Kitov Pharmaceuticals Hldgs L Sponsored ADR (KTOV)

[nsomniyak]

My first reaction was that this was relatively benign, as the ratio was only 6:10 instead of 1:100 or 1:1000.

However, I can see now that unlike a normal reverse split, where the size of the pie does not change but the slices just get bigger, changing the number of common shares backing each ADS is a HARD 40% cut in value.

Upon further review, since the number of commmon shares does not change but the number backing each ADS goes from 10 to 6, this now appears to me as a transfer of assets from holders of the ADS to the direct holders of common shares.

It sucks.