Can‑Fite BioPharma Ltd. (CANF) announced a 1‑for‑3,000 reverse split of its ordinary shares and a corresponding adjustment to the American Depositary Share (ADS) ratio. The board approved the split on November 10, 2025, and the announcement was released on December 23, 2025. The reverse split will be recorded on the Tel‑Aviv Stock Exchange (TASE) on January 2, 2026, with the first trading of the consolidated ordinary shares scheduled for January 5, 2026.
The reverse split reduces the number of ordinary shares from 42 billion to 14 million, and the authorized share count is proportionally decreased. The 1‑for‑3,000 ratio consolidates each 3,000 ordinary shares into a single share, effectively raising the per‑share price and improving liquidity. The TASE recording date of January 2, 2026, precedes the first trading date of January 5, 2026, ensuring a smooth transition for shareholders.
The ADS ratio will change from one ADS representing 300 ordinary shares to one ADS representing two ordinary shares, a 1‑for‑20 ADS split. The change takes effect on the NYSE American on January 5, 2026. The depositary bank will exchange every 20 ADSs for one new ADS; fractional entitlements will be sold, and the proceeds distributed to holders. Shareholder ownership percentages remain unchanged, aside from minor rounding adjustments for fractional shares.
The reverse split is primarily aimed at increasing the per‑share price to meet listing requirements and to make the stock more attractive to institutional investors. Can‑Fite’s share price has been trading near its 52‑week low, and the company’s financial metrics—negative operating and net margins, declining revenue growth, and an Altman Z‑Score of –24.8—indicate significant distress. The split is therefore viewed by investors as a defensive move to avoid potential delisting from the NYSE American and to improve marketability, even though it does not address underlying business challenges.
Investor reaction to the announcement was negative, reflecting concerns that a reverse split signals financial weakness. The market’s response underscores the perception that such a drastic consolidation is a last resort for companies with depressed share prices, despite the company’s stated goal of enhancing liquidity and meeting regulatory thresholds.
Can‑Fite has executed reverse splits in the past, including a 1‑for‑15 split in May 2019 and a 1‑for‑10 split in January 2023, indicating a recurring need to address low per‑share prices. The company remains a clinical‑stage biopharmaceutical firm with drug candidates in development for cancer, liver, and inflammatory diseases. However, its financial performance—negative margins and a distress‑zone Z‑Score—suggests that the reverse split is a structural adjustment rather than a sign of improved operational performance. The event provides insight into the company’s ongoing liquidity strategy and regulatory compliance efforts, but it does not alter the fundamental challenges facing its pipeline and financial health.
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