Evaxion Biotech plans a reverse ADS split, changing the ratio from 1:10 to 1:50, effective January 13, 2025.
Quiver AI Summary
Evaxion Biotech A/S announced plans to change the ratio of its American Depositary Shares (ADSs) from one ADS representing ten ordinary shares to one ADS representing fifty ordinary shares, effective around January 13, 2025. This change, equivalent to a one-for-five reverse ADS split, aims to enhance the liquidity of the ADSs. Holders of certificated ADSs must surrender them for cancellation and will receive new ADSs in a 5-to-1 exchange, while holders of uncertificated ADSs will undergo an automatic exchange. The company's ADSs will continue to trade on the Nasdaq Capital Market under the symbol “EVAX.” The company cautioned that while the trading price is expected to increase proportionally, it cannot guarantee this outcome or the overall impact on liquidity.
Potential Positives
- The company is implementing a change to the ADS ratio, which is designed to support liquidity in its American Depositary Shares.
- The adjustment in the ADS ratio is effectively a one-for-five reverse ADS split, which may lead to an increase in the ADS trading price, improving perceived value.
- The transition will occur automatically for uncertificated ADS holders, streamlining the process and enhancing shareholder experience.
- Evaxion continues to trade on the Nasdaq Capital Market under the ticker symbol "EVAX," maintaining its visibility to investors.
Potential Negatives
- The announcement of a reverse ADS split could be interpreted negatively by the market, as such actions are often viewed as a sign that a company is struggling with its share price and could lead to decreased investor confidence.
- The company explicitly states that there is no assurance that the ratio change will lead to an increase in the trading price of the ADSs, which may concern shareholders about the long-term value of their investment.
- The requirement for holders of certificated ADSs to surrender their shares for exchange may cause confusion or inconvenience for some investors, potentially leading to dissatisfaction or loss of investor trust.
FAQ
What is the new ADS ratio being adopted by Evaxion Biotech?
Evaxion is changing the ADS ratio from 1 ADS for 10 ordinary shares to 1 ADS for 50 ordinary shares.
When will the new ADS ratio take effect?
The new ADS ratio is expected to become effective on or about January 13, 2025.
How will ADS holders be affected by the ratio change?
Holders will exchange five existing ADSs for one new ADS automatically; certificated holders must surrender their ADSs for cancellation.
Will fractional ADSs be issued after the ratio change?
No fractional new ADSs will be issued; fractional entitlements will be aggregated and sold, with proceeds distributed to holders.
Will the ADS trading price increase due to the ratio change?
While a proportionate increase is expected, there is no assurance that the trading price will exceed previous levels post-change.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$EVAX Hedge Fund Activity
We have seen 3 institutional investors add shares of $EVAX stock to their portfolio, and 2 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARMISTICE CAPITAL, LLC added 91,000 shares (+23.2%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC added 14,825 shares (+inf%) to their portfolio in Q3 2024
- INVST, LLC removed 10,800 shares (-20.0%) from their portfolio in Q3 2024
- BLACKROCK, INC. added 1,512 shares (+inf%) to their portfolio in Q3 2024
- JPMORGAN CHASE & CO removed 1,400 shares (-64.2%) from their portfolio in Q3 2024
- SOUTHSTATE CORP added 0 shares (+0.0%) to their portfolio in Q3 2024
- RHUMBLINE ADVISERS added 0 shares (+0.0%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
COPENHAGEN, Denmark, December 30, 2024 - Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, today announced that it plans to change the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares, DKK 1 nominal value (the “ADS ratio”), from the current one (1) ADS representing ten (10) ordinary share to a new ADS ratio of one (1) ADS representing fifty (50) ordinary shares (the “ADS ratio change”). The ADS ratio change is expected to become effective on or about January 13, 2025, U.S. Eastern Time (the “effective date”).
For the company's ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split and is intended to further support the liquidity in the company’s ADSs.
On the effective date, registered holders of the company’s ADSs held in certificated form will be required on a mandatory basis to surrender their certificated ADSs to The Bank of New York Mellon, the depositary bank (the “depositary”), for cancellation and will receive one (1) new ADS in exchange for every five (5) existing ADSs then-held.
Holders of uncertificated ADSs in the Direct Registration System (DRS) and the Depository Trust Company (DTC) will have their ADSs automatically exchanged and need not take any action. The exchange of every five (5) then-held (existing) ADSs for one (1) new ADS will occur automatically at the effective date, with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank. The company’s ADSs will continue to be traded on the Nasdaq Capital Market under the ticker symbol “EVAX.”
No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the depositary and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses) will be distributed to the applicable ADS holders by the depositary.
As a result of the ADS ratio change, the ADS trading price is expected to increase proportionally, although the company can give no assurance that the ADS trading price after the ADS ratio change will be proportionally equal to or greater than the previous’ ADS trading price prior to the change or that the ratio change will have any effect on the liquidity in the company’s ADSs.
Contact information
Evaxion Biotech A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion.ai
About EVAXION
Evaxion Biotech A/S is a pioneering TechBio company based upon its AI platform, AI-Immunology™. Evaxion’s proprietary and scalable AI prediction models harness the power of artificial intelligence to decode the human immune system and develop novel immunotherapies for cancer, bacterial diseases, and viral infections. Based upon AI-Immunology™, Evaxion has developed a clinical-stage oncology pipeline of novel personalized vaccines and a preclinical infectious disease pipeline in bacterial and viral diseases with high unmet medical needs. Evaxion is committed to transforming patients’ lives by providing innovative and targeted treatment options. For more information about Evaxion and its groundbreaking AI-Immunology™ platform and vaccine pipeline, please
visit our website
.
Forward-looking statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “target,” “believe,” “expect,” “hope,” “aim,” “intend,” “may,” “might,” “anticipate,” “contemplate,” “continue,” “estimate,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could,” and other words and terms of similar meaning identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including, but not limited to, risks related to: our financial condition and need for additional capital; our development work; cost and success of our product development activities and preclinical and clinical trials; commercializing any approved pharmaceutical product developed using our AI platform technology, including the rate and degree of market acceptance of our product candidates; our dependence on third parties including for conduct of clinical testing and product manufacture; our inability to enter into partnerships; government regulation; protection of our intellectual property rights; employee matters and managing growth; our ADSs and ordinary shares, the impact of international economic, political, legal, compliance, social and business factors, including inflation, and the effects on our business from other significant geopolitical and macro-economic events; and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the risk factors included in our most recent Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission (SEC), which are available at
www.sec.gov
. We do not assume any obligation to update any forward-looking statements except as required by law.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
