DBV Technologies Unveils Strategy for ADS Ratio Adjustment
DBV Technologies Unveils Strategy for ADS Ratio Adjustment
DBV Technologies, a pioneering biopharmaceutical firm that focuses on developing innovative therapy options for food allergies and various immunologic ailments, has announced its plan to modify the ratio of its American Depositary Shares (ADSs) to its ordinary shares. As part of this change, the current ADS ratio of one ADS to one ordinary share will transform to a new ratio of one ADS to five ordinary shares. This strategic adjustment, termed the ADS Ratio Change, is designed to support the company's compliance with Nasdaq's minimum bid price requirement.
Understanding the ADS Ratio Change
The move to a one-for-five reverse ADS split essentially means that for every five ADSs currently held, shareholders will receive one new ADS. This adjustment is aimed at bolstering the trading price of DBV's ADSs in line with Nasdaq standards. Registered holders of certificated ADSs will have to actively surrender their current ADSs to the depositary bank for cancellation, receiving new ADS shares in return. For those holding ADSs through the Direct Registration System or in The Depository Trust Company, the exchange will occur automatically without any action required on their part.
The Implications of the Change
No fraction of new ADSs will be issued as a result of this shift in the ADS ratio. Instead, any fractional rights resulting from the change will be combined and sold by the depositary bank. The proceeds from the sale of these fractional entitlements will then be distributed in cash to the respective ADS holders. Importantly, this change will not affect the underlying ordinary shares of DBV Technologies, as no ordinary shares will be created or eliminated due to this adjustment.
Market Reactions and Expectations
With the planned ADS ratio change, DBV Technologies anticipates a proportional increase in the trading price of its ADSs. However, the company notes that it cannot guarantee that the post-change trading price will equate to or exceed five times the price prior to the adjustment. This expectation underscores the dynamic nature of the stock market and the inherent uncertainties associated with share price movements.
About DBV Technologies
Headquartered in France with additional operations in North America, DBV Technologies is committed to addressing the significant unmet needs in food allergy treatment. The company is leveraging its unique Viaskin patch technology, which allows for non-invasive epicutaneous immunotherapy (EPIT) aimed at teaching the immune system to tolerate food allergens. This innovative approach is especially critical for young children who are highly vulnerable to severe allergenic reactions.
Aiming to Transform Allergy Care
DBV is presently conducting clinical trials for several of its key products, including the Viaskin Peanut aimed at peanut allergies among toddlers and young children. This reflects the company's dedication to altering the landscape of food allergy management through groundbreaking therapies.
Connecting with DBV Technologies
The company actively engages with the public and shareholders through various platforms. For further details on their initiatives, technology, and stock market activities, individuals can explore their official communication channels. Should you have questions or need more specific information, DBV Technologies' investor relations contacts are available to assist.
Frequently Asked Questions
What is the purpose of the ADS ratio change by DBV Technologies?
The ADS ratio change is designed to help the company meet Nasdaq's minimum bid price requirement, enhancing its compliance status.
How will the new ADS ratio affect existing shareholders?
Shareholders will exchange five existing ADSs for one new ADS, which means they will hold fewer shares overall but with potentially increased value per share.
Will there be any impact on DBV's ordinary shares?
No, the change in the ADS ratio will have no effect on the underlying ordinary shares, as none will be issued or cancelled due to this change.
What should holders of certificated ADSs do?
Holders of certificated ADSs must surrender their shares to the depositary bank for cancellation to receive new ADSs in exchange.
Is DBV Technologies involved in any other development projects?
Yes, DBV is actively working on various clinical trials, particularly focusing on innovative treatments for food allergies using its proprietary technologies.
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