Scage Future Announces Plan to Implement ADS Ratio Change
The planned ADS ratio change will leave underlying ordinary shares unchanged, with none issued or cancelled.
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Rhea-AI Summary
Scage Future (SCAG) plans a one-for-fifteen reverse ADS split, expected to take effect on or about October 30, 2026.
The ratio of American Depositary Shares (ADSs) to ordinary shares would change from one ADS per ordinary share to one ADS per fifteen ordinary shares. Holders would automatically receive one new ADS for every fifteen existing ADSs, with no action required. The ADSs will continue trading on the Nasdaq Capital Market under SCAG. The company expects the ADS trading price to increase proportionally, but does not assure a price equal to or greater than fifteen times the pre-change price.
News Explained
Fractional ADS entitlements will be sold and paid out as net cash rather than issued as partial ADSs.
Scage Future has announced a planned ADS-ratio change; no ordinary shares will be issued or cancelled, so the underlying ordinary-share count remains unchanged.
Fractional new ADS entitlements will be combined and sold by the depositary bank, with net proceeds after fees, taxes and expenses distributed to the applicable holders.
Key Figures
- ADS ratio
- 1 ADS:1 ordinary share to 1 ADS:15 ordinary shares
- Planned ADS Ratio Change
- Expected effective date
- On or about October 30, 2026
- Planned ADS Ratio Change
Historical Context
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Nasdaq cited minimum-bid-price noncompliance; Scage said it might consider a reverse share split.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
reverse ads split financial
cusip financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
For Scage Future's ADS holders, the change in the ADS Ratio will have the same effect as a one-for-fifteen reverse ADS split. On the Effective Date, holders of ADSs as of the Effective Date will be entitled to receive one (1) new ADS for every fifteen (15) existing ADSs then held, and the exchange will occur automatically, with the then-held ADSs being cancelled and new ADSs being issued by Citibank, N.A., as the depositary bank for the Company's ADS program ("Depositary Bank"). Holders of ADSs will not be required to take any action in connection with the ADS Ratio Change.
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 change in the ADS Ratio will have no impact on Scage Future's underlying ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio. Scage Future's ADSs will continue to be traded on the Nasdaq Capital Market under the symbol "SCAG." In connection with the ADS Ratio Change, the CUSIP number for the ADSs will also change from 80590A105 to a new CUSIP number to be announced.
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 fifteen times the ADS trading price before the change.
About Scage Future
Scage Future is a leading zero-emission technology provider in China, dedicated to decarbonizing global commercial transportation through its portfolio of advanced heavy-duty NEV trucks and innovative e-fuel systems. Through strategic partnerships with top-tier vehicle manufacturers and a strong quality control framework, the Company delivers intelligent, high-performance NEVs addressing the transport needs across logistics, mining and port operations. The Company has a proven track record in the design, production, and testing of next-generation heavy-duty NEVs, including the Dragon II plug-in hybrid dump truck, Galaxy II plug-in hybrid truck, and Q-Truck autonomous tractor trailer.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the timing and completion of the ADS Ratio Change, the expected Effective Date of the ADS Ratio Change, the anticipated effects of the ADS Ratio Change on the trading price of the Company's ADSs, and the Company's expectations regarding the treatment of fractional ADS entitlements and the exchange of existing ADSs for new ADSs. 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 identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or 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 registration statement and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Scage Future
Investor Relations
Emily Wang
Head of Investor Relations
Email: scageIR@scagefd.com
View original content:https://www.prnewswire.com/news-releases/scage-future-announces-plan-to-implement-ads-ratio-change-302900433.html
SOURCE Scage Future
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When is Scage Future's reverse ADS split expected, and what is the ratio?
Scage Future expects the one-for-fifteen reverse ADS split to take effect on or about October 30, 2026. The ADS ratio would change from one ADS representing one ordinary share to one ADS representing fifteen ordinary shares.
How will Scage Future ADS holders receive replacement ADSs and fractional entitlements?
Holders need take no action: Citibank, N.A., the depositary bank, will automatically cancel existing ADSs and issue replacement ADSs. No fractional new ADSs will be issued. Fractional entitlements will be aggregated and sold, with net cash proceeds distributed to applicable holders after deduction of fees, taxes and expenses.