VisionChina Media Announces ADS-Common Ratio Change
VisionChina, 11/28/12
Chinese mass-transit digital advertising operator VisionChina Media (Nasdaq: VISN) announced today that the ratio for its American Depositary Shares (ADSs) representing common shares of VisionChina Media will change from one ADS representing one common share to one ADS representing twenty common shares, effective as of December 12, 2012. The record holders of VisionChina Media's current ADSs at the close of business on December 11, 2012 will be required to surrender their certificates to the Bank of New York Mellon, as depositary, on a mandatory basis in order to exchange every twenty current ADSs for one new ADS.
The Bank of New York Mellon will contact the ADS holders and arrange for the exchange of their current ADSs for new ADSs. There will be no change to VisionChina Media's underlying common shares in connection with the ratio change. As a result of this ratio change, the trading price of the ADSs is expected to automatically increase proportionally. However, VisionChina Media cannot give any assurance that the trading price of the new ADSs will be equal to or greater than the trading price of the current ADSs multiplied by the change in the ratio.
Editor's Note: VisionChina Media's ADSs have been trading at under USD 1 since early June this year. The newly announced ADS-to-common ratio change will help the company regain compliance with Nasdaq listing rules, which require shares of Nasdaq-listed firms to trade above USD 1. Under Nasdaq's policy, if a company trades for 30 consecutive business days below the USD 1 minimum closing bid price requirement, NASDAQ will send a deficiency notice to the company, advising that it has been afforded a "compliance period" of 180 calendar days to regain compliance with the applicable requirements. For more background on this topic, please see "VisionChina Receives Nasdaq Delist Warning" MD 7/18/12 issue.
Keywords: financing VisionChina Nasdaq television VISN digital media advertising in-vehicle display out-of-home display
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