Earlyworks Co., Ltd. (NASDAQ:ELWS) (the "Company" or "Earlyworks"), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System ("GLS"), announced plans to change the ratio of its American Depository Shares ("ADSs") to its ordinary shares from one (1) ADS, representing one (1) ordinary share, to one (1) ADS representing five (5) ordinary shares (the "ADS Ratio"). The change in the ADS Ratio is expected to become effective on or about May 16, 2024 (the "Effective Date").
For the Company's ADS holders, the change in the ADS Ratio has the same effect as a one-for-five reverse ADS split and will have no impact on an ADS holder's proportional equity interest in the Company. The change in the ADS Ratio is intended to further support the liquidity in the Company's ADSs and to enable the Company to regain compliance with the Nasdaq minimum bid price requirement.