08:27 AM EDT, 08/16/2024 (MT Newswires) -- Redhill Biopharma ( RDHL ) said Friday that it will change the ratio of its American depositary shares to its non-traded ordinary shares to a new ratio of one ADS representing 10,000 ordinary shares from the current ratio of one ADS representing 400 ordinary shares.

The company said the change, which goes into effect around Aug. 20, will result in a 1-for-25 reverse split of the ADSs. No new ADSs will be issued as part of the change, while fractional ADS entitlements will be sold, with the proceeds distributed to holders, it said.

Redhill said it received a notice from Nasdaq in March for failing to meet the minimum bid price requirement for continued listing on the stock exchange. The company said it expects this ratio change to raise its ADS price and help regain compliance.

Shares of Redhill were down 4.8% in recent Friday premarket activity.

Price: 0.3657, Change: -0.02, Percent Change: -4.77