China Xiniya Fashion Ltd. said Dec. 26 that it plans to transfer the listing of its American depositary receipts from the New York Stock Exchange to NYSE American in line with purchase and divestiture transactions that will change the apparel company's core business from men's fashion to microlending.
The deals, which were made earlier in December, include a securities purchase agreement with True Silver Ltd. and Honest Plus Investments Ltd. in addition to a share transfer agreement with Qiming Investment Ltd.
China Xiniya also said it entered into an amendment with Deutsche Bank Trust Co. Americas for its current deposit agreement governing outstanding ADRs, under which each American depositary share will represent 48 ordinary shares of the company at $0.00005 per share. The current ratio is one ADS to 16 shares.
The company submitted an application Dec. 22 to list its ADSs on NYSE American while retaining its current trading symbol of XNY. The transfer plan had previously been approved by China Xiniya's board of directors.
In addition, the revised ADS-to-share ratio will require holders of ADSs to surrender them in exchange for ones that reflect the change.