The depository of Top Glove Corporation(TGLVY) ADR has announced that the ADR would be terminated effective August 29, 2021. Malaysia-based Top Glove is the manufacturer of rubber products such as gloves, face masks, etc. and became popular during the pandemic last year when the demand for PPE products soared. The relatively unknown ADR at the time took like a rocket and then fell dramatically when a vaccine was invented for Covid-19.

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Source: BNY Mellon

ADR holders have until Aug 22, 2022 to surrender their ADRs for cancellation and receive the underlying ordinary shares or cash.

Below is an excerpt from the termination notice:

As owners and beneficial owners of the above ADRs, you are hereby notified that The Bank of New York Mellon, as depositary (the “Depositary”), will terminate the Deposit Agreement, dated December 27,2005, among TOP GLOVE CORPORATION BHD (“TOP GLOVE CORPORATION”), the Depositary, and Owners and Holders of ADRs, the (“Deposit Agreement”).

As a result, the existing ADR facility will be terminated effective at 5:00 PM (Eastern Time) on Thursday August 19, 2021. Under the terms of the Deposit Agreement, you have until at least Monday August 22, 2022 to surrender your TOP GLOVE CORPORATION ADRs for delivery of the underlying shares. If you surrender ADRs for delivery of the underlying shares, you must pay a cable fee of $17.50, a cancellation fee of up to $0.05 per ADRs surrendered and any applicable U.S. or local taxes or governmental charges. Payment should be made payable to The Bank of New York Mellon.

Subsequent to Monday August 22, 2022 under the terms of the Deposit Agreement, the Depositary may attempt to sell the underlying shares. If the Depositary has sold such shares, you must surrender your ADRs to obtain payment of the sale proceeds, net of the expenses of sale, any applicable U.S. or local taxes or government charges and a cancellation fee of up to $0.05 per ADRs.

Source: BNY Mellon

Disclosure: No Positions