17 Education & Technology Group Inc. Announces Plan to Implement ADS Ratio Change
December 12 2023 - 6:00PM
17 Education & Technology Group Inc. (Nasdaq: YQ) (“17EdTech”
or the “Company”), a leading education technology company in China,
today announced that it plans to change the ratio of its American
Depositary Shares (“ADSs”) to its Class A ordinary shares (the “ADS
Ratio”), par value US$0.0001 per share, from the current ADS Ratio
of one (1) ADS to ten (10) Class A ordinary shares to a new ADS
Ratio of one (1) ADS to fifty (50) Class A ordinary shares,
effective on or about December 18, 2023, U.S. Eastern Time (the
“Effective Date”).
For 17EdTech’s ADS holders, the change in the ADS Ratio will
have the same effect as a one-for-five reverse ADS split. On the
Effective Date, holders of the ADSs will be required to surrender
and exchange every five (5) ADSs then held for one
(1) new ADS. The Bank of New York Mellon, as the depositary
bank for 17EdTech’s ADS program, will arrange for the exchange.
17EdTech’s ADSs will continue to be traded on the Nasdaq Global
Select Market under the symbol “YQ.”
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
17EdTech’s underlying Class A ordinary shares, and no Class A
ordinary shares will be issued or cancelled in connection with the
change in the ADS Ratio.
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 five
times the ADS trading price before the change.
About 17 Education & Technology Group
Inc.
17 Education & Technology Group Inc. is a
leading education technology company in China, offering smart
in-school classroom solution that delivers data-driven teaching,
learning and assessment products to teachers, students and parents.
Leveraging its extensive knowledge and expertise obtained from
in-school business over the past decade, the Company provides
teaching and learning SaaS offerings to facilitate the digital
transformation and upgrade at Chinese schools, with a focus on
improving the efficiency and effectiveness of core teaching and
learning scenarios such as homework assignments and in-class
teaching. The product utilizes the Company’s technology and data
insights to provide personalized and targeted learning and exercise
content that is aimed at improving students’ learning
efficiency.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the United States 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. Statements that are not historical facts, including
statements about 17EdTech’s beliefs and expectations, are
forward-looking statements. 17EdTech may also make written or oral
forward-looking statements in its periodic reports to the 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. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: 17EdTech’s growth strategies; its future business
development, financial condition and results of operations; its
ability to continue to attract and retain users; its ability to
carry out its business and organization transformation, its ability
to implement and grow its new business initiatives; the trends in,
and size of, China’s online education market; competition in and
relevant government policies and regulations relating to China's
online education market; its expectations regarding demand for, and
market acceptance of, its products and services; its expectations
regarding its relationships with business partners; general
economic and business conditions; and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in 17EdTech’s filings with the
SEC. All information provided in this press release is as of the
date of this press release, and 17EdTech does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please
contact:
17 Education & Technology Group Inc.
Ms Lara ZhaoInvestor Relations ManagerE-mail:
ir@17zuoye.com
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