Evaxion announces completion of ADS ratio change
Evaxion Biotech (NASDAQ: EVAX) has completed its previously announced ADS ratio change effective January 14, 2025. The ratio has been modified from 1 ADS representing 10 ordinary shares to 1 ADS representing 50 ordinary shares, equivalent to a one-for-five reverse ADS split.
The change was automatically implemented, with existing ADSs being cancelled and new ones issued by The Bank of New York Mellon. Holders of certificated ADSs were required to surrender their certificates for exchange, while uncertificated ADSs in DRS and DTC were automatically converted. No fractional ADSs were issued; instead, fractional entitlements will be sold and proceeds distributed to affected holders.
The company continues trading on Nasdaq under 'EVAX'. While the ADS trading price is expected to increase proportionally, Evaxion provided no assurance regarding the post-change trading price or liquidity effects.
Evaxion Biotech (NASDAQ: EVAX) ha completato la modifica del rapporto degli ADS precedentemente annunciata, con effetto dal 14 gennaio 2025. Il rapporto è stato modificato da 1 ADS che rappresenta 10 azioni ordinarie a 1 ADS che rappresenta 50 azioni ordinarie, equivalente a uno split inverso di ADS uno per cinque.
Il cambiamento è stato implementato automaticamente, con gli ADS esistenti cancellati e nuovi emessi da The Bank of New York Mellon. I detentori di ADS certificati dovevano riconsegnare i loro certificati per lo scambio, mentre gli ADS non certificati in DRS e DTC sono stati convertiti automaticamente. Non sono stati emessi ADS frazionari; invece, i diritti frazionari saranno venduti e i proventi distribuiti ai titolari interessati.
L'azienda continua a trattare su Nasdaq con il simbolo 'EVAX'. Sebbene si preveda un aumento proporzionale del prezzo di trading degli ADS, Evaxion non ha fornito alcuna garanzia riguardo al prezzo di trading post-cambiamento o agli effetti sulla liquidità.
Evaxion Biotech (NASDAQ: EVAX) ha completado el cambio de la relación de ADS previamente anunciado, efectivo el 14 de enero de 2025. La relación ha sido modificada de 1 ADS representando 10 acciones ordinarias a 1 ADS representando 50 acciones ordinarias, equivalente a un desdoblamiento inverso de ADS uno por cinco.
El cambio se implementó automáticamente, siendo cancelados los ADS existentes y emitidos nuevos por The Bank of New York Mellon. Los titulares de ADS certificados debían entregar sus certificados para el intercambio, mientras que los ADS no certificados en DRS y DTC se convirtieron automáticamente. No se emitieron ADS fraccionarios; en cambio, los derechos fraccionarios se venderán y los ingresos se distribuirán a los titulares afectados.
La empresa continúa cotizando en Nasdaq con el símbolo 'EVAX'. Si bien se espera que el precio de negociación de los ADS aumente proporcionalmente, Evaxion no proporcionó ninguna garantía sobre el precio de negociación posterior al cambio o los efectos en la liquidez.
Evaxion Biotech (NASDAQ: EVAX)는 2025년 1월 14일부터 적용되는 ADS 비율 변경을 완료했습니다. 비율은 1 ADS가 10주를 대표하도록 변경된 것을 1 ADS가 50주를 대표하도록 변경되어, 1 대 5의 역 분할로 간주됩니다.
변경 사항은 자동으로 시행되었으며, 기존 ADS는 취소되고 새로운 ADS가 The Bank of New York Mellon에 의해 발행되었습니다. 인증된 ADS 보유자는 교환을 위해 인증서를 제출해야 했고, DRS 및 DTC의 비인증 ADS는 자동으로 변환되었습니다. 분할 ADS는 발행되지 않았으며, 대신 분할 권리는 판매되고 수익이 영향을 받는 보유자에게 분배됩니다.
회사는 'EVAX'라는 기호로 나스닥에서 계속 거래되고 있습니다. ADS 거래가 비례적으로 증가할 것으로 예상되지만, Evaxion은 변경 후 거래 가격이나 유동성 효과에 대한 보장을 제공하지 않았습니다.
Evaxion Biotech (NASDAQ: EVAX) a terminé le changement de ratio des ADS précédemment annoncé, effectif à partir du 14 janvier 2025. Le ratio a été modifié de 1 ADS représentant 10 actions ordinaires à 1 ADS représentant 50 actions ordinaires, ce qui équivaut à un split inversé d'un pour cinq.
Le changement a été mis en œuvre automatiquement, avec les ADS existants annulés et de nouveaux émis par The Bank of New York Mellon. Les détenteurs d'ADS certifiés ont dû remettre leurs certificats pour échange, tandis que les ADS non certifiés en DRS et DTC ont été convertis automatiquement. Aucun ADS fractionnaire n'a été émis ; à la place, les droits fractionnaires seront vendus et les recettes distribuées aux titulaires concernés.
L'entreprise continue de se négocier sur Nasdaq sous le symbole 'EVAX'. Bien que le prix de négociation des ADS devrait augmenter proportionnellement, Evaxion n'a fourni aucune garantie concernant le prix de négociation après le changement ou les effets sur la liquidité.
Evaxion Biotech (NASDAQ: EVAX) hat die zuvor angekündigte Änderung des ADS-Verhältnisses zum 14. Januar 2025 abgeschlossen. Das Verhältnis wurde von 1 ADS, das 10 ordentlichen Aktien entspricht, auf 1 ADS, das 50 ordentlichen Aktien entspricht, geändert, was einem eins zu fünf umgekehrten ADS-Split entspricht.
Die Änderung wurde automatisch umgesetzt, wobei bestehende ADS storniert und neue von The Bank of New York Mellon ausgegeben wurden. Inhaber von zertifizierten ADS mussten ihre Zertifikate zur Umtausch einreichen, während nicht zertifizierte ADS in DRS und DTC automatisch umgewandelt wurden. Es wurden keine fraktionalen ADS ausgegeben; stattdessen werden fraktionale Ansprüche verkauft und die Erlöse an die betroffenen Inhaber verteilt.
Das Unternehmen wird weiterhin unter 'EVAX' an der Nasdaq gehandelt. Obwohl erwartet wird, dass der Handelspreis der ADS proportional steigt, gab Evaxion keine Garantie für den Handelspreis oder die Liquidität nach der Änderung.
- Potential for improved ADS liquidity through ratio adjustment
- Maintains Nasdaq Capital Market listing
- Possible shareholder impact from fractional ADS liquidation
- No guarantee of proportional price increase or improved liquidity
- Additional administrative burden for certificated ADS holders
Insights
The ADS ratio change from 1:10 to 1:50 effectively implements a 1-for-5 reverse split for Evaxion Biotech's ADSs. For micro-cap biotech companies like Evaxion (
The consolidation should theoretically multiply the ADS price by 5, potentially moving it away from penny stock territory. However, the extremely low market capitalization remains concerning, as it indicates significant market skepticism about the company's AI-powered vaccine platform. The mandatory consolidation and cash settlement of fractional shares could lead to increased selling pressure from holders forced to liquidate partial positions.
Key Technical Points:
- No direct change to company valuation or shareholder equity percentages
- Potential improvement in trading spreads and institutional accessibility
- Risk of continued price volatility despite higher nominal share price
The timing and nature of this corporate action raises several red flags. Micro-cap companies typically resort to reverse splits when facing delisting risks or struggling with extremely low share prices. With Evaxion's market cap at just
The language around "supporting liquidity" should be viewed skeptically - historical data shows reverse splits often precede further price deterioration, especially in the biotech sector. The mandatory nature of the conversion and the cash settlement mechanism for fractional shares could trigger increased selling pressure.
For context, AI-powered biotech platforms require substantial capital for development and validation. The current market capitalization suggests severe investor skepticism about either the technology's viability or the company's ability to commercialize it effectively. This technical adjustment does nothing to address these fundamental concerns.
COPENHAGEN, Denmark, January 14, 2025 - Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion” or the “Company”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, today announced that the Company’s previously disclosed ratio change of its American Depositary Shares (“ADSs”) to its ordinary shares, DKK 1 nominal value (the “ADS Ratio”), has been made effective.
The ratio has changed from one (1) ADS representing ten (10) ordinary shares to a new ADS ratio of one (1) ADS representing fifty (50) ordinary shares (the “ADS Ratio Change”). The ADS Ratio Change became effective on January 14, 2025 (the “Effective Date”). For the Company's ADS holders, the change in the ADS Ratio has the same effect as a one-for-five reverse ADS split and is intended to further support the liquidity in the Company’s ADSs.
The exchange of one (1) new ADS for every five (5) then-held (existing) ADSs occurred automatically on the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by The Bank of New York Mellon, the depositary bank (the “Depositary”).
Registered holders of the Company’s ADSs held in certificated form were required on a mandatory basis to surrender their certificated ADSs to the Depositary for cancellation and received one (1) new ADS in exchange for every five (5) existing ADSs then-held. Holders of uncertificated ADSs in the Direct Registration System (DRS) and The Depository Trust Company (DTC) had their ADSs cancelled and automatically exchanged, receiving one (1) new ADS for every five (5) existing ADSs then-held. The Company’s ADSs continue to be traded on The Nasdaq Capital Market under the ticker symbol “EVAX.”
The ADS Ratio Change affects all shareholders uniformly and will not alter any shareholder’s percentage interest in the Company’s equity, except to the extent that the ratio change would have resulted in a shareholder owning fractional ADSs. No fractional new ADSs were issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the Depositary, and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses) will be distributed to the applicable ADS holders by the Depositary.
As a result of the ADS Ratio Change, the ADS trading price is expected to increase proportionally. However, the Company can give no assurance that the ADS trading price after the ADS Ratio Change will be proportionally equal to or greater than the previous ADS trading price prior to the change or that the Ratio Change will have any effect on the liquidity in the Company’s ADSs.
Contact information
Evaxion Biotech A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion.ai
About EVAXION
Evaxion Biotech A/S is a pioneering TechBio company based upon its AI platform, AI-Immunology™. Evaxion’s proprietary and scalable AI prediction models harness the power of artificial intelligence to decode the human immune system and develop novel immunotherapies for cancer, bacterial diseases, and viral infections. Based upon AI-Immunology™, Evaxion has developed a clinical-stage oncology pipeline of novel personalized vaccines and a preclinical infectious disease pipeline in bacterial and viral diseases with high unmet medical needs. Evaxion is committed to transforming patients’ lives by providing innovative and targeted treatment options. For more information about Evaxion and its groundbreaking AI-Immunology™ platform and vaccine pipeline, please visit our website.
Forward-looking statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “target,” “believe,” “expect,” “hope,” “aim,” “intend,” “may,” “might,” “anticipate,” “contemplate,” “continue,” “estimate,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could,” and other words and terms of similar meaning identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including, but not limited to, risks related to: our financial condition and need for additional capital; our development work; cost and success of our product development activities and preclinical and clinical trials; commercializing any approved pharmaceutical product developed using our AI platform technology, including the rate and degree of market acceptance of our product candidates; our dependence on third parties including for conduct of clinical testing and product manufacture; our inability to enter into partnerships; government regulation; protection of our intellectual property rights; employee matters and managing growth; our ADSs and ordinary shares, the impact of international economic, political, legal, compliance, social and business factors, including inflation, and the effects on our business from other significant geo-political and macro-economic events; and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the risk factors included in our most recent Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission (SEC), which are available at www.sec.gov. We do not assume any obligation to update any forward-looking statements except as required by law.
FAQ
What is the new ADS ratio for Evaxion Biotech (EVAX) after January 14, 2025?
How does the EVAX ADS ratio change affect existing shareholders?
What happens to fractional ADSs in Evaxion's ratio change?
Will EVAX's ADS trading price change after the ratio adjustment?
