Scage Future Announces Plan to Implement ADS Ratio Change

Scage Future will enact a 1-for-15 reverse ADS split on October 30, 2026.

What the company is saying

Scage Future is announcing a change in its American Depositary Share (ADS) ratio from 1 ADS per 1 ordinary share to 1 ADS per 15 ordinary shares, effective on or about October 30, 2026. The company frames this as a procedural adjustment, emphasizing that the change will have the same effect as a one-for-fifteen reverse ADS split. The process is described as automatic, with existing ADSs cancelled and new ADSs issued by Citibank, N.A., acting as the depositary bank. No action is required from ADS holders, and fractional entitlements will be aggregated and sold, with net proceeds distributed after fees, taxes, and expenses. The company stresses that there will be no impact on the underlying ordinary shares—no shares will be issued or cancelled. Scage Future maintains that its ADSs will continue trading on the Nasdaq Capital Market under the symbol 'SCAG', with a new CUSIP number to be announced. The tone is neutral and factual, with explicit disclaimers that the post-split ADS price may not be exactly fifteen times the pre-split price.

What the data suggests

The announcement provides clear mechanics: the ADS ratio will change from 1:1 to 1:15, effective on or about October 30, 2026. Holders will receive one new ADS for every fifteen existing ADSs, with the exchange handled automatically by the depositary bank. No fractional ADSs will be issued; instead, fractional interests will be aggregated and sold, and proceeds distributed net of fees, taxes, and expenses. The underlying ordinary shares are unaffected—no issuance or cancellation will occur. The CUSIP number for the ADSs will change from 80590A105 to a new number. The company expects the ADS trading price to increase proportionally, but makes no guarantee of a precise fifteenfold adjustment. No financial results, operational metrics, or business outlook are disclosed. The data is complete for the corporate action, but offers no insight into business performance or strategy.

Analysis

The announcement is a factual, procedural notice regarding a change in the ADS-to-ordinary share ratio, with clear mechanics and timing. The only forward-looking statements are the anticipated effective date and the expectation that the ADS price will adjust proportionally, both of which are standard for such corporate actions and are accompanied by appropriate disclaimers. There is no promotional or exaggerated language, and no claims are made about operational or financial improvement. No large capital outlay or business transformation is discussed, and the announcement does not attempt to link the ratio change to any broader strategic or financial benefit. The data fully supports the described process, and there is no gap between narrative and evidence.

Risk flags

• ●There is a risk that the ADS trading price will not adjust exactly in line with the new ratio, as the company explicitly states it cannot assure a fifteenfold increase. This could result in unexpected price movements or reduced liquidity for ADS holders.
• ●Fractional ADS entitlements will be aggregated and sold, with net proceeds distributed after fees, taxes, and expenses. This introduces the risk that holders with small positions may receive less than the proportional value of their holdings due to transaction costs.
• ●The announcement does not address the underlying reasons for the ratio change, such as compliance with listing standards or marketability concerns, leaving investors without context for the corporate action.

Bottom line

Scage Future is implementing a 1-for-15 reverse ADS split effective October 30, 2026, with all mechanics and timing clearly disclosed. The process is automatic for holders, with Citibank, N.A. managing the exchange and fractional sales. The company makes no assurances about the post-split ADS price, warning that it may not be exactly fifteen times the pre-split value. No financial or operational data accompany the announcement, so investors cannot assess the business rationale or health from this release alone. The action is routine for ADS issuers and does not affect the underlying ordinary shares. Investors should be aware of potential price and liquidity impacts, as well as the effect of fees on fractional entitlements. The key takeaway is that this is a procedural change with no immediate operational or financial insight.

Announcement summary

(NASDAQ:SCAG) Scage Future announced it will change the ratio of its American Depositary Shares (ADSs) to its ordinary shares from the current ratio of one (1) ADS to one (1) ordinary share to a new ratio of one (1) ADS to fifteen (15) ordinary shares. The ADS Ratio Change is anticipated to be effective on or about October 30, 2026. For holders of ADSs as of the Effective Date, the change will have the same effect as a one-for-fifteen reverse ADS split. On the Effective Date, holders will receive one (1) new ADS for every fifteen (15) existing ADSs held, with the exchange occurring automatically and the existing ADSs being cancelled and new ADSs issued by Citibank, N.A., the depositary bank. Holders of ADSs are not required to take any action in connection with the ADS Ratio Change. No fractional new ADSs will be issued; instead, fractional entitlements will be aggregated and sold by the Depositary Bank, with net cash proceeds (after deduction of fees, taxes, and expenses) distributed to the applicable ADS holders. The change in the ADS Ratio will not impact Scage Future's underlying ordinary shares, and no ordinary shares will be issued or cancelled as a result. Scage Future's ADSs will continue to trade on the Nasdaq Capital Market under the symbol "SCAG." The CUSIP number for the ADSs will change from 80590A105 to a new CUSIP number to be announced. The ADS trading price is expected to increase proportionally as a result of the change, but the company cannot assure that the price after the change will be equal to or greater than fifteen times the price before the change. Scage Future is a zero-emission solution provider in China, focused on new energy heavy-duty commercial vehicles and e-fuel solutions. The company has developed products including the Dragon II plug-in hybrid dump truck, Galaxy II plug-in hybrid truck, and Q-Truck autonomous tractor trailer. Citibank, N.A. is the depositary bank for the company's ADS program.

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