Mercurity Fintech Holding Inc. Announces Updates to Holders of ADRs Regarding Termination of ADR Facility

New York, Jan. 27, 2023 (GLOBE NEWSWIRE) -- Mercurity Fintech Holding Inc. (the “Company,” “we,” “us,” “our company,” or “MFH”) (Nasdaq: MFH), a digital fintech group powered by blockchain technology, announced today that the Board of Directors of the Company (the “Board”) approved to reverse the decision on the ADR Ratio Change (as defined below) and maintain the current ADR to ordinary share ratio at 1-to-360 until the cancellation of the ADR facility. Previously, the Board approved the proposals of the share consolidation to the authorized share capital (the “Share Consolidation”) at a ratio of one (1)-for-four hundred (400), with the par value of each ordinary share changed to US$0.004 per ordinary share, a mandatory exchange (the “Mandatory Exchange”) of all the ADRs to ordinary shares at the current ADR exchange ratio, and in connection therewith the Company will simultaneously change the ADR to ordinary share ratio from one (1)-to-three hundred and sixty (360) to one (1)-to-one (1) (the “ADR Ratio Change”). Today, the Board approved to reverse the decision on the ADR Ratio Change because such change will not be necessary for the Company’s efforts on the termination of the ADR facility and Share Consolidation.

In addition, today, Citibank, N.A., the depositary (the “Depositary”) of the Company’s American Depositary Receipts (the “ADRs”), distributed to all holders and beneficial owners of the Company’s ADRs a notification (the “Termination Notice”) regarding termination of the Deposit Agreement, dated April 13, 2015, as amended, by and among the Company, the Depositary, and all holders and beneficial owners of the ADRs (the “Deposit Agreement”). The effective date of the termination of the Deposit Agreement will be February 28, 2023 (the “Effective Date”).

As a result of the Mandatory Exchange and Share Consolidation, ADR holders should expect to receive nine-tenths (0.9) of one (1) new ordinary share for every ADR held immediately before the Effective Date, but the opening price of the ordinary share post the Share Consolidation and Mandatory Exchange should increase by one-ninth (1/9) of the closing price of the ADRs immediately before the Effective Date.

Below is a copy of the Termination Notice to the ADR holders:

NOTICE OF TERMINATION OF ADR FACILITY
FOR MERCURITY FINTECH HOLDING INC.

TO ALL HOLDERS AND BENEFICIAL OWNERS OF MERCURITY FINTECH HOLDING INC. AMERICAN DEPOSITARY SHARES (“ADSs”).

DEPOSITARY:	CITIBANK, N.A.
COMPANY:	MERCURITY FINTECH HOLDING INC., a corporation incorporated under the laws of the Cayman Islands (the "Company").
DEPOSITED SECURITIES:	Existing fully paid ordinary shares of the Company (the “Shares”).
ADS CUSIP NO:	58936H109.
ADS TICKER:	MFH.
NEW SHARE CUSIP NO.:	58936H208.
NEW SHARE TICKER:	MFH.
ADS(s) to SHARE(s) RATIO UPON TERMINATION:	One (1) ADS to three hundred sixty (360) existing Shares – see explanation below.
ADS(s) TO SHARE(s) RATIO AFTER SHARE CONSOLIDATION:	One (1) ADS to nine-tenths (0.9) of a new Share – see explanation below.
DEPOSIT AGREEMENT:	Deposit Agreement, dated as of April 13, 2015, as amended by Amendment No. 1 to Deposit Agreement, dated as of July 31, 2018, as further amended by Amendment No. 2, dated as of May 19, 2020, and as further amended by Amendment No. 3, dated as of December 9, 2022, by and among the Company, the Depositary, and all Holders and Beneficial Owners of ADSs issued thereunder.
TERMINATION DATE:	February 28, 2023.
ADS CANCELLATION CUT-OFF TIME:	5:00 PM (New York time) on February 23, 2023.
BOOKS CLOSURE PERIOD	Beginning February 23, 2023 (5:00 PM New York time) not to be reopened.

CITIBANK, N.A. HEREBY GIVES NOTICE OF THE TERMINATION OF THE AMERICAN DEPOSITARY RECEIPTS FACILITY FOR THE ADSs EFFECTIVE AS OF THE TERMINATION DATE.