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EDINBURGH - NuCana plc (NASDAQ:NCNA) announced Friday it will change the ratio of its American Depositary Shares (ADSs) to ordinary shares from 1:25 to 1:5,000, effectively creating a 1:200 reverse ADS split. According to InvestingPro data, the company’s stock has experienced significant volatility, with shares down over 94% in the past six months and currently trading at a Price/Book ratio of just 0.06.
The change, scheduled to take effect on August 8, 2025, aims to support liquidity in the company’s ADSs and help regain compliance with Nasdaq’s minimum bid price requirements, according to a press release statement. The move comes as the company maintains a current ratio of 1.25, with InvestingPro analysis indicating the company is quickly burning through its cash reserves.
Under the new arrangement, ADS holders will receive one new ADS for every 200 existing ADSs they currently hold. The exchange will occur automatically for holders of uncertificated ADSs, while those with certificated shares must surrender them to Citibank, the depositary bank, for cancellation.
NuCana will continue trading on The Nasdaq Capital Market under the ticker symbol "NCNA." No fractional new ADSs will be issued; instead, fractional entitlements will be aggregated and sold, with net proceeds distributed to applicable ADS holders.
The clinical-stage biopharmaceutical company focuses on improving cancer treatment outcomes by applying its ProTide technology to transform chemotherapy agents. With a market capitalization of just $0.36 million and an overall weak financial health score, investors should note that InvestingPro has identified 14 additional key factors affecting the company’s outlook. NuCana’s pipeline includes NUC-7738, currently in Phase 2 studies for advanced solid tumors and in combination with pembrolizumab for melanoma, and NUC-3373, being evaluated in combination with pembrolizumab for advanced solid tumors and with docetaxel for lung cancer.
While the ADS trading price is expected to increase proportionally following the ratio change, the company noted it cannot guarantee the post-change trading price will be proportionally equal to or greater than previous levels. The company’s next earnings report is scheduled for August 15, 2025, which could provide further clarity on its financial trajectory.
In other recent news, NuCana plc has entered into a sales agreement to offer and sell American Depositary Shares (ADSs) valued at up to $100 million. This agreement allows sales to occur periodically through A.G.P./Alliance Global Partners and Laidlaw & Company, with commissions up to 3% for the agents. Additionally, NuCana has priced a direct offering of ADSs and warrants, expected to raise approximately $7 million before fees and expenses. The proceeds from this offering are intended to support the advancement of NuCana’s drug discovery and development programs.
In leadership changes, NuCana’s CEO, Hugh S. Griffith, has taken a leave of absence due to health reasons, with Chairman Andrew Kay stepping in as Executive Chairman during Griffith’s absence. Meanwhile, Ian Webster has been appointed Interim Chief Financial Officer. The company has also disclosed potential risks related to its Series A and Series B ADS Purchase Warrants, which could affect its Nasdaq listing.
NuCana recently held its Annual General Meeting, where all proposed resolutions were passed. The company continues to focus on its ProTide technology, aiming to enhance chemotherapy agents’ efficacy and safety. These developments come amidst the backdrop of NuCana’s ongoing efforts to improve cancer treatment outcomes.
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