Benzinga | Oct 26, 2020 05:28AM EDT

Daqo New Energy Changes ADS Ratio from One ADS/25 Shares to One ADS/5 Shares; Has Same effect as 1:5 Reverse Split

Daqo New Energy Corp. (NYSE:DQ) today announced that it will change the ratio of American depositary share (the "ADS") to the Company's ordinary share (the "Ordinary Share") from one (1) ADS representing twenty-five (25) Ordinary Shares to one (1) ADS representing five (5) Ordinary Shares. For the Company's ADS holders, this ratio change will have the same effect as a one-for-five ADS split.

JPMorgan Chase Bank, N.A., as depositary for the Company's ADR program, and the Company have agreed to further amend and restate the Amended and Restated Deposit Agreement dated as of October 11, 2016 in order to bring it in line with current standards and to reflect the change of the ratio of ADS to Ordinary Shares.

The depositary will announce the effective date of the ratio change and the further amendment and restatement promptly upon the filing of such further amended and restated deposit agreement, with the anticipation that the change in the ADS ratio will be effective on November 17, 2020.

As a result of the ratio change, the Company's ADS holders as of November 9, 2020, namely the record date, should expect to receive four (4) additional ADSs for each ADS held. The effect on the ADS price will take place on November 17, 2020.

No action is required by the Company's ADS holders to effect the ADS Ratio Change. There will be no change to the Company's underlying Ordinary Shares.