Advanced Health Intelligence Announced Implementation of ADS Ratio Change With Effect Of 1:4 Reverse ADS Split
Portfolio Pulse from Charles Gross
Advanced Health Intelligence Ltd (NASDAQ:AHI) has announced a ratio change of its American Depositary Shares (ADSs) to its non-traded ordinary shares from 1:7 to 1:28, effective on June 30, 2023. This change will have the same effect as a 1:4 reverse split of the existing ADSs. Trading of the ADSs on Nasdaq was halted in anticipation of the ratio change and will resume on June 30, 2023.
June 29, 2023 | 8:59 pm
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Advanced Health Intelligence's announced ratio change will act as a 1:4 reverse split of its ADSs. This could potentially increase the price per share, but decrease the number of shares outstanding. Trading was halted in anticipation and will resume on June 30, 2023.
A reverse stock split reduces the number of shares outstanding, which can increase the price per share. However, it does not change the overall market capitalization of the company. The halt in trading is a common practice in anticipation of such changes. The impact on the stock price will depend on market reaction once trading resumes.
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