as a local-language label placed on a foreign product: it makes the foreign share easier to trade and settle in U.S. markets, increasing accessibility, liquidity and investor choice while bringing certain U.S. disclosure and regulatory oversight.

direct registration system technical

"holders of ADSs in the Direct Registration System ("DRS")"

A direct registration system allows investors to register their ownership of securities directly with the issuing company or its transfer agent, rather than holding shares through a broker or intermediary. This setup gives investors more control over their holdings and simplifies the process of buying or selling shares. It is important because it can reduce costs, increase transparency, and provide a clearer record of ownership.

the depository trust company technical

"holders of ADSs in the Direct Registration System ("DRS") and in The Depository Trust Company"

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 the depositary bank"

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.

deposit agreement financial

"agreed to amend the deposit agreement, dated as of October 9, 2025"

A deposit agreement is a written contract between a customer and a financial institution that outlines the terms for opening and maintaining a deposit account, such as a savings or checking account. It explains important details like how funds can be accessed, any fees involved, and the institution’s responsibilities. For investors, understanding this agreement is important because it clarifies their rights and the rules governing their deposited funds.

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GUANGZHOU, China, May 28, 2026 /PRNewswire/ -- POMDOCTOR LIMITED (the "Company") (NASDAQ: POM), a leading online medical services platform for chronic diseases in China, today announced that it plans to change the ratio of its American Depositary Shares ("ADSs") to its Class A ordinary shares (the "ADS Ratio Change"), from the current ratio of one (1) ADS representing one-sixth (1/6) Class A ordinary share to a new ratio of one (1) ADS representing three (3) Class A ordinary shares.

For the Company's ADS holders, the ADS Ratio Change will have the same effect as a one-for-eighteen reverse ADS split. A post-effective amendment to the ADS Registration Statement on Form F-6 will be filed with the U.S. Securities and Exchange Commission to reflect the ADS Ratio Change. The Company anticipates that the ADS Ratio Change will be effective on or about June 22, 2026, U.S. Eastern Time (the "Effective Date"), subject to the effectiveness of the post-effective amendment to the ADS Registration Statement on Form F-6 on or before that date.

On the Effective Date, holders of ADSs in the Direct Registration System ("DRS") and in The Depository Trust Company ("DTC") will have their ADSs automatically exchanged and need not take any action. The exchange of every eighteen (18) then-held (existing) ADSs for one (1) new ADS will occur automatically, on the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank. Citibank, N.A., as the depositary bank for the Company's ADS program, will arrange for the exchange. The Company's ADSs will continue to be traded on the Nasdaq Stock Market under the ticker symbol "POM."

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. The ADS Ratio Change will have no impact on the Company's underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled in connection with the ADS Ratio Change.

As a result of the ADS Ratio Change, the trading price of the Company's ADSs is expected to increase proportionately upon the effectiveness of the ADS Ratio Change, although the Company can give no assurance that the ADS trading price after the ADS Ratio Change will be equal to or greater than eighteen times the ADS trading price before the change.

The depositary bank and the Company have also agreed to amend the deposit agreement, dated as of October 9, 2025, in order to reflect the ADS Ratio Change.

About POMDOCTOR LIMITED

POMDOCTOR LIMITED is a leading online medical services platform for chronic diseases in China, ranking sixth on China's Internet hospital market based on the number of contracted doctors in 2022, according to Frost & Sullivan. Focusing on chronic disease management and pharmaceutical services, the Company offers a one-stop platform for medical services, organically connecting patients with doctors and pharmaceutical products. The Company's operations primarily include Internet hospital and pharmaceutical supply chain, connecting users, pharmacies, suppliers, medical professionals, and other healthcare participants. Through this model, POMDOCTOR aims to enhance the efficiency and transparency of the healthcare value chain. The Company's mission is to provide effective prevention and treatment solutions to alleviate patients' sufferings from illnesses. Its vision is to become the most trustworthy medical and healthcare services platform. For more information, please visit the Company's website: http://ir.7shiliu.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the SEC.

For more information, please contact:

POMDOCTOR LIMITED
Investor Relations Department
Email: ir@7lk.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

View original content:https://www.prnewswire.com/news-releases/pomdoctor-limited-announces-plan-to-implement-ads-ratio-change-302783087.html

SOURCE POMDOCTOR LIMITED

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What ADS ratio change did POMDOCTOR (NASDAQ:POM) announce for June 2026?

POMDOCTOR plans to change its ADS ratio so that 1 ADS will represent 3 Class A ordinary shares. Previously, 1 ADS represented one‑sixth of a Class A share, making this equivalent to a 1‑for‑18 reverse ADS split for existing ADS holders.

When will the POMDOCTOR (POM) ADS ratio change and reverse ADS split take effect?

The ADS ratio change is expected to become effective on or about June 22, 2026, U.S. Eastern Time. According to the company, timing depends on the post‑effective amendment to Form F‑6 becoming effective with the SEC on or before that date.

How will the POMDOCTOR ADS ratio change affect existing POM ADS holders?

On the effective date, every 18 existing POM ADSs will be automatically exchanged for 1 new ADS. Holders in DRS and DTC do not need to take action, as Citibank, the depositary bank, will manage cancellation of old ADSs and issuance of new ADSs.

Will POMDOCTOR issue or cancel Class A ordinary shares in the ADS ratio change?

The ADS ratio change will not affect the number of POMDOCTOR Class A ordinary shares. According to the company, no Class A ordinary shares will be issued or cancelled; only the ADS-to-share ratio and number of ADSs outstanding will change.

What happens to fractional ADSs in the POMDOCTOR (POM) reverse ADS split?

No fractional new ADSs will be issued in the POMDOCTOR ratio change. Instead, fractional ADS entitlements will be aggregated and sold by the depositary bank, with net cash proceeds, after fees, taxes and expenses, distributed to the relevant ADS holders.

How could the POMDOCTOR ADS ratio change impact the POM trading price?

The ADS trading price is expected to increase proportionately after the 1‑for‑18 reverse ADS split. According to the company, there is no assurance the post‑change ADS price will equal or exceed eighteen times the pre‑change ADS trading price.