BEIJING, Jan. 6, 2017 /PRNewswire/ -- Renren Inc. (NYSE:
RENN) ("Renren" or the "Company"), a leading real-name social
networking internet platform in China, today announced that it plans to change
the ratio of its American Depositary Shares ("ADSs") to its Class A
ordinary shares, par value US$0.001
per share, from the current ratio of one (1) ADS to three (3) Class
A ordinary shares to a new ratio of one (1) ADS to fifteen (15)
Class A ordinary shares. The Company will file an amendment to its
Registration Statement on Form F-6 with the SEC to reflect the
change in the ADS ratio. The Company anticipates that the change in
the ADS ratio will be effective on or about February 6, 2017, subject to the SEC having
declared the amended Form F-6 to be effective on or before that
date.
For Renren's ADS holders, the change in the ADS ratio will have
the same effect as a one-for-five reverse ADS split. Each ADS
holder of record at the close of business on the date when the
change in ratio is effective will be required to exchange every
five (5) ADSs then held for one (1) new ADS. Citibank, N.A., as the
depositary bank for Renren's ADS program, will arrange for the
exchange of the current ADSs for the new ones. Renren's ADSs will
continue to be traded on the New York Stock Exchange under the
symbol "RENN".
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 distributed to
the applicable ADS holders by the depositary bank. The change in
the ADS ratio will have no impact on Renren's underlying Class A
ordinary shares, and no new Class A ordinary shares will be issued
in connection with the change in the ADS ratio.
As a result of the change in the ADS ratio, the ADS price is
expected to increase proportionally, although the Company can give
no assurance that the ADS price after the change in the ADS ratio
will be equal to or greater than five times the ADS price before
the change. The Company believes that the change in the ADS ratio
will help the Company to maintain compliance with the continued
listing requirements of the New York Stock Exchange after the
Company carries out the proposed distribution of rights that the
Company previously announced on September
30, 2016. However, the Company can give no assurance that
this goal will be achieved.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading real name social
networking service (SNS) and an internet finance business in
China. Our SNS enables users to
connect and communicate with each other, share photos and access
mobile live streaming. Our internet finance business includes
primarily consumer financing and auto financing. Renren.com and our
renren mobile application had approximately 238 million activated
users as of September 30, 2016.
Renren's American depositary shares, each of which currently
represents three Class A ordinary shares, trade on NYSE under the
symbol "RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Renren may also
make written or oral forward-looking statements in its filings with
the U.S. Securities and Exchange Commission ("SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Renren's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the SEC.
All information provided in this press release is as of the date of
this press release, and Renren does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
For more information, please contact:
Cynthia Liu
Investor Relations Department
Renren Inc.
Tel: (86 10) 8448 1818 ext. 1300
Email: ir@renren-inc.com
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SOURCE Renren Inc.