Sequans to change ADS ratio to 1:100 effective September 17

PARIS - Sequans Communications S.A. (NYSE:SQNS), currently trading at $0.85 and down over 75% year-to-date according to InvestingPro data, announced Thursday that its Board of Directors has approved a plan to change the ratio of its American Depositary Shares (ADSs) to ordinary shares from 1:10 to 1:100, effective September 17, 2025.

The change will have the same effect as a one-for-ten reverse ADS split for current ADS holders. No fractional new ADSs will be issued, with holders who would otherwise receive fractional ADSs receiving cash payments instead.

The semiconductor company, which specializes in cellular IoT solutions, cited three main objectives for the ratio adjustment: improving operational efficiency following a July 2025 capital increase, enhancing market appeal through a higher per-ADS price to attract institutional investors, and ensuring continued compliance with NYSE listing requirements.

Sequans’ ordinary shares will not be affected by this change. The company’s ADSs will continue trading on the NYSE under the ticker symbol "SQNS," with the trading price expected to increase proportionally, though the company provided no guarantees regarding the post-change trading price.

Holders in the Direct Registration System and in DTC will have their ADSs automatically exchanged, while those with certificate-form ADSs will need to exchange their certificates for new book-entry ADSs at a rate of 10 old ADSs for 1 new ADS.

Based in France with global operations, Sequans has recently positioned itself as a pioneer in adopting Bitcoin as its primary treasury reserve asset alongside its core semiconductor business, according to the company’s press release statement.

In other recent news, Sequans Communications reported its financial results for the first quarter of 2025, which showed a significant earnings miss. The company posted an earnings per share (EPS) of -$3.6, falling well short of the forecasted -$0.06. Additionally, revenue was reported at $8.14 million, which was below the expected $15.4 million, representing a 47.14% revenue surprise. In another development, Sequans has established an "at the market" equity offering program for up to $200 million in American Depositary Shares. This program will allow the company to sell shares at its discretion, as outlined in a prospectus filed with the U.S. Securities and Exchange Commission. The offering will be conducted under Sequans’ shelf registration statement on Form F-3. These recent developments highlight the company’s current financial and strategic initiatives.

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