TCBP to Implement ADS Ratio Change
TC BioPharm (NASDAQ: TCBP) announced a significant change in its American Depositary Shares (ADS) ratio, effective February 10, 2025. The ratio will shift from 1 ADS representing 200 ordinary shares to 1 ADS representing 4,000 ordinary shares. This adjustment effectively implements a 1-for-20 reverse ADS split.
The change requires ADS holders to exchange every 20 ADSs for 1 new ADS, with The Bank of New York Mellon managing the exchange process. No ordinary shares will be issued or canceled, and TCBP will continue trading on Nasdaq Capital Market. Fractional new ADSs will be aggregated and sold, with net proceeds distributed to affected holders.
While the ADS trading price is expected to increase proportionally, the company provides no guarantees regarding the post-change trading price relationship.
TC BioPharm (NASDAQ: TCBP) ha annunciato un cambiamento significativo del suo rapporto di American Depositary Shares (ADS), che entrerà in vigore il 10 febbraio 2025. Il rapporto passerà da 1 ADS che rappresenta 200 azioni ordinarie a 1 ADS che rappresenta 4.000 azioni ordinarie. Questo adeguamento implementa sostanzialmente uno split inverso ADS 1 per 20.
Il cambiamento richiede che i detentori di ADS scambino ogni 20 ADS per 1 nuovo ADS, con The Bank of New York Mellon che gestirà il processo di scambio. Non verranno emesse né cancellate azioni ordinarie e TCBP continuerà a essere quotata al Nasdaq Capital Market. Le nuove ADS frazionarie saranno aggregate e vendute, con i proventi netti distribuiti ai detentori interessati.
Sebbene si prevede che il prezzo di trading delle ADS aumenti in modo proporzionale, l'azienda non offre garanzie riguardo la relazione di prezzo di trading post-cambiamento.
TC BioPharm (NASDAQ: TCBP) anunció un cambio significativo en la relación de sus American Depositary Shares (ADS), que entrará en vigor el 10 de febrero de 2025. La relación cambiará de 1 ADS que representa 200 acciones ordinarias a 1 ADS que representa 4,000 acciones ordinarias. Este ajuste implementa efectivamente una división inversa de ADS de 1 por 20.
El cambio requiere que los tenedores de ADS intercambien cada 20 ADS por 1 nuevo ADS, con The Bank of New York Mellon gestionando el proceso de intercambio. No se emitirán ni cancelarán acciones ordinarias, y TCBP continuará cotizando en el Nasdaq Capital Market. Las nuevas ADS fraccionarias se agregarán y venderán, y los ingresos netos se distribuirán a los tenedores afectados.
Si bien se espera que el precio de negociación de las ADS aumente proporcionalmente, la empresa no ofrece garantías con respecto a la relación de precios de negociación después del cambio.
TC BioPharm (NASDAQ: TCBP)는 2025년 2월 10일부터 시행되는 미국 예탁 주식(ADS) 비율의 중대한 변화를 발표했습니다. 비율은 200주를 대표하는 1 ADS에서 4,000주를 대표하는 1 ADS로 변경됩니다. 이 조정은 1대 20의 역 ADS 분할을 효과적으로 시행하는 것입니다.
변경 사항에 따라 ADS 보유자는 20 ADS마다 1개의 새로운 ADS로 교환해야 하며, 뉴욕 멜론 은행이 교환 과정을 관리합니다. 일반 주식은 발행되거나 취소되지 않으며 TCBP는 계속해서 나스닥 자본 시장에서 거래됩니다. 새로운 분할 ADS는 집합되어 판매되며, 순수익은 해당 보유자에게 분배됩니다.
ADS 거래 가격은 비례적으로 증가할 것으로 예상되지만, 회사는 변경 후 거래 가격 관계에 대한 보장을 제공하지 않습니다.
TC BioPharm (NASDAQ: TCBP) a annoncé un changement significatif de son ratio d'American Depositary Shares (ADS), qui entrera en vigueur le 10 février 2025. Le ratio passera de 1 ADS représentant 200 actions ordinaires à 1 ADS représentant 4 000 actions ordinaires. Cet ajustement met en œuvre un fractionnement inverse des ADS sur une base de 1 pour 20.
Le changement nécessite que les détenteurs d'ADS échangent chaque 20 ADS contre 1 nouvel ADS, la Banque de New York Mellon gérant le processus d'échange. Aucune action ordinaire ne sera émise ni annulée, et TCBP continuera d'être négocié sur le Nasdaq Capital Market. Les nouvelles ADS fractionnaires seront regroupées et vendues, les produits nets étant distribués aux détenteurs concernés.
Bien que le prix de négociation des ADS devrait augmenter proportionnellement, la société ne garantit pas de relation de prix après le changement.
TC BioPharm (NASDAQ: TCBP) gab eine bedeutende Änderung des Verhältnisses seiner American Depositary Shares (ADS) bekannt, die am 10. Februar 2025 in Kraft tritt. Das Verhältnis ändert sich von 1 ADS, die 200 Stammaktien repräsentiert, zu 1 ADS, die 4.000 Stammaktien repräsentiert. Diese Anpassung führt effektiv zu einem 1-zu-20-Rücksplit der ADS.
Die Änderung erfordert, dass ADS-Inhaber jeweils 20 ADS gegen 1 neue ADS eintauschen, wobei die Bank of New York Mellon den Austauschprozess verwaltet. Es werden keine Stammaktien ausgegeben oder annulliert, und TCBP wird weiterhin am Nasdaq Capital Market gehandelt. Fractional New ADS wird aggregiert und verkauft, wobei der Nettoerlös an die betroffenen Inhaber verteilt wird.
Obwohl erwartet wird, dass der Handelspreis der ADS proportional steigt, gibt das Unternehmen keine Garantien bezüglich der Preisbeziehung nach der Änderung.
- None.
- Implementation of 1-for-20 reverse ADS split, typically indicating share price challenges
- No guarantee provided for proportional price maintenance post-ratio change
- Potential loss of value for investors through fractional share liquidation
Insights
This ADS ratio adjustment represents a significant technical maneuver by TC BioPharm, effectively implementing a 1:20 reverse split on their ADSs while maintaining their Nasdaq listing. The restructuring from 1:200 to 1:4000 ordinary shares per ADS warrants careful analysis, particularly given TCBP's current
The timing of this move suggests a defensive strategy, typically employed when companies face challenges maintaining exchange listing requirements or seek to elevate their trading price artificially. Historical data shows that such ratio changes, while temporarily boosting share prices, rarely address underlying fundamental challenges. For existing shareholders, several key implications emerge:
- Trading dynamics will shift as the price adjusts proportionally higher, potentially affecting liquidity patterns
- Transaction costs may increase for smaller investors due to higher per-share prices
- Fractional share settlements could trigger unwanted taxable events for some holders
The company's careful wording regarding post-change trading prices suggests awareness of the limitations of such technical adjustments. While this move buys time and potentially maintains listing compliance, investors should recognize that ratio changes historically have a mixed track record in creating sustainable value. The lack of impact on underlying ordinary shares emphasizes this is primarily a technical adjustment rather than a fundamental business change.
The ADS Ratio Change will have the same effect as a 1-for-20 reverse ADS split for the ADS holders. The ADS Ratio Change will not impact the Company's underlying ordinary shares, and no ordinary shares will be issued or canceled in connection with the ADS Ratio Change.
On the Effective Date, holders of the ADSs will be required to surrender and exchange every twenty (20) ADSs, held for one (1) new ADS. The Bank of New York Mellon, as the depositary bank for the Company's ADS program (the "Depositary"), will arrange for the exchange. The ADSs will continue to be traded on Nasdaq Capital Market under the symbol "TCBP."
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. 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 before the change.
About TC BioPharm (Holdings) PLC
TC BioPharm is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing gamma-delta T-cell therapies for cancer treatment with human efficacy data in acute myeloid leukemia. Gamma-delta T cells are naturally occurring immune cells that embody properties of both the innate and adaptive immune systems and can intrinsically differentiate between healthy and diseased tissue.
TC BioPharm is the leader in developing gamma-delta T cell therapies and the first company to conduct phase II/pivotal clinical studies in oncology. The Company is conducting two investigator-initiated clinical trials for its unmodified gamma-delta T cell product line - Phase 2b/3 pivotal trial in the treatment of acute myeloid leukemia using the Company's proprietary allogeneic CryoTC technology to provide frozen product to clinics worldwide.
Forward-Looking Statements for TC BioPharm
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Current Report on Form 8-K that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company's intent or ability to affect any budget savings or execute on any M&A or capital raising strategy. These statements are based on management's current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For other important factors that could cause actual results to differ materially from the forward-looking statements in this Current Report on Form 8-K, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and our other reports filed with the SEC, all of which is available on the Company's Investor Relations website at www.tcbiopharm.com and on the SEC website at www.sec.gov. All forward-looking statements reflect the Company's beliefs and assumptions only as of the date of this press release. The Company undertakes no obligation to update forward-looking statements to reflect future events or circumstances.
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SOURCE TC BioPharm
FAQ
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