Token Cat Limited Announces Announces Planned ADS Ratio Change
Rhea-AI Summary
Token Cat (NASDAQ: TC), a leading Chinese automotive marketplace, has announced plans to implement a 1-for-20 reverse ADS split effective August 29, 2025. The ratio of American depositary shares (ADSs) will change from 1 ADS representing 240 Class A ordinary shares to 1 ADS representing 4,800 Class A ordinary shares.
The exchange will occur automatically for ADS holders in The Depository Trust Company and Direct Registration System. Fractional ADSs will be aggregated, sold by the depositary bank, and the net proceeds distributed to applicable holders. The company's Class A ordinary shares remain unchanged, and TC will continue trading on the Nasdaq Capital Market under the same symbol.
Positive
- None.
Negative
- The 1-for-20 reverse ADS split could be indicative of efforts to maintain Nasdaq listing requirements
- No assurance provided that the ADS price will maintain proportional value after the ratio change
News Market Reaction
On the day this news was published, TC gained 16.70%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.7% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $23M at that time.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Token Cat Limited ("Token Cat" or the "Company") (NASDAQ: TC), a leading automotive marketplace in China, today announced that it plans to change the ratio of its American depositary shares ("ADSs") from one (1) ADS representing two hundred and forty (240) Class A ordinary shares to one (1) ADS representing four thousand eight hundred (4800) Class A ordinary shares (the “ADS Ratio Change”). The Company anticipates that the ADS Ratio Change will be effective on or about August 29, 2025 (the “Effective Date”).
For the Company’s ADS holders, the ADS Ratio Change will have the same effect as a one-for-twenty reverse ADS split. On the Effective Date, holders of ADSs in The Depository Trust Company and Direct Registration System will have their ADSs automatically exchanged and need not take any action. The exchange of every twenty then-held (existing) ADSs for one (1) new ADS will occur automatically at the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank.
No fractional new ADSs will be issued in connection with the ADS Ratio Change. 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.
There will be no change to the Company's Class A ordinary shares. As of the Effective Date, TC’s ADSs will continue to be traded on the Nasdaq Capital Market under the symbol "TC".
As a result of the ADS Ratio Change, the ADS price is expected to increase proportionally, although the Company can give no assurance that the ADS price after the ADS Ratio Change will be equal to or greater than the ADS price on a proportionate basis.
About Token Cat Limited
Founded in 2010, Token Cat Limited, formerly known as TuanChe Limited (NASDAQ: TC), is China's leading automotive marketplace platform. Token Cat is dedicated to connecting automotive consumers with manufacturers, dealers, and service providers. By integrating its digital platforms with offline sales events, Token Cat offers comprehensive automotive marketing and transaction services. Through its integrated marketing strategies, Token Cat transforms individual and independent car purchases into large-scale group buying experiences, using an interactive many-to-many model. Furthermore, leveraging its proprietary data analytics and advanced digital marketing system, Token Cat's online marketing service platform helps industry customers increase the efficiency and effectiveness of their advertising placements. Token Cat is currently exploring ways to enter into the cryptocurrency sector.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's business plans and development, business outlook, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
For media inquiries, please contact:
Lydia Hu
SOURCE Token Cat Limited
FAQ
What is Token Cat's (TC) new ADS ratio after the August 2025 change?
How will the Token Cat (TC) ADS ratio change affect existing shareholders?
When will Token Cat's (NASDAQ:TC) ADS ratio change take effect?
Do Token Cat (TC) shareholders need to take any action for the ADS ratio change?
Will Token Cat's (TC) stock symbol change after the ADS ratio adjustment?
