Nexxen International (NEXN) Investor Update summary

Rationale for trading structure changes

• Proposed changes aim to exchange Nasdaq-listed ADRs for ordinary shares, terminate the ADR facility, conduct a 2-for-1 reverse stock split, and delist from the London Stock Exchange to trade solely on Nasdaq under the ticker NEXN.

• The initiative is designed to attract more U.S. investors, simplify the trading structure, and align with U.S.-listed peers trading at higher multiples.

• Consolidating to a single U.S. listing is expected to reduce complexity, increase liquidity, and minimize price volatility.

• The changes are also intended to improve eligibility for index inclusion, potentially attracting passive and index fund investors.

• Streamlining operations will reduce duplicative regulatory and compliance efforts and associated costs.

Process and timeline

• Shareholder approval is required at the AGM on December 20th, with a 30-day notice to ADR holders if approved.

• The reverse split and exchange of ADRs for ordinary shares are targeted for completion around February 14th, 2025, followed by LSE delisting.

• The process is structured to minimize liquidity risk and U.K. tax complications for shareholders.

• Any delays would be communicated, but management is confident in the timeline.

Expected impact and feedback

• Cost savings from the changes are estimated at less than $1 million, mainly from reduced human and regulatory effort.

• Feedback from investors highlighted barriers due to ADR structure, limited liquidity, and trading complexity, which the changes aim to address.

• The move is not expected to affect capital allocation or share buyback plans.

• Management is considering future reporting changes to U.S. GAAP and 10-K/10-Q filings to further attract U.S. investors.

• Recent business performance remains strong, with Q4 trends consistent with record Q3 results.