SVRE: Updating our model to reflect the recent ADS ratio adjustment.
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NASDAQ:SVRE
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SaverOne 2014 (NASDAQ:SVRE) significantly adjusted its ratio of ADS to common shares from 1 ADS to 5 common shares to 1 ADS to 90 common shares on October 28, 2024, to regain compliance with NASDAQ’s minimum $1.00 closing bid requirement. This effectively acts as 1-for-18 reverse split of the ADSs and has had the desired effect as the stock has again traded above $1 for the past 3 weeks and the company regained NASDAQ compliance as of November 12.
The pace of equity issuance by the company has been relentless over the past year and appears to have accelerated in 2024. As of 12/31/23, the company had 69.6 million shares outstanding but that number had grown to roughly 164 million shares as of November 2024.
VALUATION
We are adjusting our 12-month target valuation adjusted our target valuation for the company to roughly $12 million while adjusting our projected ADS count to 2.7 million at the end of 2025. If the significant Motor Supply agreement results in orders in 2025 this could positively impact our valuation target but for now our new target valuation for the shares is $4.50/ADS but we recognize that many of the factors that go into our calculation of this target are difficult to forecast at this time. We hope to have a clearer picture of the company’s prospects both domestically and internationally as we enter 2025.
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