Midatech Pharma PLC (LON:MTPH) (NASDAQ:MTP) has announced a ratio change on its American Depositary Receipts from one ADR representing two ordinary shares, to a new ratio of one ADR representing twenty ordinary shares.
The AIM-listed R&D company, focused on delivering innovative oncology and rare disease products to patients, said the effective date of the ratio change is expected to be 8 April 2019.
For ADR holders, Midatech said the change will have the same effect as a one-for-10 reverse ADR split.
It added that the change is aimed to bring the price of the company's ADRs into compliance with the Nasdaq US$1.00 minimum bid price per share requirement, though Midatech said it can give no assurance that the ratio change will be effective in achieving this goal.
The company said the number of its ADRs in issue on 18 March 2019 was 8,293,832.
The group pointed out that the London-listed ordinary shares of Midatech will not be affected by this change.
In early morning trading, Midatech shares were up 4.5% at 5.85p.