QTT - Qutoutiao plunges on plans to implement ADS ratio change

Qutoutiao (NASDAQ:QTT) plans to change the ratio of its ADSs to its Class A ordinary shares, par value $0.0001/share, from the current ADS Ratio of 4 to 1 to a new ADS Ratio 2 to 5 Class A ordinary shares. The company expects that the change in the ADS Ratio will be effective on or about Dec.10. For Qutoutiao’s ADS holders, the change in the ADS Ratio will have the same effect as a 1-for-10 reverse ADS split. The change in the ADS Ratio will have no impact on Qutoutiao's underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled related to the change in the ADS Ratio. Led by the change in the ADS ratio, the ADS trading price is expected to increase proportionally. Shares trading 16.7% down premarket.

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Qutoutiao plunges on plans to implement ADS ratio change