Evaxion announces extension to January 14, 2025, of plan to implement ADS ratio change
Evaxion Biotech (NASDAQ: EVAX) has announced an extension to its planned American Depositary Shares (ADS) ratio change. The effective date has been moved to January 14, 2025, one day later than initially planned, due to Nasdaq Capital Markets' closure on January 9 in observance of President Jimmy Carter's passing.
The ADS ratio will change from 1:10 (one ADS representing ten ordinary shares) to 1:50 (one ADS representing fifty ordinary shares). This change will function similarly to a one-for-five reverse ADS split and aims to enhance ADS liquidity. Holders of uncertificated ADSs will have their shares automatically exchanged, while those with certificated ADSs must surrender them for cancellation and replacement. The stock will continue trading under 'EVAX' on Nasdaq, with fractional ADSs being sold and proceeds distributed to holders.
Evaxion Biotech (NASDAQ: EVAX) ha annunciato un'estensione del cambio del rapporto delle sue American Depositary Shares (ADS) programmate. La data di efficacia è stata spostata al 14 gennaio 2025, un giorno dopo rispetto a quanto inizialmente previsto, a causa della chiusura dei mercati capitali Nasdaq il 9 gennaio in ossequio alla scomparsa del presidente Jimmy Carter.
Il rapporto ADS cambierà da 1:10 (un ADS rappresenta dieci azioni ordinarie) a 1:50 (un ADS rappresenta cinquanta azioni ordinarie). Questo cambiamento funzionerà in modo simile a uno split inverso di ADS uno a cinque e mira a migliorare la liquidità degli ADS. I detentori di ADS non certificati vedranno le loro azioni automaticamente scambiate, mentre coloro che possiedono ADS certificate dovranno consegnarle per la cancellazione e la sostituzione. Le azioni continueranno a essere negoziate sotto il simbolo 'EVAX' su Nasdaq, con ADS frazionari che saranno venduti e i proventi distribuiti ai detentori.
Evaxion Biotech (NASDAQ: EVAX) ha anunciado una extensión del cambio en la relación de sus American Depositary Shares (ADS) planeado. La fecha de efectividad se ha trasladado al 14 de enero de 2025, un día más tarde de lo inicialmente previsto, debido al cierre de Nasdaq Capital Markets el 9 de enero en conmemoración del fallecimiento del presidente Jimmy Carter.
La relación de ADS cambiará de 1:10 (un ADS representa diez acciones ordinarias) a 1:50 (un ADS representa cincuenta acciones ordinarias). Este cambio funcionará de manera similar a una escisión inversa de ADS uno a cinco y tiene como objetivo mejorar la liquidez de los ADS. Los tenedores de ADS no certificadas tendrán sus acciones intercambiadas automáticamente, mientras que aquellos con ADS certificadas deben entregarlas para su cancelación y reemplazo. Las acciones continuarán cotizando bajo 'EVAX' en Nasdaq, con ADS fraccionarios que se venderán y los ingresos distribuidos a los tenedores.
Evaxion Biotech (NASDAQ: EVAX)는 예정된 미국 예탁 주식 (ADS) 비율 변경을 연장한다고 발표했습니다. 발효 날짜는 2025년 1월 14일로, 당초 계획보다 하루 연기되었으며, 이는 1월 9일 나스닥 자본 시장이 지미 카터 대통령의 서거를 기념하여 휴장하기 때문입니다.
ADS 비율은 1:10 (한 ADS가 열 개의 보통주를 나타냄)에서 1:50 (한 ADS가 서른 개의 보통주를 나타냄)로 변경됩니다. 이 변경은 1대 5의 역 ADS 분할과 유사하게 작용하며 ADS 유동성을 제고할 목적입니다. 보통주를 가지지 않은 ADS 보유자는 자산이 자동으로 교환되고, 인증된 ADS 보유자는 이를 취소하고 교체하기 위해 제출해야 합니다. 주식은 계속해서 나스닥에서 'EVAX'로 거래되며, 분할된 ADS는 판매되고 그 수익은 보유자들에게 분배됩니다.
Evaxion Biotech (NASDAQ: EVAX) a annoncé une extension du changement de rapport prévu pour ses American Depositary Shares (ADS). La date d'entrée en vigueur a été décalée au 14 janvier 2025, un jour plus tard que prévu initialement, en raison de la fermeture des marchés des capitaux Nasdaq le 9 janvier en raison du décès du président Jimmy Carter.
Le ratio des ADS changera de 1:10 (un ADS représentant dix actions ordinaires) à 1:50 (un ADS représentant cinquante actions ordinaires). Ce changement agira de manière similaire à un fractionnement inversé d'ADS de un pour cinq et vise à améliorer la liquidité des ADS. Les détenteurs d'ADS non certifiées verront leurs actions échangées automatiquement, tandis que ceux ayant des ADS certifiées doivent les remettre pour annulation et remplacement. Les actions continueront à être négociées sous 'EVAX' sur Nasdaq, avec des ADS fractionnaires qui seront vendues et les recettes distribuées aux détenteurs.
Evaxion Biotech (NASDAQ: EVAX) hat eine Erweiterung der geplanten Änderung des Verhältnisses der American Depositary Shares (ADS) bekannt gegeben. Das Wirksamkeitsdatum wurde auf den 14. Januar 2025 verschoben, einen Tag später als zunächst geplant, aufgrund der Schließung der Nasdaq Capital Markets am 9. Januar anlässlich des Todes von Präsident Jimmy Carter.
Das ADS-Verhältnis wird von 1:10 (ein ADS repräsentiert zehn Stammaktien) auf 1:50 (ein ADS repräsentiert fünfzig Stammaktien) geändert. Diese Änderung funktioniert ähnlich wie ein Reverse-ADS-Split von eins zu fünf und hat zum Ziel, die Liquidität der ADS zu verbessern. Inhaber von nicht zertifizierten ADS erhalten ihre Aktien automatisch im Austausch, während diejenigen mit zertifizierten ADS diese zur Stornierung und Ersetzung einreichen müssen. Die Aktien werden weiterhin unter dem Symbol 'EVAX' an der Nasdaq gehandelt, wobei Bruchstücke von ADS verkauft und die Erlöse an die Inhaber verteilt werden.
- ADS ratio change aims to improve trading liquidity
- Implementation of effective 1:5 reverse ADS split could be viewed as dilutive
- Mandatory surrender and exchange process may cause temporary trading disruption
Insights
The announced ADS ratio change from 1:10 to 1:50 is essentially a 1-for-5 reverse split, a technical adjustment that warrants careful analysis. This move by Evaxion appears primarily aimed at maintaining Nasdaq listing compliance and potentially improving trading dynamics. The timing shift due to President Carter's memorial observance is procedurally insignificant.
The key technical implications include:
- Current holders will receive 1 new ADS for every 5 existing ADSs
- The stock price should theoretically multiply by 5x post-adjustment
- Trading liquidity could be impacted as the total number of ADSs outstanding will decrease
While reverse splits are often viewed negatively as they typically follow significant share price declines, this 1:5 ratio is relatively modest compared to more aggressive reverse splits. For EVAX, with a micro-cap status of just
The fractional share treatment through aggregation and cash distribution is standard practice but could result in minor position adjustments for some holders. The real test will be whether the adjusted price level can attract institutional interest and support improved trading dynamics.
COPENHAGEN, Denmark, January 10, 2025 - Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, today announced that it is amending the effective date for its plans to change the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares, DKK 1 nominal value (the “ADS ratio”), from the current one (1) ADS representing ten (10) ordinary share to a new ADS ratio of one (1) ADS representing fifty (50) ordinary shares (the “ADS ratio change”).
The ADS ratio change is expected to become effective on or about January 14, 2025, U.S. Eastern Time (the “effective date”). Previously, Evaxion planned for the ADS ratio change to become effective on or about January 13, 2025. The date has been extended by one day as Nasdaq Capital Markets was closed on January 9, 2025, in order to observe the passing of President Jimmy Carter. This was not known when Evaxion announced the initial effective date.
For the company's ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split and is intended to further support the liquidity in the company’s ADSs.
On the effective date, registered holders of the company’s ADSs held in certificated form will be required on a mandatory basis to surrender their certificated ADSs to The Bank of New York Mellon, the depositary bank (the “depositary”), for cancellation and will receive 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) will have their ADSs automatically exchanged and need not take any action. The exchange of every five (5) then-held (existing) ADSs for one (1) new ADS will occur automatically at the effective date, with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank. The company’s ADSs will continue to be traded on the Nasdaq Capital Market under the ticker symbol “EVAX.”
No fractional new ADSs will be 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, although 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 geopolitical 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) and when does it take effect?
How will EVAX's ADS ratio change affect existing shareholders?
What happens to fractional shares in EVAX's ADS ratio change?
Why was EVAX's ADS ratio change delayed to January 14, 2025?
