NIP Group plans 1-for-30 reverse ADS split effective July 6

NIP Group Inc. (NASDAQ: NIPG) announced plans to change its American Depositary Share ratio from one ADS representing two Class A ordinary shares to one ADS representing 60 Class A ordinary shares, according to a company statement.

The change will function as a 1-for-30 reverse ADS split for shareholders and is scheduled to take effect July 6, 2026, pending SEC approval of a post-effective amendment to the company's Form F-6 registration statement.

ADS holders in the Direct Registration System and The Depository Trust Company will have their shares automatically exchanged on the effective date. Every 30 existing ADSs will be converted to one new ADS, with Citibank N.A. serving as the depositary bank for the exchange process.

The company will not issue fractional new ADSs. Instead, fractional entitlements will be aggregated and sold by the depositary bank, with net cash proceeds distributed to applicable ADS holders after fees and expenses.

The ADS ratio change will not affect the company's underlying Class A ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change. Trading will continue on the Nasdaq Stock Market under the ticker symbol "NIPG."

NIP Group stated the ADS trading price is expected to increase proportionately following the change, though the company noted there is no assurance the post-change price will equal or exceed 30 times the pre-change price.

The depositary bank and company have agreed to amend their deposit agreement dated July 25, 2024, to reflect the ADS ratio change.

Abu Dhabi-based NIP Group operates in Bitcoin mining, compute infrastructure and digital entertainment sectors.

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