Biodexa Pharmaceuticals Announces Reverse ADR Split to Regain Nasdaq Compliance

Biodexa Pharmaceuticals will implement a 1-for-10 reverse ADR split to regain Nasdaq compliance. The new ratio will be 1 ADR representing 100,000 ordinary shares, up from the current 1 ADR per 10,000 ordinary shares. This change is intended to help BDRX meet Nasdaq's $1.00 minimum bid price rule. ADR holders will exchange 10 old ADRs for 1 new ADR, effective July 31, 2025.

Biodexa Pharmaceuticals PLC (Nasdaq: BDRX), a clinical stage biopharmaceutical company, has announced a significant change in its American Depositary Receipts (ADR) ratio. Effective July 31, 2025, the company will modify its ADR ratio from 1:10,000 (1 ADR representing 10,000 ordinary shares) to 1:100,000 (1 ADR representing 100,000 ordinary shares). This change, which will function as a 1-for-10 reverse ADR split, is aimed at bringing the price of the company’s ADRs into compliance with Nasdaq's $1.00 minimum bid price per share requirement [1].

ADR holders will be required to surrender 10 existing ADRs to receive 1 new ADR, with JP Morgan Chase Bank managing the exchange process. Fractional interests will be sold, and the net proceeds will be distributed to the entitled ADR holder. The company's ordinary shares will remain unaffected by this change [2].

The primary goal of this ratio change is to meet Nasdaq's listing requirements. However, Biodexa has noted that it can give no assurance that the Ratio Change will be effective in achieving this goal. The company's own language suggests uncertainty about whether this technical maneuver will successfully maintain their listing [2].

This ratio change represents a classic compliance-driven financial maneuver rather than reflecting any improvement in business fundamentals. The company's own language betrays uncertainty about whether even this step will successfully maintain their listing, noting they "can give no assurance that the Ratio Change will be effective in achieving this goal" [2].

For investors, this development signals significant price deterioration has already occurred. Despite being labeled an "acquisition-focused" biopharmaceutical company, this financial restructuring suggests Biodexa is struggling with challenges that typically precede more serious financial difficulties. The continued Nasdaq listing remains tenuous even after this adjustment [2].

References:
[1] https://www.globenewswire.com/news-release/2025/07/15/3116036/0/en/ADR-Ratio-Change.html
[2] https://www.stocktitan.net/news/BDRX/adr-ratio-einqbuj5jnzc.html