XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB), an Israeli-based bio-pharmaceutical company, has announced a significant adjustment to the number of American Depositary Shares (ADSs) and warrants. This move follows a settlement agreement with the CEO of its wholly-owned subsidiary, The Social Proxy Ltd., and the former shareholders of Social Proxy.
On Monday, the company's board decided to return 372,958,053 ordinary shares, represented by 3,729,581 ADSs, to the company's treasury. This action, which involved no compensation, was part of a resolution to adhere to the terms of the Settlement Agreement made on November 11, 2024.
XTL Biopharmaceuticals specializes in developing treatments for autoimmune diseases, holding intellectual property for hCDR1, a potential treatment for Lupus (SLE). The company is currently seeking strategic partnerships to conduct clinical trials and is exploring opportunities to expand its portfolio.
The Social Proxy, on the other hand, is a web data AI firm that has developed a unique proxy data extraction platform for AI and BI applications. The company boasts an innovative proxy technology that promises faster data extraction without sourcing IPs from other users, positioning itself as an ethical solution in the market.
XTL Biopharmaceuticals trades on both the Nasdaq Capital Market and the Tel Aviv Stock Exchange. The adjustment to the ADSs and warrants is a corporate action that may have implications for shareholders and investors, but the exact impact remains to be seen as the company continues to manage its acquisitions and intellectual property strategically.
The press release also contains forward-looking statements, cautioning about potential risks and uncertainties that could affect the company's business and actual results. These include the integration of The Social Proxy, management of operating costs, the ability to retain qualified employees, intellectual property protection, and general economic conditions.
This news is based on a press release statement from XTL Biopharmaceuticals Ltd. and reflects the latest developments in the company's corporate affairs.
In other recent news, XTL Biopharmaceuticals has amended the terms of its acquisition agreement with The Social Proxy Ltd., following a dispute. The new terms will see a reduction of about two-thirds in the number of American Depositary Shares (ADSs) and additional warrants to be issued to former Social Proxy shareholders, who will now own approximately 20% of XTL's current share capital on a non-diluted basis.
The escrow agent will exercise all rights associated with the ADSs, barring the right to attend and vote at general meetings, for an additional two-year period.
The settlement also stipulates that former Social Proxy shareholders can appoint one representative to XTL's board of directors, a reduction from the previously agreed two. Despite these changes, The Social Proxy will continue to operate as a wholly-owned subsidiary under XTL's approved budget.
In parallel, XTL Biopharmaceuticals has undertaken strategic steps to broaden its asset portfolio. The company recently acquired The Social Proxy Ltd., an AI firm specializing in web data solutions, and completed a private placement of $1.5 million to support the subsidiary's growth.
XTL's recent Annual and Extraordinary General Meeting confirmed board re-elections and auditor appointments, adding to the recent developments within the company.
InvestingPro Insights
XTL Biopharmaceuticals Ltd. (XTLB) presents a mixed financial picture according to recent InvestingPro data. The company's market capitalization stands at $21.45 million, reflecting its current position in the biopharmaceutical sector. Despite recent corporate actions, XTLB's stock has shown significant volatility, with a 73.25% year-to-date price total return, but a concerning 38.6% decline over the past three months.
InvestingPro Tips highlight that XTLB holds more cash than debt on its balance sheet, which could provide financial flexibility as the company navigates its strategic partnerships and potential clinical trials for hCDR1. Additionally, analysts predict that the company will be profitable this year, which aligns with the article's mention of XTL seeking strategic opportunities to expand its portfolio.
It's worth noting that XTLB does not pay a dividend to shareholders, focusing instead on potential growth and development of its pharmaceutical pipeline. For investors interested in a deeper analysis, InvestingPro offers 9 additional tips that could provide further insights into XTL Biopharmaceuticals' financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.