Biofrontera to delist American Depositary Shares to cut costs

Feb. 14, 2022 2:29 PM ETBiofrontera AG (BFAGY)BFRIBy: Dulan Lokuwithana, SA News Editor

Biofrontera (BFRA -3.4%) announced that the company decided to delist its American Depositary Shares (ADS) from the Nasdaq Capital Market. Concurrently, its reporting requirements with the U.S. Securities and Exchange Commission (SEC) will also come to an end.
The decision followed its plans to reduce the reporting complexity and contain administrative costs, the German biotech company said in a press release on Monday.
However, Biofrontera (NASDAQ:BFRA) will maintain an amended ADS program on a Level I basis allowing the investors to keep securities in ADSs and trade them on the U.S. over the counter (OTC) market.
With the delisting, ADSs will transition to the new program by default to trade under a ticker symbol that has not been decided yet.
In addition, the holders of ADS can opt to exchange their securities for Biofrontera AG (BFRA) ordinary shares, which will continue to trade at Deutsche Börse.
Biofrontera (BFRI -6.4%), the U.S.-based subsidiary of Biofrontera AG (BFRA), is also trading sharply lower today following the announcement.
In the first nine months of 2021, Biofrontera AG reported a ~50% YoY decline in operational loss as general and administrative costs rose ~10% YoY.