#USA #Hong Kong #Dunxin Financial #OTC Pink #ADS Ratio Change

Dunxin Financial Holdings Announces ADS Ratio Change

On December 4, 2024, Dunxin Financial Holdings Limited (traded under the ticker DXFFY on OTC Pink), an investment and operational management firm based in Hong Kong, made a significant announcement regarding the adjustment of its American Depositary Shares (ADS) ratio. This change will alter the current structure where one ADS represents 480 Class A ordinary shares to a new ratio where one ADS will now represent 60,000 Class A shares. This change is set to take effect at the opening of markets on the same date.

Implications of the Ratio Change

For current ADS holders, this adjustment effectively mirrors a 1-for-125 reverse stock split. Importantly, it should be noted that there will be no alterations to the Class A ordinary shares themselves, maintaining their current structure despite the change in ADS ratio.

As per the outlined plan, registered ADS holders on the effective date will need to surrender their ADS to the depositary bank for cancellation and exchange in connection with this ratio adjustment. Further details will be provided by the depositary bank to ensure clarity for the investors involved. Post this adjustment, Dunxin’s ADSs will continue trading under the same ticker, DXFFY, within the OTC market, ensuring stability in its identity despite the structural changes.

The more significant consideration for investors is the potential increase in the share price of the ADS following the ratio change. Although it is anticipated that the ADS price will rise proportionally, the company clarifies that it does not guarantee that the ADS price after the adjustment will match or exceed the pre-adjustment price on a proportional basis. Investors are encouraged to remain cautious, considering the dynamic nature of market reactions.

No Issuance of Fractional ADS

Furthermore, the company has clarified that there will be no issuance of fractional ADS as a result of this ratio change. Instead, any fractional rights to new ADSs will be consolidated and sold by the depositary bank. The net cash proceeds gained from such sales (after taking into account any fees, taxes, and expenses incurred) will be distributed to the affected ADS holders, ensuring fair compensation for those holding fractions that do not amount to a full share.

About Dunxin Financial Holdings Limited

Dunxin Financial Holdings Limited has positioned itself as a microfinance lender licensed to serve individuals and small-to-medium enterprises in Hubei province, China. Notably, the company has refrained from providing new loans to clients since 2020, focusing instead on restructuring and stabilizing its operational frameworks amid challenging market conditions.

Dunxin’s ongoing commitment to enhancing corporate governance and transparency is reflected in this announcement, as the company navigates through the complexities of market adjustments and seeks to foster stronger investor confidence in its securities.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements include various plans, objectives, expectations, strategies, and projections concerning the future. Investors should remain cautious and not overly rely on these statements, given the inherent risks and uncertainties that could lead to actual results differing materially from these expectations. Factors influencing these risks and uncertainties include market conditions, competitive dynamics, regulatory changes, and overall economic shifts both domestically and internationally.

For further information and updates, stakeholders are encouraged to refer to reports filed by the company with the SEC at www.sec.gov.