ASLAN Pharmaceuticals, a clinical-stage biopharmaceutical company with a focus on immunology, has announced a strategic plan to adjust the ratio of its American Depositary Shares to ordinary shares. The change will involve transitioning from one ADS representing twenty-five ordinary shares to one ADS representing two hundred ordinary shares. This adjustment, equivalent to a one-for-eight reverse ADS split for existing ADS holders, is set to take effect on July 3, 2024, on the Nasdaq Capital Market. The Company assures that this change will not impact the ordinary shares directly, with the ADS trading price expected to reflect the new ratio.
The transition will occur automatically for existing ADS holders, with every eight old ADSs being exchanged for one new ADS on the effective date of July 3, 2024. Fractional entitlements to new ADSs will be aggregated and sold by the depositary bank, with the net proceeds distributed to the applicable ADS holders after deductions.
Following the ADS ratio change, it is anticipated that the ADS price will increase proportionally. However, ASLAN Pharmaceuticals cannot guarantee that the post-change trading price will be precisely eight times the pre-change price. The ADSs will continue to be traded on the Nasdaq under the symbol ASLN.
ASLAN Pharmaceuticals' decision to implement this ADS ratio change marks a significant strategic move in its financial structure, aiming to enhance shareholder value and potentially impact trading dynamics on the Nasdaq Capital Market. Investors and stakeholders will closely monitor the market response and the implications of this adjustment on the company's stock performance.
