111, Inc. announced that it plans to change the ratio of its American Depositary Shares to Class A ordinary shares from one ADS representing two Class A ordinary shares to the new ratio of one ADS representing twenty Class A ordinary shares. For the company’s ADS holders, this ratio change will have the same effect as a one-for-ten reverse ADS split. There will be no change to 111’s underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled in connection with this ratio change. No action is required by the company’s ADS holders to effect the ratio change, as the change will be effected on the books of the ADS depositary. Following the ratio change, 111’s ADSs will continue to be traded on Nasdaq under the ticker symbol (YI). The effect of the ratio change on the ADS trading price on Nasdaq is expected to take place at the open of business on January 24. As a result of the change in the ADS ratio, the ADS price is expected to increase proportionally, although the company can give no assurance that the ADS price after the change in the ADS ratio will be equal to or greater than ten times the ADS price before the change.
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