BrainsWay Ltd. (NASDAQ: BWAY) announced that its Board of Directors has approved a change to the ratio of its American Depositary Shares (ADSs) listed on the Nasdaq Capital Market relative to its ordinary shares traded on the Tel Aviv Stock Exchange. The company will shift from a 2‑to‑1 ordinary share‑to‑ADS ratio to a 1‑to‑1 structure, effective March 3 2026. The adjustment is a forward split of the ADSs, with each existing ADS holder receiving one additional ADS for each ADS held, effectively halving the ADS price.
The forward‑split mechanism means that the total number of ADSs outstanding will double while the price per share will be cut in half. The change does not alter the underlying equity ownership or the company’s financial position; it simply aligns the Nasdaq‑listed ADRs with the ordinary shares on the Tel Aviv Stock Exchange, making valuation comparisons across the two markets more straightforward.
CEO Hadar Levy said, "Changing the ADS ratio to align on a one‑for‑one basis with our ordinary shares is intended to simplify comparisons of our share price on NASDAQ and TASE, allowing for a clearer focus on the value of our rapidly growing business, regardless of the exchange on which investors hold our securities." The company emphasized that the ratio change will enhance liquidity and accessibility for U.S. investors without requiring any action from ADS holders.
BrainsWay is a medical‑technology company that develops non‑invasive brain‑stimulation devices, most notably its Deep Transcranial Magnetic Stimulation platform for treating major depressive disorder, obsessive‑compulsive disorder, and smoking addiction. The firm recently received FDA approval for its ProlivRx system for major depressive disorder, and payer coverage has expanded through agreements with entities such as Highmark and Premera Blue Cross‑Blue Shield. The company’s price‑to‑earnings ratio of 91.5 is considered high relative to peers; the 1‑to‑1 split will effectively halve the P/E multiple, potentially easing valuation concerns. Short interest in the ADRs rose 116.5 % in January 2026, indicating heightened speculative activity.
The ADS ratio change did not trigger a market reaction, but analysts have been focusing on the company’s recent FDA approval and valuation metrics. While the split itself is a routine corporate action, it signals BrainsWay’s intent to present a unified valuation framework across its dual‑listed shares, which may improve investor perception of the company’s growth prospects and financial health.
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