PHOENIX, Dec. 5, 2022
/PRNewswire/ -- Renren Inc. (NYSE: RENN)
("Renren" or the "Company"), an
operator of several US-based SaaS businesses, today announced an
increase in the per share amount to be paid in the special cash
distribution, that was announced on November 3, 2022, relating
to the settlement contemplated by the Stipulation of Settlement,
dated as of October 7, 2021 and as amended on May
27, 2022.
The amount of the special cash distribution was previously
announced to be US$0.7013 per Renren
Class A ordinary share, or US$31.5585
per Renren American Depositary Share ("ADS"). Each
one (1) ADS currently represents 45 Renren Class A ordinary shares.
The special distribution amount, in each case, is prior to the
deduction of applicable taxes, fees, and expenses. As a result of
interest earned on the settlement account, more funds will be
available for distribution from the settlement account on a
pro-rata basis, and the amount of the special cash distribution
will now be US$0.7026 per Renren
Class A ordinary share, or US$31.6170
per Renren ADS; in each case, prior to deduction of applicable
taxes, fees and expenses.
Additionally, Epiq Class Action & Claims Solutions,
Inc., as administrator for the settlement funds, will now be
responsible for paying the special distribution to record date
holders of Renren ordinary shares and transferring settlement funds
to the Depositary Trust Clearinghouse & Company for subsequent
disbursement to ADS owners. Accordingly, Citibank, N.A., depositary
for Renren's ADS program, will no longer charge a special cash
distribution fee of US$0.05 per ADS held pursuant to the
Renren ADS Deposit Agreement (as amended).
The special cash distribution is still expected to be paid
on December 21, 2022. Due bill period will run
from November 18, 2022 to December 21, 2022. Due bills
track trades of stock in the interim period and ensure the right
stockholder receives the special distribution. In order to receive
the special cash distribution, you must continue to hold your
Renren ADSs at least through the market close on the special cash
distribution payment date (i.e. December 21, 2022).
According to the NYSE, the Ex-Dividend date for NYSE trading
will be December 22, 2022. The Ex-Dividend date is the date on
which the NYSE will reset the opening trading price
of Renren's ADSs to reflect the payment of the
special cash distribution. If you buy Renren ADSs on or after
the Ex-Dividend date, you will not receive the special cash
distribution.
Renren expects that trading for its ADSs will be extremely
volatile given the per ADS value of the special cash distribution
compared to the current trading price of Renren's ADS. In
particular, volatility is expected to be high on and
around December 21, 2022, the last date on which purchasers of
ADSs on the NYSE will obtain the right to receive the special cash
distribution with respect to the purchased ADSs, and on and
around December 22, 2022, the Ex-Dividend date.
The trading price for Renren's ADSs on the ex-dividend
date is expected to be much lower than the closing price on the
last trading date before the ex-dividend date, to reflect the
amount of the special cash distribution. To the extent
that Renren's ADSs trade below US$1.00 per ADS
for an extended period of time, or at a price viewed to be an
abnormally low selling price under NYSE
rules, Renren's ADSs may be suspended from trading on the
NYSE and ultimately delisted.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several US-based SaaS
businesses including Chime, a CRM and Marketing Automation
platform, and Trucker Path, a trip-planning and business app for
long-haul truckers. Renren's ADSs, each currently
representing 45 Class A ordinary shares of the Company, are traded
on the NYSE under the symbol "RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of
the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar
statements. Renren may also make written or oral
forward-looking statements in its filings with the U.S.
Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Renren's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties, which could
cause actual results to differ from the forward-looking
statements. The Company cautions investors that the
forward-looking statements included in this press release are not a
guarantee of future events, and that actual events may differ
materially from those made in or suggested by the forward-looking
statements. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Further information
regarding these and other risks is included in our annual report on
Form 20-F and other documents filed with the SEC. All
information provided in this press release is as of the date of
this press release, and Renren does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
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SOURCE Renren Inc.