BEIJING, June 1, 2022
/PRNewswire/ -- RISE Education Cayman Ltd ("RISE" or the "Company")
(NASDAQ: REDU) today announced its plan to change the number of the
Company's shares represented by each American Depositary Share
("ADS") from two (2) shares per ADS to ten (10) shares per ADS (the
"Ratio Change"). The effective date of the Ratio Change is expected
to be June 10, 2022.
To effect this Ratio Change, ADS holders will be required to
exchange their existing ADSs for new ADSs on the basis of one (1)
new ADS for every five (5) existing ADSs surrendered. No fractional
ADSs will be issued. Instead, the Company's depositary, JPMorgan
Chase Bank, N.A. (the "Depositary"), will aggregate fractional ADSs
and attempt to sell such ADSs in order to distribute any
cash-in-lieu proceeds, net any fees and expenses, to ADS holders.
Further notice will be provided by the Depositary.
For RISE's ADS holders, this Ratio Change will have the same
effect as a one-for-five reverse split on the existing ADSs. No new
shares will be issued in connection with the Ratio Change and
RISE's ADSs will continue to be traded on the Nasdaq Stock Market
under the symbol "REDU."
The Ratio Change will affect all ADS holders. The Ratio Change
will not reduce any ADS holder's percentage ownership interest in
the Company, except for minor adjustments that may result from the
treatment of fractional ADSs. Proportionate voting rights and other
rights and preferences of the ADS holders will not be reduced by
the ratio change (subject to the treatment of fractional ADSs).
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about RISE and the industry. All
information provided in this press release is as of the date
hereof, and RISE undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although RISE believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
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SOURCE RISE Education Cayman Ltd