Cloopen Group Holding Limited announced that it will change the ratio of its American depositary shares (“ADSs”) to Class A ordinary shares from one (1) ADS representing two (2) Class A ordinary shares to one (1) ADS representing six (6) Class A ordinary shares.
For Cloopen’s ADS holders, this ratio change will have the same effect as a 1-for-3 reverse ADS split. There will be no change to Cloopen’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 New York Stock Exchange is expected to take place at the open of business on March 15, 2023 (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.
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As a result of the change in the ADS ratio, the ADS price is expected to increase proportionally, although Cloopen can give no assurance that the ADS price after the change in the ADS ratio will be equal to or greater than three times the ADS price before the change.
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Cloopen Group Holding Limited is a leading multi-capability cloud-based communications solution provider in China offering a full suite of cloud-based communications solutions, covering communications platform as a service (CPaaS), cloud-based contact centers (cloud-based CC), and cloud-based unified communications and collaborations (cloud-based UC&C). Cloopen’s mission is to enhance the daily communication experience and operational productivity for enterprises. Cloopen aspires to drive the transformation of enterprise communications industry by offering innovative marketing and operational tactics and SaaS-based tools.
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