Cloopen Group Holding Ltd has officially completed a merger, transitioning into a privately-held company. This significant change comes after shareholders overwhelmingly approved the merger agreement, with approximately 99.98% voting in favor during an extraordinary general meeting held on September 24, 2026.

The merger became effective on October 28, 2026, marking a new chapter for Cloopen, a company specializing in prepackaged software services. As a result of the merger, Cloopen will cease to exist as a publicly traded entity, and its American Depositary Shares (ADSs) will no longer be quoted on the OTC Pink Market.

According to the filing, each ordinary share outstanding before the merger was canceled in exchange for $0.4940 in cash per share. Similarly, each ADS was canceled for $2.9641 in cash, reflecting the terms set out in the merger agreement.

Background

Cloopen Group Holding Ltd operates under the Standard Industrial Classification (SIC) code 7372, which encompasses services related to prepackaged software. The company is listed on the OTC market under the ticker RAASY. Prior to this merger, Cloopen had been navigating a challenging landscape in the software industry, which has seen significant consolidation and strategic shifts.

What the Filing Says

The recent filing, dated October 29, 2026, details the completion of the merger and outlines the financial compensation for shareholders. It states, "The Merger Agreement and the Transactions contemplated thereby, including the Merger, were approved by approximately 99.98% of the total votes cast at the EGM." The filing further explains that the merger allows Cloopen to become a wholly-owned subsidiary of a new holding company.

Impact

This merger affects various stakeholders, including shareholders who will receive cash compensation for their shares. Additionally, it impacts employees and management as the company transitions to a private structure, which may lead to changes in operational strategies and corporate governance. The move may also influence other companies in the prepackaged software sector, potentially prompting similar mergers or acquisitions as firms seek to streamline operations.

What's Next

Following the merger, Cloopen intends to suspend its reporting obligations under the Securities Exchange Act by filing a certification and notice on Form 15 with the SEC. This will effectively terminate its reporting obligations, marking a significant change in how the company operates moving forward. Details on future plans or strategic directions were not disclosed in the filing.