The company’s shift involves an automatic exchange process managed by Citibank, N.A., acting as the depositary bank. Under this arrangement, shareholders will receive one new ADS for every fifteen currently held, with existing shares cancelled upon the effective date. Investors need not take any action to participate in the conversion. Any fractional entitlements resulting from the consolidation will be aggregated, sold by the depositary, and the net proceeds distributed to the eligible holders after accounting for associated fees and taxes.
Scage Future to Implement 1-for-15 ADS Ratio Change
Nanjing-based Scage Future intends to restructure its American Depositary Shares, shifting the current one-to-one ratio to one-to-fifteen. Scheduled for October 30, 2026, the transition functions as a reverse split for investors, aiming to adjust the stock's market profile while maintaining its existing ticker on the Nasdaq Capital Market.
While the company anticipates a proportional increase in the ADS trading price, it notes that market performance remains uncertain and cannot guarantee the stock will maintain a value fifteen times higher than its pre-split price. This adjustment has no impact on Scage Future’s underlying ordinary shares, which remain unchanged. The company’s ticker symbol, SCAG, will persist, though the ADS will be assigned a new CUSIP number to reflect the restructuring.
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