Nexxen International (NEXN) Investor Update summary

Rationale for trading structure changes

• Proposed changes include exchanging Nasdaq-listed ADRs for ordinary shares, a reverse stock split, and delisting from the LSE to trade solely on Nasdaq, aiming to benefit long-term capital appreciation.

• The shift is designed to attract more U.S. investors, as over 60% of global equity assets are managed in the U.S., and many mandates prevent ADR ownership.

• Consolidating trading into a single U.S. listing is expected to increase liquidity, reduce complexity, and align valuation multiples with U.S. peers.

• Index inclusion potential is highlighted, as the new structure could make the company eligible for major indices, attracting passive and index-tracking investors.

• Streamlining operations by eliminating duplicative regulatory and compliance efforts across two markets is expected to reduce costs and improve efficiency.

Process and timeline

• Shareholder vote on proposed changes is scheduled for the AGM on December 20th.

• If approved, ADR holders will receive a 30-day notice, with the reverse split and exchange process targeted for completion around February 14th, 2025.

• The process includes a mandatory exchange of ADRs for ordinary shares, termination of the ADR facility, and delisting from the LSE.

• The timeline is considered achievable, though minor delays could occur due to SEC filings.

Investor feedback and anticipated impact

• U.S. investors have cited limited liquidity and structural complexity as barriers; the changes are expected to address these concerns.

• Feedback indicates that consolidating to a single U.S. listing will reduce price manipulation and arbitrage between exchanges.

• Future plans include considering a shift to U.S. GAAP reporting to further attract U.S. investors.