BEIJING - Jianzhi Education Technology Group Company Limited (NASDAQ: JZ), a prominent digital educational content provider in China, has announced a change in its American Depositary Shares (ADS) structure. The company disclosed that the ratio of its ADSs would be adjusted from one ADS representing two ordinary shares to one ADS representing six ordinary shares. This alteration, essentially a one-for-three reverse ADS split, is expected to take effect around February 20, 2024.
For holders of Jianzhi's ADSs, this means that every three existing ADSs will be exchanged for one new ADS after the close of business on the effective date. The Bank of New York Mellon (NYSE:BK), acting as the depositary bank for Jianzhi's ADSs, will manage the exchange process. In cases where holders are entitled to fractional new ADSs, these will be sold in aggregate, and the net cash proceeds, after relevant deductions, will be distributed to the holders by the depositary bank.
The company has stated that the ADS Ratio Change will not impact Jianzhi's underlying ordinary shares, with no issuance or cancellation of ordinary shares in connection with the change. While the adjustment is anticipated to proportionally increase the trading price of Jianzhi's ADSs on the Nasdaq Stock Exchange, the company has indicated that there is no guarantee that the post-change trading price will be equal to or greater than three times the pre-change price.
Founded in 2011 and headquartered in Beijing, Jianzhi has established itself as a key player in China's digital education sector, offering a range of professional development products and services. The company's diverse digital educational content database serves both institutional and individual customers, facilitated by its online learning platforms and omni-channel sales system.
This move comes as part of Jianzhi's ongoing commitment to the digitalization and informatization of education in China. The information regarding the ADS Ratio Change is based on a press release statement from Jianzhi Education Technology Group Company Limited.
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