Amarin Announces Plan to Initiate a Ratio Change Under Its American Depository Receipt (ADR) Program

Rhea-AI Summary

Amarin (NASDAQ: AMRN) has announced plans to implement a 1-for-20 ratio change in its American Depositary Shares (ADS) program, expected to take effect around April 11, 2025. The adjustment will modify the current 1:1 ratio between ADS and ordinary shares to 1:20.

This strategic move aims to boost the per-share market price of Amarin's ADSs to meet Nasdaq's minimum bid requirement of $1.00 and maintain its listing on The Nasdaq Capital Market. The company's ordinary shares will remain unaffected, and the ADSs will continue trading under the symbol 'AMRN'.

Holders of uncertificated ADSs will experience automatic conversion, while those with certificated ADSs must surrender them for cancellation to receive new ones. Fractional ADSs will be sold, with net proceeds distributed to affected holders.

Positive

• Strategic action to maintain Nasdaq listing compliance
• No action required for uncertificated ADS holders

Negative

• Indicates underlying share price weakness requiring ratio adjustment
• Risk of not meeting minimum bid requirement despite ratio change
• Potential loss of value for holders with fractional shares

Insights

Financial Analyst

Amarin's announcement of a 1-for-20 ADR ratio change represents a significant negative development for the company. This reverse split is being implemented specifically to artificially boost the share price to comply with Nasdaq's $1.00 minimum bid requirement—a clear indication of substantial financial distress.

With Amarin's current share price at just $0.47 and a market capitalization of approximately $193 million, the company is taking emergency measures to avoid delisting. While this ratio change mathematically adjusts the share price without changing the company's total market value, reverse splits historically signal fundamental weakness and typically precede further share price erosion.

Investors should be particularly concerned about several critical implications:

• The need for artificial price support indicates a severe loss of market confidence
• Shareholders owning fewer than 20 shares will receive cash instead of new shares
• Post-reverse split stocks typically face increased selling pressure and reduced liquidity
• The action addresses a compliance issue but does nothing to improve the underlying business problems that caused the price decline

Importantly, this ratio change represents a mathematical adjustment only—it creates no fundamental value and often stigmatizes the company in investors' eyes. While the procedure will automatically convert every 20 existing ADSs into 1 new ADS, the company appropriately acknowledges it "can give no assurance that the trading price per ADS after the Ratio Change will be equal to or greater than twenty times the trading price per ADS before the adjustment."

1-For-20 Ratio Change Initiated to Increase Per Share Market Price of Amarin’s ADSs in Effort to Maintain Nasdaq Listing

DUBLIN and BRIDGEWATER, N.J., March 12, 2025 (GLOBE NEWSWIRE) -- Amarin Corporation plc (NASDAQ: AMRN), today announced its intent to effect a ratio change on its American Depositary Shares (“ADS”) from one (1) ADS representing one (1) ordinary share, to the new ratio of one (1) ADS representing twenty (20) ordinary shares (the "Ratio Change"). The effective date of the Ratio Change is expected to be on or about April 11, 2025 (the “Effective Date”).​

The ordinary shares of Amarin Corporation (the “Company”) will not be affected by this adjustment. The ADSs will continue to trade on The Nasdaq Capital Market under the symbol “AMRN”.​

The objective of the Ratio Change is to increase the per share market price of the Company’s ADSs to comply with Nasdaq’s $1.00 minimum bid price per share requirement and maintain the Company’s listing on The Nasdaq Capital Market. On the Effective Date, holders of uncertificated ADSs in the Direct Registration System (“DRS”) and in the Depository Trust Company (“DTC”) do not need to take any action, as the exchange of every twenty (20) then-held (existing) ADSs for one (1) new ADS will occur automatically. Registered holders of certificated ADSs will be required to surrender their certificated ADSs to the depositary bank for cancellation and will receive one (1) new ADS for every twenty (20) existing ADS surrendered.

No fractional new ADSs will be issued in connection with the Ratio Change. Rather, fractional entitlements to new ADSs will be aggregated and sold by the depositary bank, and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of taxes) will be distributed to the applicable ADS holders by the depositary bank.

As a result of the Ratio Change, the trading price of the Company’s ADSs is expected to increase proportionally, but the Company can give no assurance that the trading price per ADS after the Ratio Change will be equal to or greater than twenty (20) times the trading price per ADS before the adjustment.

Additional questions and answers regarding the Ratio Change can be found under the Investor Relations section of Amarin’s corporate web site here: https://cms.amarincorp.com/sites/default/files/2025-03/e6713d4c-9083-4623-a9e9-6b13d8a4201b.pdf

About Amarin
Amarin is an innovative pharmaceutical company leading a new paradigm in cardiovascular disease management. We are committed to increasing the scientific understanding of the cardiovascular risk that persists beyond traditional therapies and advancing the treatment of that risk for patients worldwide. Amarin has offices in Bridgewater, New Jersey in the United States, Dublin in Ireland, Zug in Switzerland, and other countries in Europe as well as commercial partners and suppliers around the world. 

Forward-Looking Statements
This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are based on the beliefs and assumptions and information currently available to Amarin. All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding Amarin’s planned Ratio Change and its potential impact on the ADS trading price and on liquidity of the ADS, as well as Amarin’s ability to regain compliance with Nasdaq’s minimum bid price requirement and other continued listing requirements. These forward-looking statements are not promises or guarantees and involve substantial risks and uncertainties. A further list and description of these risks, uncertainties and other risks associated with an investment in Amarin can be found in Amarin's filings with the U.S. Securities and Exchange Commission, including Amarin’s annual report on Form 10-K for the fiscal year ended 2024.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Amarin undertakes no obligation to update or revise the information contained in its forward-looking statements, whether as a result of new information, future events or circumstances or otherwise. Amarin’s forward-looking statements do not reflect the potential impact of significant transactions the company may enter into, such as mergers, acquisitions, dispositions, joint ventures or any material agreements that Amarin may enter into, amend or terminate.

Availability of Other Information
Amarin communicates with its investors and the public using the company website (www.amarincorp.com) and the investor relations website (www.amarincorp.com/investor-relations), including but not limited to investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that Amarin posts on these channels and websites could be deemed to be material information. As a result, Amarin encourages investors, the media and others interested in Amarin to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on Amarin’s investor relations website and may include social media channels. The contents of Amarin’s website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Securities and Exchange Act of 1934, as amended.

Amarin Contact Information
Investor & Media Inquiries:
Mark Marmur
VP, Global Corporate Communications & Investor Relations
Amarin Corporation plc
PR@amarincorp.com

FAQ

What is the ratio change announced by Amarin (AMRN) for its ADR program?

Amarin announced a 1-for-20 ratio change, where one ADS will represent twenty ordinary shares, effective April 11, 2025.

Why is Amarin (AMRN) implementing this ADR ratio change?

The ratio change aims to increase the ADS market price to comply with Nasdaq's $1.00 minimum bid requirement and maintain listing on The Nasdaq Capital Market.

What happens to fractional shares in Amarin's (AMRN) ADR ratio change?

Fractional ADS entitlements will be aggregated and sold by the depositary bank, with net proceeds distributed to affected ADS holders.

How will existing Amarin (AMRN) ADS holders be affected by the ratio change?

Uncertificated ADS holders will see automatic conversion, while certificated ADS holders must surrender their certificates for cancellation to receive new ones.