On December 6th, customer interaction and marketing technology service provider Aurora announced the effective date for updating its American Depositary Stock (ADS) ratio change. On November 30, 2023, Aurora announced plans to change the ratio of its ADS to Class A common shares (face value $0.0001 per share) from 3 ADSs representing 2 Class A common shares to 3 ADSs representing 40 Class A common shares on or around December 6, 2023. The effective date of this plan has been updated to December 11, 2023 Eastern Time in the United States.
For aurora ADS holders, the change in ADS ratio will have the same splitting effect as the 1:20 reverse ADS. This change will not have an impact on Aurora's Class A common stock, and the company will not issue or cancel any Class A common stock due to the change in ADS ratio. On the effective date, every 20 shares of ADS held by ADS holders will be automatically exchanged for 1 new ADS. The Bank of New York Mellon, as the depositary bank for the company's ADS program, will arrange relevant exchange matters. Aurora ADS will continue to trade on the NASDAQ Capital Market, with the stock code "JG".
The company will not issue ADS shares (i.e. ADSs with less than 1 share) due to changes in the ADS ratio. Instead, the shares will be merged and sold by the depositary bank, and the net cash proceeds (after deducting relevant fees and taxes) will be distributed by the depositary bank to applicable ADS holders.
Due to the change in ADS ratio, the trading price of ADS is expected to increase proportionally, but the company cannot guarantee that the price after the change in ADS ratio will be equal to or greater than 20 times the pre change ADS price.