(Boursier.com) — DBV Technologiesa clinical-stage biopharmaceutical company specializing in treatment options for food allergies and other immunological conditions with unmet medical needs, announced plans to change the ratio of its American Depositary Shares to its common stock, each with a nominal value of 0.10 euros (10 euro cents) per share, and traded on segment B of Euronext.
The Company plans to change the ADS ratio from the current ADS ratio of one ADS to one-half (1/2) of one Ordinary Share to a new ADS ratio of one ADS to one Ordinary Share.
The ADS Ratio Change is expected to be effective on June 3, 2024.
The ADS Ratio Change is intended to enable the Company to return to compliance with Nasdaq’s requirement of a floor price for its ADSs above US$1.
For registered holders of ADSs, the ADS Ratio Change will have the effect of halving the number of ADSs.
On the Effective Date, ADS Holders held in certificate form will be required to surrender their certified ADSs to Citibank NA for cancellation, and will receive one new ADS in exchange for two existing surrendered ADSs.
Uncertified ADS Holders in the Direct Registration System (“DRS”) and The Depository Trust Company (“DTC”) will have their ADSs automatically exchanged and will not need to take any action. The exchange of two existing ADSs for one new ADS will take place automatically on the Effective Date, with the Old ADSs being canceled and the New ADSs issued by the Depositary Bank.
The New ADSs will continue to trade on the Nasdaq Stock Market under the symbol “DBVT”.
No fraction of New ADSs will be issued in connection with the ADS Ratio Change. Fractional rights to New ADSs will be aggregated and sold by the Depositary Bank, and the net proceeds from the sale of such fractional rights (after deduction of fees, taxes and expenses) will be distributed in cash among the relevant ADS Holders, per the Custodian Bank.
The ADS Ratio Change will have no impact on the Ordinary Shares, and no Ordinary Shares will be issued or canceled in connection with the ADS Ratio Change.
As a result of the ADS Ratio Change, the trading price of the New ADSs is expected to increase proportionately, although the Company cannot guarantee that the trading price of the New ADSs will be equal to or greater than twice the trading price of the Old ADSs.