Benzinga | Oct 20, 2020 06:05AM EDT

TuanChe Announces ADS Ratio Change From 1:4 To 1:16

BEIJING, Oct. 20, 2020 /PRNewswire/ -- TuanChe Limited ("TuanChe" or the "Company") (NASDAQ:TC), a leading omni-channel automotive marketplace in China, today announced that it will change the ratio of its American depositary Shares ("ADSs") to Class A ordinary shares from one (1) ADS representing four (4) Class A ordinary shares to one (1) ADS representing sixteen (16) Class A ordinary shares.

For TuanChe's ADS holders, this ratio change will have the same effect as a 1-for-4 reverse ADS split. There will be no change to TuanChe's Class A ordinary shares. Furthermore, no physical action by ADS holders will be required to effect the ratio change, as the change will be effected on the books of the depositary. The effect of the ratio change on the ADS trading price on the Nasdaq Capital Market is expected to take place at the open of business on October 22, 2020 (U.S. Eastern Time). Any fractional ADSs will be sold and the net proceeds from the sale of fractional ADSs will be distributed to the holders entitled thereto.

As a result of the change in the ADS ratio, the ADS price is expected to increase proportionally, although TuanChe can give no assurance that the ADS price after the change in the ADS ratio will be equal to or greater than four times the ADS price before the change.