Biodexa Pharmaceuticals announces a ratio change for its ADRs, effective July 31, 2025, to comply with Nasdaq requirements.
Quiver AI Summary
Biodexa Pharmaceuticals PLC has announced a change in its American Depositary Receipts (ADR) ratio, effective July 31, 2025. The new ratio will be one ADR representing 100,000 ordinary shares, up from the previous ratio of one ADR for 10,000 shares. ADR holders will need to exchange their old ADRs for new ones on a mandatory basis, and no fractional ADRs will be issued. This adjustment aims to ensure compliance with Nasdaq's minimum bid price requirement of $1.00 per share, although the company cannot guarantee this outcome. JP Morgan Chase Bank will facilitate the exchange process for ADR holders. The company's ordinary shares will remain unaffected by this change. The press release also includes a caution regarding forward-looking statements.
Potential Positives
- The press release announces a Ratio Change for Biodexa's American Depositary Receipts (ADRs), which aims to bring compliance with the Nasdaq $1.00 minimum bid price per share requirement, potentially enhancing market presence and investor interest.
- The Ratio Change reflects a proactive approach by the company to manage its ADRs effectively, which could improve liquidity and trading volume.
- The effective date for the Ratio Change is set for July 31, 2025, providing a clear timeline for investors and ADR holders to make necessary adjustments.
Potential Negatives
- The ratio change for the ADRs may indicate that the company is struggling to maintain its stock price above the Nasdaq minimum bid price requirement, suggesting potential financial instability.
- The requirement for ADR holders to surrender their existing ADRs for cancellation may create confusion or dissatisfaction among investors, potentially affecting shareholder sentiment.
- The company cannot assure that the ratio change will effectively bring the ADR price into compliance with Nasdaq requirements, leaving investors uncertain about the outcome.
FAQ
What is the ADR ratio change for Biodexa Pharmaceuticals?
Biodexa's ADR ratio is changing from 1:10,000 to 1:100,000, effective July 31, 2025.
When will the ADR ratio change take effect?
The effective date of the ADR ratio change is expected to be July 31, 2025.
What should ADR holders do after the ratio change?
ADR holders must surrender their old ADRs to receive new ADRs at the new ratio.
Will the ratio change affect Biodexa's ordinary shares?
No, the ordinary shares of Biodexa will remain unaffected by the ADR ratio change.
What is the purpose of the ADR ratio change?
The change aims to help Biodexa comply with Nasdaq's $1.00 minimum bid price requirement.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
July 15, 2025
Biodexa Pharmaceuticals PLC
(“Biodexa” or the “Company”)
ADR Ratio Change
Biodexa Pharmaceuticals PLC (Nasdaq: BDRX), an acquisition-focused clinical stage biopharmaceutical company developing a pipeline of innovative products for the treatment of diseases with unmet medical needs, today announces a ratio change on its American Depositary Receipts (“ADR”) from one (1) ADR representing ten thousand (10,000) ordinary shares, to the new ratio of one (1) ADR representing one hundred thousand (100,000) ordinary shares (the "Ratio Change"). The effective date of the Ratio Change is expected to be July 31, 2025.
Pursuant to the Ratio Change, ADR holders will be required on a mandatory basis to surrender their ADRs for cancellation and exchange to receive one (1) new ADR (New CUSIP: 59564R880) for every ten (10) old ADRs (Old CUSIP: 59564R807). No fractional ADRs will be allocated. The aggregate fractions, if any, will be sold and the net proceeds will be distributed to the entitled ADR holder. The Company's Depositary, JP Morgan Chase Bank, N.A. will contact ADR holders and arrange for the exchange of their existing ADRs for new ADRs.
For ADR holders, the Ratio Change will have the same effect as a one-for-ten reverse ADR split. The ordinary shares of Biodexa will not be affected by this change.
The Ratio Change is aimed to bring the price of the Company’s ADRs into compliance with the Nasdaq $1.00 minimum bid price per share requirement, although Biodexa can give no assurance that the Ratio Change will be effective in achieving this goal.
Forward-Looking Statements
Certain statements in this announcement may constitute “forward-looking statements” within the meaning of legislation in the United Kingdom and/or United States. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are based on currently available competitive, financial and economic data together with management's views and assumptions regarding future events and business performance as of the time the statements are made and are subject to risks and uncertainties. We wish to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. All statements contained in this announcement that do not relate to matters of historical fact should be considered forward-looking statements.
Reference should be made to those documents that Biodexa shall file from time to time or announcements that may be made by Biodexa in accordance with the rules and regulations promulgated by the SEC, which contain and identify other important factors that could cause actual results to differ materially from those contained in any projections or forward-looking statements. These forward-looking statements speak only as of the date of this announcement. All subsequent written and oral forward-looking statements by or concerning Biodexa are expressly qualified in their entirety by the cautionary statements above. Except as may be required under relevant laws in the United States, Biodexa does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or events otherwise arising.
