BEIJING, Oct. 4, 2022
/PRNewswire/ -- Gravitas Education Holdings, Inc. (NYSE: GEHI)
("GEHI" or the "Company"), a leading early childhood education
service provider in China, today
announced that it will change the ratio of its American Depositary
Shares ("ADS(s)") to Class A ordinary shares ("Share(s)") from one
(1) ADS representing one (1) Share to one (1) ADS
representing twenty (20) Shares, effective October [14],
2022 (the "ADS Ratio Change").
For the Company's ADS holders, the change in the ADS ratio will
have the same effect as a one-for-twenty reverse ADS split.
Effective October 14, 2022,
registered holders of ADS of the Company will be required on a
mandatory basis to surrender their old ADSs to the depositary bank
for cancellation and will receive one (1) new ADS in exchange for
every twenty (20) old ADSs then-held. Holders in the Direct
Registration System and in the Depository Trust Company will have
their ADSs automatically exchanged and need not take any action. No
fractional new ADSs will be issued in connection with the ADS Ratio
Change. 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 ADS Ratio
Change will have no impact on the Company's underlying ordinary
shares.
About Gravitas Education Holdings, Inc.
Founded on the core values of "Care" and "Responsibility,"
"Inspire" and "Innovate," Gravitas Education Holdings, Inc.
(formerly known as RYB Education, Inc.) is a leading early
childhood education service provider in China. Since opening its first play-and-learn
center in 1998, the Company has grown and flourished with the
mission to provide high-quality, individualized and age-appropriate
care and education to nurture and inspire each child for his or her
betterment in life. During its two decades of operating history,
the Company has built itself into a well-recognized education brand
and helped bring about many new educational practices in
China's early childhood education
industry. GEHI's comprehensive early childhood education solutions
meet the needs of children from infancy to 6 years old through
structured courses at kindergartens and play-and-learn centers, as
well as at-home educational products and services.
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," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company'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, including but not limited to the following: the
Company's brand recognition and market reputation; student
enrollment in the Company's teaching facilities; the Company's
growth strategies; its future business development, results of
operations and financial condition; trends and competition
in China's early childhood education market; changes in
its revenues and certain cost or expense items; the expected growth
of the Chinese early childhood education market; Chinese
governmental policies relating to the Company's industry and
general economic conditions in China. Further information
regarding these and other risks is included in the Company's
filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and the Company undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
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SOURCE Gravitas Education Holdings Inc.