ADR Ratio Change

Rhea-AI Summary

Biodexa Pharmaceuticals PLC (Nasdaq: BDRX) announces a ratio change on its American Depositary Receipts (ADR) effective October 4, 2024. The new ratio will be 1 ADR representing 10,000 ordinary shares, changed from 1 ADR representing 400 ordinary shares.

ADR holders will be required to exchange their existing ADRs, receiving 1 new ADR for every 25 old ADRs. This change will have the same effect as a 1-for-25 reverse ADR split. The company's ordinary shares will not be affected by this change.

The ratio change aims to bring Biodexa's ADR price into compliance with Nasdaq's $1.00 minimum bid price requirement, although the company cannot guarantee its effectiveness in achieving this goal.

Positive

• Potential compliance with Nasdaq's $1.00 minimum bid price requirement
• No direct impact on ordinary shares

Negative

• Effective 1-for-25 reverse split for ADR holders
• No guarantee of achieving compliance with Nasdaq requirements
• Possible indication of struggling share price

Insights

Financial Analyst

This ADR ratio change is a strategic move by Biodexa to maintain Nasdaq compliance, but it's essentially a cosmetic change with no fundamental impact on the company's value. The 1:25 reverse split equivalent aims to boost the ADR price above the $1 threshold, a common tactic for struggling biotech firms. However, this doesn't address underlying issues causing the low share price. Investors should be cautious, as reverse splits often signal financial distress and can lead to further price declines. The lack of details on pipeline progress or financial health is concerning. This move may buy time, but without significant operational improvements, it's merely kicking the can down the road.

Market Research Analyst

Biodexa's ADR ratio change reflects broader challenges in the biotech sector. With a focus on acquisitions, the company is likely struggling with R&D costs and pipeline development. This move suggests organic growth prospects in the near term. The market often perceives such actions negatively, potentially leading to increased volatility and reduced investor confidence. However, if Biodexa can leverage this compliance-saving measure to secure additional funding or strategic partnerships, it could provide a foundation for future growth. Investors should monitor for concrete steps towards value creation post-ratio change, such as M&A activity or significant clinical progress.

September 19, 2024

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 four hundred (400) ordinary shares, to the new ratio of one (1) ADR representing ten thousand (10,000) ordinary shares (the "Ratio Change"). The effective date of the Ratio Change is expected to be October 4,2024.

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: 59564R807) for every twenty-five (25) old ADRs (Old CUSIP: 59564R708). 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-twenty-five 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.

Biodexa Pharmaceuticals PLC

Stephen Stamp, CEO, CFO

Tel: +44 (0)29 2048 0180

www.biodexapharma.com

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.

FAQ

What is the new ADR ratio for Biodexa Pharmaceuticals (BDRX) after October 4, 2024?

The new ADR ratio for Biodexa Pharmaceuticals (BDRX) will be 1 ADR representing 10,000 ordinary shares, effective October 4, 2024.

How will the ADR ratio change affect Biodexa (BDRX) shareholders?

ADR holders of Biodexa (BDRX) will need to exchange their existing ADRs, receiving 1 new ADR for every 25 old ADRs. This is equivalent to a 1-for-25 reverse ADR split. Ordinary shareholders will not be affected.

Why is Biodexa Pharmaceuticals (BDRX) changing its ADR ratio?

Biodexa Pharmaceuticals (BDRX) is changing its ADR ratio to attempt to bring its ADR price into compliance with Nasdaq's $1.00 minimum bid price requirement.

When will the ADR ratio change for Biodexa Pharmaceuticals (BDRX) take effect?

The ADR ratio change for Biodexa Pharmaceuticals (BDRX) is expected to take effect on October 4, 2024.