This seems extremely positive—-each ADR is worth 20 regular shares(instead of two)and OS seems to have gone from 8mm to 800k with essential 10-1.
What am I missing?
Midatech Pharma (AIM: MTPH; Nasdaq: MTP), the R&D company focused on delivering innovative oncology and rare disease products to patients, announces a ratio change on its American Depositary Receipts ("ADR") from one (1) ADR representing two (2) ordinary shares, to the new ratio of one (1) ADR representing twenty (20) ordinary shares (the “Ratio Change”). The effective date of the Ratio Change is expected to be 8 April 2019.
Pursuant to the Ratio Change, effective 8 April 2019, ADR holders will be required on a mandatory basis to surrender their ADRs for cancellation and exchange to receive (1) new ADRs (New CUSIP: 59564R203) for every ten (10) old ADRs (Old CUSIP: 59564R104). No fractional ADRs will be allocated. The aggregate fractions, if any, will be sold and the net proceeds will be distributed to the entitled DR holder. The Company’s Depositary, Deutsche Bank Trust Company Americas, will contact DR 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-10 reverse ADR split. The ordinary shares of Midatech 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, though Midatech can give no assurance that the Ratio Change will be effective in achieving this goal.
The number of ADRs in issue on 18 March 2019 was 8,293,832.
