Shares of VisionSys AI Inc (NASDAQ:VSA) fell sharply in after-hours trade on Wednesday after the company disclosed a one-for-ten reverse ADS split. The decline amounted to an 11.6% drop in after-hours trading following the split announcement.
The company said it will revise the ADS ratio so that one American depositary share will represent 2,500 Class A ordinary shares instead of the current 250. That ratio change is set to take effect on May 26, 2026.
For holders of ADSs, the adjustment will operate as an ordinary one-for-ten reverse split. On the effective date, existing ADSs will be automatically exchanged, with every ten current ADSs converted into one new ADS. VisionSys AI said this exchange will be handled automatically through The Depository Trust Company and the Direct Registration System.
The company advised that no fractional ADSs will be issued in connection with the exchange. Instead, any fractional entitlements will be pooled and sold by the depositary bank. Net cash proceeds from those aggregated sales will be distributed to eligible ADS holders after deduction of applicable fees, taxes and expenses.
VisionSys AI emphasized that its underlying Class A ordinary shares will remain unchanged by the ratio adjustment. Following the split, the company's ADSs will continue to be listed and traded on the Nasdaq Capital Market under the existing trading symbol "VSA." The new CUSIP number assigned to the ADSs will be 876108408.
The company stated that it expects the trading price per ADS to increase proportionally as a result of the ratio change, while noting it cannot guarantee that the post-split trading price will equal or exceed a proportionate level compared with the pre-split price.
VisionSys AI describes itself as an emerging technology services firm focused on brain-machine interaction businesses.
Market snapshot included in the announcement: the company displayed intraday data indicating a prior close near 0.33 USD and an after-hours price of 0.29 USD, a move reflected in the reported 11.6% after-hours decline.
What holders should expect:
- Automatic conversion of ADSs at a one-for-ten ratio on May 26, 2026.
- No issuance of fractional ADSs; fractional interests to be aggregated, sold, and paid out in cash net of fees, taxes and expenses.
- Continued Nasdaq Capital Market listing under the symbol VSA and adoption of a new CUSIP: 876108408.