NuCana announces ADS ratio adjustment to meet Nasdaq standards

EDINBURGH - NuCana plc (NASDAQ: NCNA), a clinical-stage biopharmaceutical company, has announced a forthcoming change in the ratio of its American Depository Shares (ADSs) to ordinary shares. The adjustment will alter the current one-to-one ratio to one ADS representing twenty-five ordinary shares, effective on or about April 16, 2024. This modification is akin to a one-for-twenty-five reverse ADS split, though it will not affect the proportional equity interests of ADS holders.

The initiative is aimed at enhancing the liquidity of the company's ADSs and ensuring compliance with the Nasdaq minimum bid price requirement. On the effective date, registered holders of certificated ADSs must exchange their holdings for new ADSs at Citibank, N.A., the depositary bank. Those with uncertificated ADSs in the Direct Registration System (DRS) and The Depository Trust Company (DTC) will have their ADSs automatically exchanged.

Fractional new ADSs will not be issued. Instead, fractional entitlements will be sold, and the net cash proceeds, after deductions, will be distributed to relevant ADS holders. Although NuCana anticipates that the ADS trading price will proportionally increase following the change, the company has stated that there can be no assurance of the trading price's proportionality post-change or the effect on liquidity.

NuCana specializes in improving cancer treatment outcomes by applying its ProTide technology to chemotherapy agents, aiming to make them more effective and safer. The company's pipeline includes NUC-3373 and NUC-7738, both undergoing clinical evaluation for their potential to treat various cancers.

The company's plans and the expected impact of the ADS ratio change are forward-looking statements, which involve risks and uncertainties. These statements are based on current expectations and projections about future events. NuCana has cautioned that actual outcomes may differ materially from those anticipated in the forward-looking statements due to various factors.

In light of NuCana plc's recent announcement regarding the adjustment of its ADS ratio, current and potential investors might find the following InvestingPro metrics and tips particularly informative. With a market capitalization of just $16 million, the company's financial standing is under scrutiny. The P/E ratio, standing at -0.36, reflects the company's lack of profitability in the last twelve months as of Q3 2023. This is further underscored by the significant operating loss of $45.97 million during the same period.

An InvestingPro Tip worth noting is that NuCana holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations. However, another InvestingPro Tip highlights that the company is quickly burning through cash, which may raise concerns about its long-term sustainability without additional funding or revenue streams.

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The stock's performance also presents a cautionary tale, with a 6-month price total return of -51.43%, indicating that the stock has taken a considerable hit over the last six months. This could be a reflection of investor sentiment towards the company's prospects and the broader market's reaction to its financial health. With the next earnings date set for May 15, 2024, investors will be keen to see if the company can turn its fortunes around.

For those interested in a deeper dive into the company's financials and future prospects, there are 9 additional InvestingPro Tips available at https://www.investing.com/pro/NCNA. And for a limited time, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, giving you access to an even broader array of insights and analytics.

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