Swiss pharmaceutical firm Addex Therapeutics, known for its advanced allosteric modulation-based drug discovery, has received approval from Nasdaq for a significant change in its American Depositary Shares (ADSs) to ordinary share ratio. This announcement was confirmed on Friday and is set to be effective from Monday, October 23, 2023.
The firm's new ratio will transition from one ADS to six ordinary shares to a much larger one ADS to 120 ordinary shares. This shift is equivalent to a one-for-twenty reverse ADS split. On the effective date, all existing ADSs will be canceled and replaced, with one new ADS issued for every twenty canceled.
This strategic move by Addex is designed to help the company regain compliance with the Nasdaq minimum bid price requirement. It's important to note that this change won't affect Addex's underlying ordinary shares or any holder's equity interest, except in cases of fractional ADS ownership. Fractional entitlements to new ADSs will be sold off, and the net proceeds will be distributed among applicable holders.
Following this change, Addex's ADSs will continue trading on the Nasdaq Capital Market under the ticker "ADXN". The company continues to make strides in its clinical trials with ADX71149, a mGlu2 positive allosteric modulator (PAM) in Phase 2 trials for epilepsy treatment. Meanwhile, Dipraglurant (mGlu5 negative allosteric modulator or NAM) is being evaluated for post-stroke recovery applications.
According to InvestingPro data, Addex Therapeutics holds a market cap of 6.48M USD and has seen a revenue growth of 35.18% in the last twelve months (LTM2023.Q2). However, the company has been grappling with negative gross profit margins of -304.45% during the same period. The company's stock has taken a significant hit over the last six months, with a price total return of -40.58%.
Moreover, as per InvestingPro Tips, the company operates with a poor return on assets and yields a low return on invested capital. The stockholders have been receiving poor returns on book equity. The stock price movements have been quite volatile, and analysts do not anticipate the company to be profitable this year. Despite these challenges, Addex holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations.
Addex has also licensed its GABAB PAM program specifically for substance use disorder treatment to Indivior PLC. The data pertaining to this announcement was provided by Barchart Market Data Solutions, Morningstar, Zacks Investment Research, and Edgar Online. For more insightful data and tips like these, consider subscribing to InvestingPro, which offers an additional 15 tips for ADXN here.
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