TC BioPharm adjusts ADS to ordinary share ratio By Investing.com

EDINBURGH – TC BioPharm (Holdings) PLC (NASDAQ:TCBP), a clinical stage biotechnology company, today announced a change to the ratio of its American Depositary Shares (ADSs) to ordinary shares. The adjustment will increase the ratio from one ADS representing twenty ordinary shares to one ADS representing two hundred ordinary shares. This change, effectively a one-for-10 reverse ADS split, is set to become effective on August 5, 2024.

For current ADS holders, this means that for every ten ADSs owned, they will be required to exchange them for one new ADS. The Bank of New York Mellon (NYSE:), acting as the depositary bank for TC BioPharm’s ADS program, will manage the exchange process.

The ADS Ratio Change is not expected to impact the company’s underlying ordinary shares, as no new ordinary shares will be issued or cancelled due to this adjustment. Regarding fractional ADSs, no new fractional ADSs will be issued.

While the company anticipates that the trading price of the ADSs will increase proportionally following the change, there is no guarantee that the post-change trading price will be equal to or exceed the pre-change price.

TC BioPharm is recognized for its work in developing gamma-delta T cell therapies, particularly in the treatment of cancer, such as acute myeloid leukemia. The company is currently conducting two clinical trials in this area using its CryoTC technology.

TC BioPharm, a clinical-stage biotechnology firm, has secured approximately $3.9 million in gross proceeds from the exercise of warrants. The proceeds, before the deduction of placement agent fees and estimated expenses, are designated to fund an upcoming clinical trial targeting Acute Myeloid Leukemia, along with general operating costs and working capital. H.C. Wainwright & Co. serves as the exclusive placement agent for the offering.

TC BioPharm has announced its intent to acquire a biotechnology firm specializing in Chimeric Antigen Receptor T-cell (CAR-T) therapies for cancer treatment. This move is part of the company’s strategic push to enhance its portfolio of cancer therapies.

The acquisition candidate has established proof of concept data for its CAR-T therapy, showing potential in treating a range of solid tumors and is also developing therapies for autoimmune diseases. The finalization of this acquisition is contingent on various conditions including satisfactory negotiations, adequate financing, and necessary third-party approvals.

InvestingPro Insights

As TC BioPharm (Holdings) PLC (NASDAQ:TCBP) undergoes a significant change to its ADS ratio, investors are closely monitoring the company’s financial health and market position. According to InvestingPro data, TCBP’s market capitalization stands at a modest $4.57 million, reflecting the size of the company within the biotechnology sector. Despite a notable return over the last week with a 1-week price total return of 8.16%, the company’s long-term performance raises concerns, as indicated by a staggering 1-year price total return of -92.55%.

InvestingPro Tips suggest caution, as TCBP is quickly burning through cash and suffers from weak gross profit margins. Additionally, the company’s short-term obligations currently exceed its liquid assets, which could present liquidity challenges. Investors should also note that TCBP does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating stocks.

For those considering a deeper analysis of TCBP, InvestingPro provides additional insights, including a total of 11 InvestingPro Tips. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips and make more informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.