Addex Announces Plan to Implement ADS Ratio Change
October 06 2023 - 4:00PM
Addex Announces Plan to Implement ADS Ratio Change
Ad Hoc Announcement Pursuant to Art. 53
LR
Geneva, Switzerland, October 6, 2023
- Addex Therapeutics (SIX and Nasdaq: ADXN), a
clinical-stage pharmaceutical company pioneering allosteric
modulation-based drug discovery and development, today announced
that it plans to change the ratio of its American Depositary Shares
(“ADSs”) to its ordinary shares (the “ADS Ratio”) from the current
ADS Ratio of one (1) ADS to six (6) ordinary shares to a new ADS
Ratio of one (1) ADS to one hundred and twenty (120) ordinary
shares (the “ADS Ratio Change”). The Company anticipates that the
ADS Ratio Change will be effective on or about October 23, 2023
(the “Effective Date”).
For the Company’s ADS holders, the change in the
ADS Ratio will have the same effect as a one (1) for twenty (20)
reverse ADS split and is intended to enable the Company to regain
compliance with the Nasdaq minimum bid price requirement. On the
Effective Date, holders of ADSs in the Direct Registration System
(“DRS”) and in the Depository Trust Company (“DTC”) will have their
ADSs automatically exchanged and need not take any action. The
exchange of every twenty (20) 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 reached an agreement with the
depositary bank to pay, on behalf of the ADS holders, the
depositary fees related to the cancellation and issuance of new
ADSs in connection with the ADS Ratio Change.
No fractional new ADSs will be issued in
connection with the ADS Ratio Change. Instead, fractional
entitlements to new ADSs will be aggregated and sold by the
depositary bank 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 bank.
The Company’s ADSs will continue to be traded on
the Nasdaq Capital Market under the ticker symbol “ADXN.” The ADS
Ratio Change will have no impact on the Company’s underlying
ordinary shares and no ordinary shares will be issued or cancelled
in connection with the ADS Ratio Change.
As a result of the change in the ADS Ratio, the
Company’s 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 equal to or greater than
twenty (20) times the ADS trading price before the change.
About Addex
Therapeutics: Addex Therapeutics is a clinical-stage
pharmaceutical company focused on the development and
commercialization of an emerging class of novel orally available,
small molecule drugs known as allosteric modulators for
neurological disorders. Allosteric modulators offer several
potential advantages over conventional, non-allosteric molecules
and may offer an improved therapeutic approach to conventional
“orthosteric” small molecule or biological drugs. Addex’s
allosteric modulator drug discovery platform targets receptors and
other proteins that are recognized as essential for therapeutic
intervention. Addex’s lead drug candidate, ADX71149 (mGlu2 positive
allosteric modulator or PAM) is in a Phase 2 clinical trial for the
treatment of epilepsy. The company’s second clinical program,
dipraglurant (mGlu5 negative allosteric modulator or NAM), is under
evaluation for future development in post-stroke recovery. Indivior
PLC has licensed Addex’s GABAB PAM program for the development of
drug candidates, with a focus on substance use disorder. Addex is
also advancing a broad preclinical pipeline, which includes
development of a range of GABAB PAM for chronic cough, mGlu7 NAM
for stress related disorders, M4 PAM for schizophrenia and other
forms of psychosis and mGlu2 NAM for mild neurocognitive disorders
and depression. Addex shares are listed on the SIX Swiss Exchange
and American Depositary Shares representing its shares are listed
on the NASDAQ Capital Market, and trade under the ticker symbol
“ADXN” on each exchange.
Contacts:
Tim Dyer Chief Executive Officer Telephone: +41 22 884 15
55 PR@addextherapeutics.com |
Mike Sinclair Partner, Halsin Partners +44 (0)7968
022075 msinclair@halsin.com |
Addex Forward Looking
Statements: This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended, including
statements about the intended use of proceeds of the offering. The
words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,”
“anticipate,” “intend,” “believe,” “estimate,” “predict,”
“project,” “potential,” “continue,” “target” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Any forward-looking statements in this press
release, are based on management’s current expectations and beliefs
and are subject to a number of risks, uncertainties and important
factors that may cause actual events or results to differ
materially from those expressed or implied by any forward-looking
statements contained in this press release, including, without
limitation, uncertainties related to market conditions. These and
other risks and uncertainties are described in greater detail in
the section entitled “Risk Factors” in Addex Therapeutics’ Annual
Report on Form 20-F for the year ended December 31, 2022, as filed
with the SEC on March 30, 2023, the final prospectus supplement and
accompanying prospectus and other filings that Addex Therapeutics
may make with the SEC in the future. Any forward-looking statements
contained in this press release represent Addex Therapeutics’ views
only as of the date hereof and should not be relied upon as
representing its views as of any subsequent date. Addex
Therapeutics explicitly disclaims any obligation to update any
forward-looking statements.
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