CHÂTILLON, France - DBV Technologies (Euronext: DBV, NASDAQ: DBVT), a clinical-stage biopharmaceutical company, announced a change in the ratio of its American Depositary Shares (ADSs) to ordinary shares to regain compliance with Nasdaq's minimum bid price requirement. The effective date for the alteration, originally set for June 3rd, is now anticipated to be around June 7th, 2024.
Currently, one ADS represents one-half of an ordinary share. The new ratio will adjust to one ADS for one ordinary share, effectively a one-for-two reverse ADS split. Registered holders of certificated ADSs will be mandated to exchange their shares for the new ratio, while holders of uncertificated ADSs in the Direct Registration System and in The Depository Trust Company will have the exchange processed automatically.
The company's ordinary shares, with a nominal value of €0.10 each, will remain unaffected by this change, with no shares being issued or cancelled. The change is expected to proportionally increase the trading price of DBV's ADSs, although the company has stated there is no assurance that the post-change trading price will be equal to or greater than twice the pre-change price.
DBV Technologies specializes in developing treatments for food allergies and other immunological conditions through its proprietary technology platform, Viaskin™. The company's focus is on epicutaneous immunotherapy (EPIT™), a non-invasive treatment designed to desensitize the immune system to allergens by leveraging the skin’s immune properties.
The ADS ratio modification will not result in the issuance of fractional new ADSs. Instead, fractional entitlements will be aggregated, sold by the depositary bank, and the net proceeds, after deductions, will be distributed to the applicable ADS holders.
DBV Technologies, headquartered in Châtillon, France, with North American operations in Warren, NJ, has its ordinary shares traded on Euronext Paris and its ADSs on the Nasdaq Global Select Market. The company has ongoing clinical trials for Viaskin Peanut, aimed at treating peanut allergies in young children.
This announcement is based on a press release statement and contains forward-looking statements regarding the expected impact of the ADS Ratio Change on DBV’s trading price and its compliance with Nasdaq regulations. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
InvestingPro Insights
In light of DBV Technologies' recent announcement regarding the ADS ratio change, investors may be keen to understand the financial health and market performance of the company. InvestingPro data reveals that DBV Technologies has experienced significant revenue growth over the last twelve months as of Q1 2024, with an impressive increase of 232.61%. However, the company's quarterly revenue growth shows a decline of -35.87% in Q1 2024, indicating a potential fluctuation in its financial performance.
The company's Price to Book (P/B) ratio stands at 1.12 for the same period, which can be indicative of the market's valuation of the company's net assets. A P/B ratio around or lower than one may suggest that the market might be undervaluing the company’s assets, or that investors are uncertain about the company’s future prospects.
InvestingPro Tips suggest that while DBV Technologies has a strong growth profile in terms of revenue, there are aspects of its financial performance that investors should monitor closely. The company's Gross Profit Margin remains at 100%, reflecting the total revenue DBV retains after accounting for the direct costs associated with producing the goods it sells and the services it provides. Additionally, it's worth noting that the InvestingPro Fair Value is calculated at 1.72 USD, which can serve as a reference point for investors trying to determine the stock's potential undervaluation or overvaluation.
For those looking to delve deeper into the financial analytics and get additional insights, InvestingPro offers more tips on DBV Technologies and other companies. As of now, there are 17 additional InvestingPro Tips available for DBV Technologies, which can be accessed through a subscription. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company prepares for its next earnings date on August 2, 2024, investors will undoubtedly be watching closely to see how the ADS ratio adjustment and the company's strategic initiatives will impact its stock performance and compliance with Nasdaq's regulations.
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