MELBOURNE, Australia and SAN FRANCISCO, Jan. 6, 2023 /PRNewswire/ -- Alterity Therapeutics Limited ("Alterity" or the "Company") (ASX:ATH, NASDAQ:ATHE), a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced that its Board of Directors approved a ratio change of its American Depository Shares (ADSs) to Ordinary Shares (the "ADS Ratio") from the current ADS Ratio of 1 ADS representing 60 Ordinary Shares to 1 ADS representing 600 Ordinary Shares (the "ADS Ratio Change"). The ADS Ratio Change will be effective on January 9, 2023. Beginning with the opening of trading on Monday, January 9, 2023, Alterity's ADS will continue to trade on the Nasdaq Capital Market under the symbol "ATHE," but will trade on a split-adjusted basis under a new CUSIP number 02155X205.
As a result of the reverse split, every ten (10) existing ADSs will be exchanged for one (1) new ADS. The Bank of New York Mellon (the "Depositary"), as the depositary bank for the Company's ADS program, will arrange for the exchange of current ADSs for new ADSs.
No fractional new ADSs will be issued in connection with the ADS Ratio Change. 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. The ADS Ratio Change will have no impact on the Company's underlying Ordinary Shares traded on the ASX, and no Ordinary Shares will be issued or cancelled in connection with the ADS Ratio Change.
Alterity's Board of Directors approved the ADS ratio change with the objective of regaining compliance with the minimum bid price of $1.00 per share as outlined in the NASDAQ Listing Rules. The Company has until February 23, 2023 to regain compliance. The Company can give no assurance that this event will result in the company meeting NASDAQ's minimum bid price requirement.
About Alterity Therapeutics Limited
Alterity Therapeutics is a clinical stage biotechnology company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company's lead asset, ATH434, has the potential to treat various Parkinsonian disorders. Alterity also has a broad drug discovery platform generating patentable chemical compounds to intercede in disease processes. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please visit the Company's web site at www.alteritytherapeutics.com.
Authorisation & Additional information
This announcement was authorized by David Stamler, CEO of Alterity Therapeutics Limited.