Jan 31 (Renewables Now) - ReneSola Ltd (NYSE:SOL) plans a ratio change related to its American Depositary Shares (ADSs), which will help the Chinese solar company to regain compliance with the continued listing requirements of the New York Stock Exchange (NYSE).
The company said on Monday it will implement a one-for-five reverse stock split, changing from two to 10 the number of underlying shares in each ADS. As part of this move, the holders of ADSs will need to exchange their current shares for new ADSs on the basis of one new ADS for every five existing surrendered.
The effective date of the ratio change is set for February 10, 2017.
In November, ReneSola said it had received notice from the NYSE informing it that it is not in compliance with the stock exchange's price criteria for continued listing, as its ADSs had traded below USD 1 (EUR 0.934) for 30 trading days. Later that month the company also reported a loss after four profitable quarters.
ReneSola expects the price of its ADS to automatically increase proportionally following the ratio change.