BEIJING, Dec. 11, 2019 /PRNewswire/ -- Renren Inc. (NYSE:
RENN) ("Renren" or the "Company"), which operates a leading premium
used auto business in China
through its subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) as well
as several U.S.-based SaaS businesses, 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$0.001 per share, from the
current ADS Ratio of one (1) ADS to fifteen (15) Class A ordinary
shares to a new ADS Ratio of one (1) ADS to forty-five (45) Class A
ordinary shares. The Company will file a post-effective amendment
to the ADS 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
January 9, 2020, subject to the SEC
having declared the post-effective amendment to the ADS
Registration Statement on 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-three reverse ADS split. Each ADS
holder of record at the close of business on the date when the
change in ADS Ratio is effective will be required to surrender and
exchange every three (3) existing 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 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 three times the
ADS trading price before the change. As previously announced on
August 2, 2019, the Company received
a letter of non-compliance from the New York Stock Exchange dated
July 30, 2019, regarding its ADS
trading price. 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.
However, the Company can give no assurance that this goal will be
achieved.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading premium used
auto business in China through its
subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) as well as several
US-based SaaS business. Renren's ADSs, each currently
represents fifteen (15) Class A ordinary shares of the Company, are
traded 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. 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. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement 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.