Filed Pursuant to Rule 424(b)(3)
Registration No, 333-281489
PROSPECTUS
4,349,102,800 Ordinary Shares Representing 10,872,757 American
Depositary Shares
___________________
This prospectus relates to the resale from
time to time, by the selling shareholders identified in this prospectus, of up to an aggregate of 4,349,102,800 ordinary shares, nominal
value £0.001 per share, or Ordinary Shares, of Biodexa Pharmaceuticals PLC, or the Company, represented by 10,872,757 American Depositary
Shares, or Depositary Shares, consisting of (1) 2,131,913,200 Ordinary Shares represented by 5,329,783 Depositary Shares, issuable upon
the exercise of Series J warrants, or Series J Warrants, issued in a July 2024 private placement, or the July 2024 Private Placement,
(2) 2,131,913,200 Ordinary Shares represented by 5,329,783 Depositary Shares, issuable upon the exercise of Series K warrants, or Series
K Warrants, issued in the July 2024 Private Placement, and (3) 85,276,400 Ordinary Shares represented by 213,191 Depositary Shares, issuable
upon the exercise of placement agent warrants, or the July 2024 Placement Agent Warrants, issued in the July 2024 Private Placement.
The selling shareholders are identified
in the table commencing on page 57. Each Depositary Share represents 400 Ordinary Shares. No Depositary Shares are being registered
hereunder for sale by us. We will not receive any proceeds from the sale of the Depositary Shares by the selling shareholders. All net
proceeds from the sale of the Ordinary Shares represented by Depositary Shares covered by this prospectus will go to the selling shareholders.
However, we may receive proceeds from any exercise of warrants held by selling shareholders. See “Use of Proceeds.”
The selling shareholders may sell all or
a portion of the Ordinary Shares represented by Depositary Shares from time to time in market transactions through any market on which
our Depositary Shares are then traded, in negotiated transactions or otherwise, and at prices and on terms that will be determined by
the then prevailing market price or at negotiated prices directly or through a broker or brokers, who may act as agent or as principal
or by a combination of such methods of sale. See “Plan of Distribution.”
Our Depositary Shares are
listed on the NASDAQ Capital Market under the symbol “BDRX.” The last reported closing price of our Depositary Shares on the
NASDAQ Capital Market on August 16, 2024 was $0.599.
Investing in our securities involves
risks. See “Risk Factors” beginning on page 7 of this prospectus for a discussion of the factors you should carefully consider
before deciding to purchase these securities.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
The date of this prospectus is August 19, 2024
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration
statement that we filed with the Securities and Exchange Commission, or SEC. As permitted by the rules and regulations of the SEC, the
registration statement filed by us includes additional information not contained in this prospectus. You may read the registration statement
and the other reports we file with the SEC at the SEC’s website or its offices described below under the heading “Where You
Can Find More Information”.
You should rely only on the information
contained in this prospectus. We have not authorized any person to provide you with information different from that contained in this
prospectus. This prospectus is not an offer to sell, nor is it seeking an offer to buy, these securities in any state where the offer
or sale is not permitted. The information in this prospectus speaks only as of the date of this prospectus unless the information specifically
indicates that another date applies, regardless of the time of delivery of this prospectus or of any sale of the securities offered hereby.
Our business, financial condition, results of operations, and prospects may have changed since that date. We do not take any responsibility
for, nor do we provide any assurance as to the reliability of, any information other than the information in this prospectus. Neither
the delivery of this prospectus nor the sale of the Depositary Shares means that information contained in this prospectus is correct after
the date of this prospectus. You should not consider this prospectus to be an offer or solicitation relating to the securities in any
jurisdiction in which such an offer or solicitation relating to the securities is not authorized. Furthermore, you should not consider
this prospectus to be an offer or solicitation relating to the securities if the person making the offer or solicitation is not qualified
to do so, or if it is unlawful for you to receive such an offer or solicitation.
Unless the context specifically indicates
otherwise, references in this prospectus supplement to “Biodexa Pharmaceuticals PLC,” “Biodexa,” “the Company,”
“we,” “our,” “ours,” “us,” “the Group,” or similar terms refer to Biodexa
Pharmaceuticals PLC and its consolidated subsidiaries.
For investors outside the United States: We have not taken
any action to permit a public offering of the Depositary Shares outside the United States or to permit the possession or distribution
of this prospectus outside the United States. Persons outside the United States who come into possession of this prospectus must inform
themselves about and observe any restrictions relating to the offering of the Depositary Shares and the distribution of this prospectus
outside of the United States.
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
Our financial statements
are prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
We have made rounding adjustments to some of the figures included in this prospectus. Accordingly, numerical figures shown as totals in
some tables may not be an arithmetic aggregation of the figures that preceded them.
We prepare our
consolidated financial statements in British pounds sterling. Except as otherwise stated, all monetary amounts in this prospectus are
presented in British pounds sterling.
In this prospectus, unless otherwise specified
or the context otherwise requires:
| · | “$” and “U.S. dollar” each refer to the United States dollar (or units thereof);
and |
| · | “£,” “pence” and “p” each refer to the British pound sterling
(or units thereof). |
On March 27, 2023, following shareholder
approval, we effected a one-for-20 reverse split of our Ordinary Shares and our Ordinary Shares began trading on AIM, a market operated
by the London Stock Exchange plc, or AIM, on a split-adjusted basis as of such date. No fractional shares were issued in connection with
the reverse stock split. On March 24, 2023, our shareholders approved the cancellation of admission of our Ordinary Shares on AIM and
this cancellation became effective on April 26, 2023.
Concurrently with the reverse split, and
in order to continue meeting The NASDAQ Stock Market LLC’s, or NASDAQ, minimum 500,000 publicly held shares requirement pursuant
to Rule 5550(a)(4), on March 27, 2023 we effected a ratio change in the number of Ordinary Shares represented by our American depositary
shares, or Depositary Shares, from 25 Ordinary Shares per Depositary Share to five Ordinary Shares per Depositary Share.
On June 14, 2023, we held our annual general
meeting of shareholders, or June AGM, and our shareholders passed resolutions, among other procedural items, to approve the allotment
of, and disapplication of pre-emption rights in respect of, up to 7.0 billion Ordinary Shares, or Shareholder Approval. On June 14, 2023,
we also held a general meeting of shareholders, or June GM, and our shareholders passed resolutions to (x)(i) re-designate our deferred
shares into A Deferred Shares, or the Re-Designation, and (ii) subdivide our Ordinary Shares of £0.02 nominal value each into one
ordinary share of £0.001 nominal value and 19 B Deferred Shares of £0.001 nominal value each, each the Subdivision, which
became effective on June 15, 2023 and (y) adopt new articles of association, or the Articles of Association, which make consequential
amendments to the existing articles of association of the Company to reflect the Re-Designation and the Subdivision, together with certain
other changes to reflect that the Ordinary Shares are no longer admitted to trading on AIM. As is standard for deferred shares, each B
Deferred Share has very limited rights and is effectively valueless. The B Deferred Shares have the rights and restrictions as set out
in the Articles of Association and do not entitle the holder thereof to receive notice of or attend and vote at any general meeting of
the Company or to receive a dividend or other distribution.
On July 5, 2023, and in an effort to bring
our Depositary Share price into compliance with NASDAQ’s minimum bid price per share requirement, we effected a ratio change in
the number of Ordinary Shares represented by our Depositary Shares from five Ordinary Shares per Depositary Share to 400 Ordinary Shares
per Depositary Share. No fractional Depositary Shares were issued.
The change in the number of Ordinary Shares
resulting from the reverse stock split and change in the number of Depositary Shares (and the underlying Ordinary Shares) resulting from
the change in ratio, including any changes resulting from fractional Depositary Shares not being issued to holders in connection with
the Depositary Share ratio change, has been applied retroactively to all share and per share amounts presented in this prospectus, to
the extent applicable. As a result of retroactively applying changes resulting from fractional Depositary Shares not being issued to holders
in connection with the Depositary Share ratio change, the amount of Ordinary Shares issued in prior transactions may not equal the amount
of Depositary Shares such Depositary Shares are currently exercisable for.
MARKET AND INDUSTRY DATA
Market data and certain industry data and
forecasts used throughout this prospectus were obtained from sources we believe to be reliable, including market research databases, publicly
available information, reports of governmental agencies, and industry publications and surveys. We have relied on certain data from third-party
sources, including internal surveys, industry forecasts, and market research, which we believe to be reliable based on our management's
knowledge of the industry. While we are not aware of any misstatements regarding the industry data presented in this prospectus, our estimates
involve risks and uncertainties and are subject to change based on various factors, including those discussed under the heading “Risk
Factors” and elsewhere in this prospectus.
Solely for convenience,
the trademarks and trade names in this prospectus may be referred to without the ® and ™ symbols, but such references should
not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights
thereto. The trademarks, trade names and service marks in this prospectus are the property of their respective owners.
PROSPECTUS SUMMARY
This summary highlights selected information
that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information that may be important
to you. You should carefully read this prospectus, including the documents incorporated by reference,
which are described under “Where You Can Find Additional Information” and “Incorporation of Certain Information by Reference”
in this prospectus. You should also carefully consider the matters discussed in the section in this prospectus entitled “Risk Factors.”
Our Business
We
are an acquisition-focused clinical stage biopharmaceutical company developing a pipeline of innovative products for the treatment of
diseases with unmet medical needs, including familial adenomatous polyposis, or FAP, non-muscle invasive bladder cancer, or NMIBC, type
1 diabetes, or T1D, and rare/orphan cancers of the brain.
In
April 2024 we licensed eRapa™, a proprietary formulation of rapamycin, from Rapamycin Holdings, Inc. d/b/a Emtora Biosciences, Inc.,
or Emtora. Rapamycin is an mTOR inhibitor. As a central regulator of cell metabolism, growth, proliferation and survival, the mTOR pathway
is activated during various cellular processes including tumor formation and angiogenesis. Through the use of nanotechnology and pH sensitive
polymers, eRapa is designed to address the poor bioavailability, variable pharmacokinetics and toxicity generally associated with the
currently available forms of rapamycin. An ongoing Phase 2 study of eRapa in NMIBC is scheduled to report results in mid-2025.
Tolimidone
is a selective activator of the enzyme lyn kinase which increases phosphorylation of insulin substrate -1, thereby amplifying the signaling
cascade initiated by the binding of insulin to its receptor. Lyn kinase modulates key intracellular functions such as proliferation, differentiation,
apoptosis, migration and metabolism. In fat cells, lyn kinase increases utilization of insulin, thus decreasing blood sugar without having
an effect on insulin production. In pancreatic islets, activation of lyn kinase promotes beta cell survival and proliferation, whereas
its inhibition leads to cell death, prevents proliferation and precipitates diabetes. We are developing tolimidone for T1D and are in
the process of initiating a Phase 2a dose confirming study.
MTX110,
which is being studied in aggressive rare/orphan brain cancer indications including recurrent glioblastoma, diffuse midline glioma, or
DMG, and medulloblastoma, is a liquid formulation of the histone deacetylase, panobinostat. Our proprietary formulation enables delivery
of the product via convection-enhanced delivery at potentially chemotherapeutic doses directly to the site of the tumor, by-passing the
blood-brain barrier and avoiding systemic toxicity. We have recruited the first cohort of patients in an ongoing Phase 1 study of MTX110
in recurrent glioblastoma. We have completed and announced the results of two Phase 1 studies in DMG. There is an ongoing Phase 1 investigator-initiated
trial in medulloblastoma.
Our
clinical assets are supported by three proprietary drug delivery technologies focused on improving bio-delivery and bio-distribution of
drugs through either sustained delivery (Q-SpheraTM), direct delivery (MidaSolveTM), or targeted delivery (MidaCoreTM):
| · | Our Q-Sphera platform: Our disruptive polymer microsphere microtechnology
is used for sustained delivery to prolong and control the release of therapeutics over an extended period of time, from weeks to months. |
| · | Our MidaSolve platform: Our innovative oligosaccharide nanotechnology
is used to solubilize drugs so that they can be administered in liquid form directly and locally into tumors. |
| · | MidaCore platform: Our gold nanoparticle nanotechnology is used
for targeting sites of disease by using either chemotherapeutic agents or immunotherapeutic agents. |
We are currently focused on our clinical stage assets and there are no active research
and development programs based on our drug delivery technologies.
Recent Developments
Registered Direct Offering and Concurrent Private
Placement
On July 22, 2024, we completed the closing
of a registered direct offering, or the July 2024 Registered Direct Offering (and collectively with the July 2024 Private Placement, the
Offerings), with certain institutional investors, or the Investors, for the sale of (i) an aggregate of 5,050,808 Depositary Shares, and
(ii) an aggregate of 278,975 pre-funded warrants exercisable for Depositary Shares, or the July 2024 Pre-Funded Warrants, at a price per
Depositary Share of $0.94, and a price per July 2024 Pre-Funded Warrant of $0.9399. The aggregate
gross proceeds to the Company were approximately $5.0 million, before deducting the
placement agent’s fees and related offering expenses.
The
July 2024 Pre-Funded Warrants were sold, in lieu of Depositary Shares, to the Investors such
that the Investors’ purchase of Depositary Shares in the Registered Direct Offering would not otherwise result in the Investor,
together with their affiliates and certain related parties, beneficially owning more than 4.99% or 9.99% of our Ordinary Shares immediately
following the consummation of the Registered Direct Offering. Each July 2024 Pre-Funded Warrant
represents the right to purchase one Depositary Share at an exercise price of $0.0001 per share. The July 2024 Pre-Funded
Warrants are exercisable immediately and may be exercised at any time until the July 2024 Pre-Funded
Warrants are exercised in full.
Additionally, in the concurrent July 2024
Private Placement, we issued and sold to the Investors (i) Series J Warrants exercisable for 5,329,783 Depositary Shares, and (ii) Series
K Warrants to purchase an aggregate of 5,329,783 Depositary Shares. The Private Placement Warrants are immediately exercisable at an exercise
price of US$1.00 per Depositary Share, subject to adjustments for certain dilutive equity issuances. The Series J Warrants will expire
five years from the initial exercise date and the Series K Warrants will expire one year from the initial exercise date. The Investors
(together with their respective affiliates) may not exercise the Private Placement Warrants if the Investor would beneficially own more
than 4.99% or 9.99% (such amount to be determined at the option of the Investor upon issuance) of the number of Ordinary Shares outstanding
immediately after giving effect to such exercise. The Purchase Agreement contains customary representations, warranties and covenants
of the Company and each Investor, and customary indemnification provisions for a transaction of this type. Pursuant to the terms of the
Purchase Agreement, we agreed to be subject to a lock-up period on subsequent equity sales which will last until
the earlier of (i) 90 days following the closing of the Offerings or (ii) the trading day following the date the Depositary Shares’
closing price exceeds $2.00. We also agreed to not issue any securities that are subject to a price reset based on the trading
prices of our Ordinary Shares or upon a specified or contingent event in the future or enter into any agreement to issue securities at
a future determined price for a period of 180 days following the closing date of the Offerings, subject to certain exceptions. Additionally,
we agreed to reduce the exercise price of our existing Series E warrants, Series G warrants and Series H warrants held by each Investor
to $1.00 per Depositary Share.
In connection with the Offerings, we entered
into a placement agency agreement, or the Placement Agent Agreement, with Ladenburg Thalmann & Co. Inc., or Ladenburg, pursuant to
which we engaged Ladenburg as the exclusive placement agent for the Offerings. We agreed to pay Ladenburg a cash fee in an amount equal
to 8.0% of the aggregate gross proceeds of the Offerings and to issue to Ladenburg or its designees the July 2024 Placement Agent Warrants.
We also agreed to pay Ladenburg a management fee equal to 1.0% of the gross proceeds raised in the Offerings and an expense allowance
of up to $85,000 for legal fees and other out-of-pocket expenses. The July 2024 Placement Agent Warrant has substantially the same terms
as the Series J Warrants, except that the exercise price of the July 2024 Placement Agent Warrants is $1.25 and the term of the July 2024
Placement Agent Warrants will terminate on the three-year anniversary of the initial exercise date.
Our Corporate Information
Our principal executive
offices are located at 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ, United Kingdom. The telephone number at our principal executive
office is +44 29 20480 180. Our corporate website is located at www.biodexahpharma.com. Information contained on our website is not part
of, or incorporated in, this prospectus. Our authorized representative in the United States is Donald J. Puglisi of Puglisi and Associates.
Our agent for service in the United States is Donald J. Puglisi of Puglisi and Associates, located at 850 Library Avenue, Suite 204, Newark,
Delaware 19711. Our Depositary Shares are traded on the NASDAQ Capital Market under the symbol “BDRX”
Implications of Being a Foreign Private Issuer
We are incorporated as a public limited
company in England and Wales, are we are deemed to be a “foreign private issuer” for the purposes of the reporting rules under
the Securities Exchange Act of 1934, as amended, or the Exchange Act. In our capacity as a foreign private issuer, we are exempt from
certain rules under the Exchange Act that would otherwise apply if we were a company incorporated in the United States, including:
| · | the requirement to file periodic reports and financial statements with the SEC as frequently or as promptly
as United States companies with securities registered under the Exchange Act; |
| · | the requirement to file financial statements in accordance with accounting principles generally accepted
in the United States, or U.S. GAAP; |
| · | the proxy rules, which impose certain disclosure and procedural requirements for proxy solicitations;
and |
| · | the requirement to comply with Regulation FD, which imposes certain restrictions on the selective disclosure
of material information. |
In addition, our officers, directors and
principal shareholders are exempt from the reporting and “short-swing” profit recovery provisions of Section 16 of the Exchange
Act and the rules under the Exchange Act with respect to their purchases and sales of our Ordinary Shares. Accordingly, an investor may
receive less information about us that it would receive about a public company incorporated in the United States.
| The Offering |
| |
| Depositary Shares offered by the Selling Shareholders |
|
An aggregate of 4,349,102,800 Ordinary Shares of the Company represented by 10,872,757 Depositary Shares, consisting of (1) 5,329,783 Ordinary Shares represented by 2,131,913,200 Depositary Shares, issuable upon the exercise of Series J Warrants, (2) 5,329,783 Ordinary Shares represented by 2,131,913,200 Depositary Shares, issuable upon the exercise of Series K Warrants, and (3) 85,276,400 Ordinary Shares represented by 213,191 Depositary Shares, issuable upon the exercise of July 2024 Placement Agent Warrants. The selling shareholders are identified in the table commencing on page 57. |
| |
|
|
| Total Ordinary Shares outstanding immediately prior to this offering |
|
5,808,395,322 Ordinary Shares (including those represented by Depositary Shares). |
| |
|
|
| Total Ordinary Shares to be outstanding immediately after this offering |
|
10,157,498,122 Ordinary Shares (including those represented by Depositary Shares), assuming all warrants are exercised in full. |
| |
|
|
| Depositary Shares |
|
Each Depositary Share represents 400 Ordinary Shares.
The depositary (through its custodian) will hold the Ordinary
Shares underlying your Depositary Shares. You will have rights as provided in the deposit agreement among us, JPMorgan Bank Chase Bank,
N.A., as depositary, and all owners and holders from time to time of Depositary Shares issued thereunder. You may, among other things,
cancel your Depositary Shares and withdraw the underlying Ordinary Shares against a fee paid to the depositary (which may be reimbursable
by the Company). In certain limited instances described in the deposit agreement, we may amend or terminate the deposit agreement without
your consent. If you continue to hold your Depositary Shares, you agree to be bound by the terms of the deposit agreement then in effect.
To better understand the terms of the Depositary Shares and
the deposit agreement, including applicable fees and charges, you should carefully read “Description of American Depositary Shares”
in this prospectus. You should also read the deposit agreement, which is an exhibit to the registration statement that includes this prospectus. |
| |
|
|
| Depositary |
|
JPMorgan Chase Bank, N.A. |
| |
|
|
| Use of proceeds |
|
We will not receive any proceeds from the sale of the Ordinary Shares represented by Depositary Shares by the selling shareholders. All net proceeds from the sale of the Ordinary Shares represented by Depositary Shares covered by this prospectus will go to the selling shareholders. However, we will receive the proceeds from any exercise of the warrants exercised for cash. See the section of this prospectus titled “Use of Proceeds.” |
| |
|
|
| Risk factors |
|
You should read the “Risk Factors” section starting on page 7 of this prospectus for a discussion of factors to consider before deciding to invest in our securities. |
| |
|
|
| Dividend policy |
|
We have never declared or paid any cash dividends to our shareholders, and we currently do not expect to declare or pay any cash dividends in the foreseeable future. See “Dividend Policy.” |
| |
|
|
| Listing |
|
Our Depositary Shares are listed on the NASDAQ Capital Market under the symbol “BDRX.” |
RISK FACTORS
Our business has significant risks. In
addition to the other information included in this annual report, including the matters addressed in the section of the annual report
entitled “Cautionary Note Regarding Forward-Looking Statements” and in our financial statements and the related notes, you
should consider carefully the risks described below. The risks and uncertainties described below are not the only risks and uncertainties
we may face. Additional risks and uncertainties not presently known to us, or that we currently consider immaterial could also negatively
affect our business, financial condition, results of operations, prospects, profits and stock prices. If any of the risks described below
actually occur, our business, financial condition, results of operations, prospects, profits and stock prices could be materially adversely
affected.
The sale of a substantial amount of our Ordinary Shares
(represented by Depositary Shares), including resale of the Ordinary Shares (represented by Depositary Shares) issuable upon the exercise
of the warrants held by the selling shareholders in the public market, could adversely affect the prevailing market price of our Ordinary
Shares and/or Depositary Shares.
We are registering
for resale 4,349,102,800 Ordinary Shares represented by 10,872,757 Depositary Shares held by the selling shareholders, including shares
issuable upon the exercise of warrants held by the selling shareholders. Sales of substantial amounts of our Ordinary Shares and/or Depositary
Shares in the public market, or the perception that such sales may occur, could adversely affect the market price of our Ordinary Shares
and/or Depositary Shares. We cannot predict if and when selling shareholders may sell such shares in the public markets. Furthermore,
in the future, we may issue additional Ordinary Shares (including Ordinary Shares represented by Depositary Shares). Any such issuance
could result in substantial dilution to our existing shareholders and could cause our share price to decline.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains certain forward-looking
information about the Company that is intended to be covered by the safe harbor for “forward-looking statements” provided
by the Private Securities Litigation Reform Act of 1995. These statements may be made directly in this prospectus or may be incorporated
into this prospectus by reference to other documents. Our representatives may also make forward-looking statements. Forward-looking statements
are statements that are not historical facts. Words such as “expect,” “believe,” “will,” “may,”
“anticipate,” “plan,” “estimate,” “intend,” “should,” “can,” “likely,”
“could” and similar expressions are intended to identify forward-looking statements. Forward-looking statements appear in
a number of places throughout this prospectus and include statements regarding our intentions, beliefs, assumptions, projections, outlook,
analyses or current expectations concerning, among other things, our intellectual property position, success integrating acquisitions,
research and development projects, results of operations, cash needs, capital expenditures, financial condition, liquidity, prospects,
growth and strategies, regulatory approvals and clearances, the markets and industry in which we operate and the trends and competition
that may affect the markets, industry or us.
These forward-looking statements are based
on currently available competitive, financial and economic data together with management’s views and assumptions regarding future
events and business performance as of the time the statements are made and are subject to risks and uncertainties. We wish to caution
you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance
or achievements expressed or implied by such forward-looking statements, including but not limited to risks related to:
| · | our requirement for additional financing and our ability to continue as a going concern; |
| · | our estimates regarding losses, expenses, future revenues, capital requirements and needs for additional
financing; |
| · | our ability to successfully develop, test and partner with a licensee to manufacture or commercialize
products for conditions using our technology platforms; |
| · | the successful commercialization and manufacturing of our any future product we may commercialize or license; |
| · | the success and timing of our preclinical studies and clinical trials; |
| · | shifts in our business and commercial strategy; |
| · | the filing and timing of regulatory filings, including Investigational New Drug applications, with respect to any of our product candidates
and the receipt of any regulatory approvals; |
| · | the anticipated medical benefits of our product candidates; |
| · | the difficulties in obtaining and maintaining regulatory approval of our product candidates, and the labeling
under any approval we may obtain; |
| · | the success and timing of the potential commercial development of our product candidates and any product
candidates we may acquire in the future, including eRapa, tolimidone and MTX110; |
| · | our plans and ability to develop and commercialize our product candidates and any product candidates we
may acquire in the future; |
| · | the ability to manufacture products in third-party facilities; |
| · | the rate and degree of market acceptance of any of our product candidates; |
| · | the successful development of our commercialization capabilities, including our internal sales and marketing
capabilities; |
| · | obtaining and maintaining intellectual property protection for our product candidates and our proprietary
technology; |
| · | the success of competing therapies and products that are or become available; |
| · | the success of any future acquisitions or other strategic transactions; |
| · | the difficulties of integrating the business of any future acquisitions into our own; |
| · | cybersecurity and other cyber incidents; |
| · | the impact of government laws and regulations; |
| · | regulatory, economic and political developments in the United Kingdom, the European Union, the United
States and other foreign countries, including any impact from the United Kingdom leaving the European Union; |
| · | the difficulties doing business internationally; |
| · | the ownership of our Ordinary Shares and Depositary Shares; |
| · | our ability to continue to meet the listing criteria required to remain listed on the NASDAQ Capital Market; |
| · | our ability to recruit or retain key scientific or management personnel or to retain our senior management; |
| · | the impact and costs and expenses of any litigation we may be subject to now or in the future; |
| · | the performance of third parties, including joint venture partners, our current sales force, our collaborators,
third-party suppliers and parties to our licensing agreements; and |
| · | other risks and uncertainties, including those described in “Risk Factors” in this
prospectus. |
Any forward-looking statements that we make
in this prospectus speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events
or circumstances after the date of this prospectus or to reflect the occurrence of unanticipated events. Comparisons of results for current
and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and
should only be viewed as historical data. You should, however, review the factors and risks we describe in the reports we will file from
time to time with the SEC after the date of this prospectus. See “Where You Can Find More Information.”
You should also read carefully the factors
described in “Risk Factors” in this prospectus, as well as elsewhere in this prospectus, to better understand the risks
and uncertainties inherent in our business and underlying any forward-looking statements. As a result of these factors, we cannot assure
you that the forward-looking statements in this prospectus will prove to be accurate. Furthermore, if our forward-looking statements prove
to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should
not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in
any specified timeframe, or at all.
USE OF PROCEEDS
We will not receive
any proceeds from the sale or other disposition of the Ordinary Shares represented by Depositary Shares by the selling shareholders pursuant
to this prospectus. Upon any exercise of the warrants for cash, the applicable selling shareholder would pay us the exercise price set
forth in the applicable warrant.
We expect that the selling shareholders
will sell their Ordinary Shares represented by Depositary Shares as described under “Plan of Distribution.”
DIVIDEND POLICY
Since inception,
we have never declared or paid any cash dividends on our Ordinary Shares and do not anticipate paying any cash dividends on our Ordinary
Shares or the Depositary Shares in the foreseeable future. We intend to retain all available funds and any future earnings to fund the
development and expansion of our business. As a result, investors in the Ordinary Shares and Depositary Shares will benefit in the foreseeable
future only if the Ordinary Shares and Depositary Shares appreciate in value.
Any determination
to pay dividends in the future would be at the discretion of our Board of Directors and will depend upon our results of operations, cash
requirements, financial condition, contractual restrictions, and any future debt agreements and is subject to compliance with applicable
laws, including the United Kingdom Companies Act of 2006, or the Companies Act, which requires English companies to have profits available
for distribution equal to or greater than the amount of the proposed dividend.
CAPITALIZATION
The following table sets forth our capitalization
as of December 31, 2023:
| · | on a pro forma as-adjusted basis to give effect to (i) the transactions contemplated by that certain License
and Collaboration Agreement, dated as of April 24, 2024, or the Emtora License Agreement, by and between the Company and Emtora, (ii)
the transactions contemplated by those certain letter agreements, dated as of May 22, 2024, by and between the Company and certain accredited
investors, or the Warrant Agreements, and (iii) the issuance and sale by us of 5,050,808 Depositary Shares and 278,975 July 2024 Pre-Funded
Warrants (representing an aggregate of 2,131,913,200 Ordinary Shares) in the Offering at an offering price of $0.94 per Depositary Share
and $0.9399 per July 2024 Pre-Funded Warrant, in each case after deducting placement agent fees and estimated offering expenses by us. |
The adjusted amounts shown below are unaudited
and represent management’s estimate. You should read this table in conjunction with the section
of this prospectus under the caption “Use of Proceeds” and our consolidated financial statements and other financial
information included or incorporated by reference in this prospectus.
| (£ in thousands) | |
| |
| | |
As of December 31, 2023 | |
| | |
Actual | | |
Pro Forma As-Adjusted
(unaudited) (1) | |
| | |
| | |
| |
| Cash and cash equivalents | |
| 5,971 | | |
| 13,362 | |
| Borrowings, non-current | |
| 295 | | |
| 295 | |
| Total equity | |
| 4,678 | | |
| 12,299 | |
| Total capitalization | |
| 4,973 | | |
| 12,594 | |
| (1) | All proceeds from the sale of the securities have been reflected within Total equity for purposes of this
table. We will be required to complete an assessment of the accounting and valuation for such instruments, which may result in a portion
of the proceeds being classified outside of Total equity and remeasured to fair value each reporting period (if liability-classified instruments).
Such assessment will be completed in connection with the preparation of our consolidated financial statements for the period in which
the sales occur. |
The table above does not include:
| · | 111,590 Ordinary Shares issuable upon the exercise of stock options outstanding under our equity incentive plans at a weighted-average
exercise price of £0.005 per share; |
| · | 128 Ordinary Shares issuable upon the exercise of stock options assumed in connection with the acquisition of DARA BioSciences, Inc.,
or DARA, at a weighted average exercise price of £877.13 per share; |
| · | warrants exercisable for 10,597,597 Depositary Shares (representing 4,239,038,800 Ordinary Shares, including pr-funded warrants, at
a weighted-average exercise price of £1.73 per share; and |
| · | warrants issuable in connection with the Offerings. |
DESCRIPTION OF OFFERED SECURITIES AND SHARE CAPITAL
The following describes our issued share
capital, summarizes the material provisions of our Articles of Association and highlights certain differences in corporate law in the
United Kingdom and the United State. This description of our share capital and summary of our Articles of Association is not complete,
and is qualified by reference to our Articles of Association. You should read our Articles of Association, which are filed as an exhibit
to the registration statement of which this prospectus forms a part, for the provisions that are important to you.
General
We are a public limited company organized
under the laws of England and Wales under registered number 09216368. Our registered office is 1 Caspian Point, Caspian Way, Cardiff,
CF10 4DQ, United Kingdom. The principal legislation under which we operate and our shares are issued is the United Kingdom Companies Act
of 2006, or the Companies Act.
Issued Share Capital
Our issued share capital as of July 23,
2024 was 5,808,395,322. Each Ordinary Share has a nominal value £0.001 per share. Each issued Ordinary Share is fully paid. We currently
have 1,000,001 A Deferred Shares, 4,063,321,418 B Deferred Shares and no preference shares in our issued share capital.
There is no limit to the number of Ordinary
Shares or preference shares that we are authorized to issue, as the concept of authorized capital is no longer applicable under the provisions
of the Companies Act. There are no conversion rights, redemption provisions or sinking fund provisions relating to any Ordinary Shares.
We are not permitted under English law to
hold our own Ordinary Shares unless they are repurchased by us and held in treasury. We do not currently hold any of our own Ordinary
Shares.
History of Share Capital
On March 22, 2022, we issued one Ordinary
Share upon the exercise of one warrant issued in February 2019 to a certain institutional investor at an exercise price of £200
per share.
On May 3, 2022,
we issued 1,250 Ordinary Shares to be purchased under the Share Incentive Plan at £0.02 per share to the trust of the Share Incentive
Plan.
On August 3, 2022,
we issued warrants to purchase 16,666 Ordinary Shares to a certain institutional investor at an exercise price of £2.70 per share.
On September 26,
2022, we effected a ratio change to the Depositary Shares, pursuant to which the ratio of Ordinary Shares to Depositary Shares was changed
such that one Depositary Share represented 25 Ordinary Shares. Our Ordinary Shares were not affected by this change and no fractional
Depositary Shares were issued.
On December 16,
2022, we sold to an institutional investor 492,400 Ordinary Shares represented by 1,231 Depositary Shares in a registered direct offering
at $320.00 per Depositary Share, resulting in gross proceeds of approximately $0.4 million.
On
February 15, 2023, we completed the closing of a private placement, or the February Private Placement, pursuant to which we sold to certain
institutional investors (i) 3,250,000 Ordinary Shares represented by 8,125 Depositary Shares at $185.60 per Depositary Share, (ii)
12,931,020 Ordinary Shares represented by 32,327 Depositary Shares, issuable upon the exercise of Series A warrants, or Series A Warrants,
issued in the February Private Placement at an exercise price of $214.40 per warrant, (iii) 19,396,400 Ordinary Shares represented
by 48,491 Depositary Shares, issuable upon the exercise of Series B warrants, or the Series B Warrants, issued in the February Private
Placement at an exercise price of $214.40 per warrant, and (iv) 62,184,525 Ordinary Shares represented by 155,461 Depositary Shares,
issuable upon the exercise of pre-funded warrants issued in the February Private Placement at an exercise price of $0.032 per warrant,
for aggregate gross proceeds of approximately $6.0 million. We also issued unregistered warrants to the placement agent in the offering,
or the February Placement Agent Warrants, to purchase a total of 536,800 Ordinary Shares represented by 1,342 Depositary Shares to the
placement agent at an exercise price of $400.00 per warrant for 49 warrants and an exercise price of $232.00 per warrant for 1,293 warrants,
and Series A Warrants to purchase 625,000 Ordinary Shares represented by 1,562 Depositary Shares at an exercise price of $214.40
per warrant to an investor pursuant to a waiver.
On March 27, 2023,
following shareholder approval, we effected a one-for-20 reverse split of our Ordinary Shares, and our Ordinary Shares began trading on
AIM on a split-adjusted basis as of such date. No fractional shares were issued in connection with the reverse stock split.
Concurrently with
the reverse split, and in an effort to bring the Depositary Shares price into compliance with NASDAQ’s minimum requirement for 500,000
listed Depositary Shares, on March 27, 2023, we effected a ratio change in the number of our Ordinary Shares represented by the Depositary
Shares from 25 Ordinary Shares per Depositary Share to five Ordinary Shares per Depositary Share. No fractional Depositary Shares were
issued.
Between March 27,
2023 and July 23, 2024, we have issued 95,137,075 Ordinary Shares upon the exercise of 237,841 pre-funded warrants, Series A Warrants
and Series B Warrants issued in the February Private Placement.
On May 26, 2023,
we completed the closing of a registered direct offering, or May 2023 Registered Direct Offering, with institutional investors of (i)
166,017,700 Ordinary Shares represented by 415,044 Depositary Shares, issuable upon the exercise of the Series C warrants, or Series C
Warrants, at an exercise price of $16.00 per warrant, (ii) 110,675,600 Ordinary Shares represented by 279,689 Depositary Shares issuable
upon the exercise of the Series D Warrants at an exercise price of $16.00 per warrant and, (iii) 4,426,800 Ordinary Shares represented
by 11,067 Depositary Shares issuable upon the exercise of warrants issued to the placement agent in the offering at an exercise price
of $15.00 per warrant.
On June 20, 2023,
we issued the Series C Warrants, Series D Warrants and warrants issued to the placement agent after receiving required shareholder approval
of the allotment of, and disapplication of pre-emption rights with respect to the Ordinary Shares to be issued under the warrants at our
June GM.
Between June 20,
2023, and July 23, 2024, we have issued 166,017,700 Ordinary Shares upon the exercise of 415,044 Series C Warrants issued in the May 2023
Registered Direct Offering.
On July 5, 2023,
we effected a ratio change to the Depositary Shares, pursuant to which the ratio of Ordinary Shares to Depositary Shares was changed such
that one Depositary Share represented 400 Ordinary Shares. Our Ordinary Shares were not affected by this change and no fractional Depositary
Shares were issued.
On November 22, 2023, we entered into a
series of agreements with (i) Adhera Therapeutics, Inc. and certain of its secured noteholders, or the Secured Noteholders, and (ii)
Melior Pharmaceuticals I, Inc., or Melior. On December 21, 2023, in connection with the closing under the agreements, we issued (i) an
aggregate of (a) 224,947 Depositary Shares to certain of the Secured Noteholders and (b) 2,275,050 pre-funded warrants to purchase Depositary
Shares to certain of the Secured Noteholders, or the December 2023 Private Placement Pre-Funded Warrants, and (ii) 354,428 Depositary
Shares to Melior. Between December 21, 2023 and July 23, 2024, we have issued 180,322,400 Ordinary Shares upon the exercise of 450,806
pre-funded warrants issued to the Secured Noteholders.
On December 21,
2023, we completed the closing of an underwritten public offering, pursuant to which we issued and sold (i) 1,088,887 Class A units, or
Class A Units, at a public offering price of $2.00 per Class A Unit, with each Class A Unit consisting of (a) one Depositary Share, (b)
one Series E Warrant, and (c) one Series F Warrant, and (ii) 1,911,176 Class B units, or Class B Units, at a public offering price of
$1.9999 per Class B Unit, with each Class B Unit consisting of (a) one pre-funded warrant, exercisable for one Depositary Share, or the
December 2023 Public Offering Pre-Funded Warrants, (b) one Series E Warrant, and (c) one Series F Warrant. The aggregate gross proceeds
to the Company were approximately $6.0 million. Additionally, we issued warrants to purchase 120,003 of our Depositary Shares in connection
with the offering to the underwriter, or the December 2023 Underwriter Warrants.
On February 26,
2024, in connection with our obligations under a license agreement with Melior, we issued 354,428 Depositary Shares to Bukwang Pharmaceuticals
Co. Ltd.
On April 29, 2024, in connection with the
closing of the Emtora License Agreement, we issued 378,163 Depositary Shares to Emtora.
On May 24, 2024, in connection with the
transactions contemplated by the Warrant Agreements, we issued an aggregate of 3,104,566 Depositary Shares to certain holders of our Series
E Warrants and Series F Warrants, upon the exercise of 1,572,674 Series E Warrants and 1,531,892 Series F Warrants, at an exercise price
of $1.50 per share. In addition, we issued to such holders an aggregate of 2,359,012 Series G Warrants and 3,695,218 Series H Warrants.
The aggregate gross proceeds to the Company were approximately $6.05 million, before deducting agent fees and expenses. Additionally,
we issued warrants to purchase 161,446 of our Depositary Shares in connection with the offering to Ladenburg, as agent, and certain designees
of Ladenburg, or Warrant Agent Warrants.
Between December
21, 2023 and July 23, 2024, we have issued 2,266,906,800 Ordinary Shares upon the exercise of the pre-funded warrants, Series E Warrants
and Series F Warrants issued in the December 2023 underwritten public offering, including warrants exercised pursuant to the terms of
the Warrant Agreements (other than shares held in abeyance).
On July 22, 2024, we completed the Offerings
with the Investors, pursuant to which we sold in the Registered Direct Offering an aggregate of (i) 5,050,808 Depositary Shares and (ii)
278,975 July 2024 Pre-Funded Warrants, at a price per Depositary Share of $0.94, and a price per July 2024 Pre-Funded Warrant of $0.9399,
and in the concurrent July 2024 Private Placement, we issued and sold to the Investors (x) Series J Warrants exercisable for 5,329,783
Depositary Shares, and (y) Series K Warrants to purchase an aggregate of 5,329,783 Depositary Shares. The Private Placement Warrants are
immediately exercisable at an exercise price of US$1.00 per Depositary Share, subject to adjustments for certain dilutive equity issuances.
The aggregate gross proceeds to the Company were approximately $5.0 million. Additionally, we issued July 2024 Placement Agent Warrants
to purchase 213,191 of our Depositary Shares in connection with the offering to Ladenburg and certain designees of Ladenburg.
Options
The
Board of Directors has established the Biodexa Pharmaceuticals PLC Enterprise Management Incentive and Unapproved Share Option Scheme,
or Plan, to allow us to grant options to purchase Ordinary Shares (in the form of Depositary Shares) to employees and directors of the
Company or any of its subsidiaries for the purpose of attracting, rewarding and retaining such persons. The Plan was originally adopted
in December 2014 and amended on April 11, 2024 to govern the grant of tax-advantaged enterprise management incentive stock options and
unapproved stock options by the Company. As of December 31, 2023, there were options to purchase 111,590 Ordinary Shares. The options
lapse after ten years from the date of the grant. As of December 31, 2023, the weighted average remaining life of the options was 7.3
years.
In connection with our acquisition of DARA
in December 2015, we assumed all of DARA’s outstanding options, or DARA Options. As of December 31, 2023 there were outstanding
DARA Options to purchase 128 Ordinary Shares with a weighted average remaining life of 1.0 years.
Warrants
October 2019 and May 2020 Warrants
In October 2019,
we completed a private placement with certain institutional investors, or the October Private Placement, where we issued warrants to certain
investors, or the October Private Placement Warrants, and the placement agent, Wainwright, or the Wainwright October Warrants. In May
2020, we completed a private placement with certain institutional investors, or the May Private Placement, where we issued warrants to
certain investors, or the May Private Placement Warrants, the placement agent, Wainwright, or the Wainwright May Warrants and Armistice,
or the May Armistice Warrants. The following is a brief summary of the October Private Placement Warrants, Wainwright October Warrants,
May Private Placement Warrants, Wainwright May Warrants and the May Armistice Warrants issued in connection with the October Private Placement
and May Private Placement, as applicable, and is subject in all respects to the provisions contained in the applicable warrants, which,
with respect to the October Private Placement Warrants and Wainwright October Warrants, are filed as exhibits to our Report on Form 6-K
dated October 24, 2019, and for the May Private Placement Warrants, May Armistice Warrants and Wainwright May Warrants, are filed as exhibits
to our Report on Form 6-K dated May 20, 2020. On December 13, 2022, the exercise price of the October Private Placement Warrants granted
to Armistice and the May Private Placement Warrants was reduced to $320.00. Unless otherwise stated, references to warrants in this section
include the October Private Placement Warrants, May Private Placement Warrants, Wainwright October Warrants and Wainwright May Warrants.
Exercisability.
The October Private Placement Warrants and Wainwright October Warrants became exercisable on December 23, 2019. The May Private Placement
Warrants, May Armistice Warrants and Wainwright May Warrants became exercisable upon issuance. The October Private Placement Warrants,
May Private Placement Warrants and May Armistice Warrants will expire five and one-half years from the initial exercise date, and the
Wainwright October Warrants and Wainwright May Warrants will expire on October 22, 2024 and May 18, 2025, respectively. The holder shall
deliver the aggregate exercise price for the Depositary Shares specified in the exercise notice within two trading days following the
date of exercise (subject to the ‘cashless exercise’ arrangements described below).
Cashless Exercise. With
respect to the October Private Placement Warrants and Wainwright October Warrants, if, more than six months after the date of issuance
of such warrants, there is no effective registration statement registering, or no current prospectus available for, the resale of the
Depositary Shares underlying such warrants, the holder may exercise the warrant, in whole or in part, on a cashless basis. With respect
to the May Private Placement Warrants and Wainwright May Warrants, if there is no effective registration statement registering, or no
current prospectus available for, the resale of the Depositary Shares underlying such warrants, the holder may exercise the warrant, in
whole or in part, on a cashless basis.
Exercise Price. The
exercise price of (i) each October Private Placement Warrant and Wainwright October Warrant is $320.00 and $10,000.00 per Depositary Share,
respectively and (ii) each May Private Placement Warrant, May Armistice Warrant and Wainwright May Warrant is $3,280.00, $320.00 and $3,300.00
per Depositary Share, respectively, each subject to the ‘cashless exercise’ arrangements described above and to adjustment
as described below.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a warrant, to the extent that, after giving effect to such
exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together with such holder or any
such affiliate, would beneficially own in excess of, at the initial option of the holder thereof, 4.99% or 9.99%, as applicable, of the
number of Ordinary Shares outstanding immediately after giving effect to the issuance of the Ordinary Shares underlying the Depositary
Shares upon such exercise. The holder of the warrant, upon notice to us, may increase or decrease the beneficial ownership limitation
to a percentage not to exceed 9.99%, provided that any increase in the beneficial ownership limitation shall not be effective until 61
days following notice to us. Beneficial ownership of the holder and its affiliates will be determined in accordance with Section 13(d)
of the Exchange Act, and the rules and regulations promulgated thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each warrant will be adjusted by multiplying the then
exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury shares, if any) outstanding
immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding immediately after such
event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a warrant will be entitled to acquire, subject to the beneficial ownership limitation
described above, such securities or property that such holder could have acquired if such holder had held the number of Depositary Shares
issuable upon complete exercise of the warrant immediately prior to the date a record is taken for such issuance. If we declare or make
any dividend or other distribution of assets or rights to acquire assets to holders of Depositary Shares or Ordinary Shares, a holder
of a warrant will be entitled to participate, subject to the beneficial ownership limitation, in such distribution to the same extent
that the holder would have participated therein if the holder had held the number of Depositary Shares issuable upon full exercise of
the warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a warrant, the holder thereof
shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have been issuable upon such
exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring
corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental
transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the warrant is exercisable immediately
prior to such fundamental transaction.
Transferability. Each
warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the warrant, together with a written assignment
of the warrant subject to applicable securities laws; provided, however, that the Wainwright October Warrants and Wainwright May Warrants
are subject to certain FINRA transfer restrictions. We do not intend to apply for listing of the warrants on any securities exchange or
other trading system.
No Rights as
Shareholder Until Exercise. Except as set forth in the warrants, the holders of the warrants do not have any voting rights, dividends
or other rights as a holder of our capital stock until they exercise the warrants.
May 2020 United Kingdom Placing Warrants
On May 22, 2020, we issued 333,333 units, with each unit comprising
one new ordinary share and one warrant. The exercise price of the warrants is £6.80 per share, and it expires five years and six
months from the issuance date. We also issued warrants to purchase a total of 16,400 ordinary shares to Turner Pope, the placing agent,
in connection with the closing of such offering, on the same terms and conditions as the other investors in the offering.
August 2022 Warrants
On August 3, 2022, we issued warrants to
purchase 16,400 Ordinary Shares to Strand Hanson Limited, in payment for services rendered. The exercise price of such warrants is £2.70
per share and they expire three years from the issuance date.
February Placement Agent Warrants
The following is
a brief summary of the February Placement Agent Warrants issued in connection with the February Private Placement and is subject in all
respects to the provisions contained in the warrant, which is filed as an exhibit to our Report on Form 6-K dated February 9, 2023. All
pre-funded warrants, Series A Warrants and Series B Warrants issued in connection with the February Private Placement have been exercised.
Exercisability.
The February Placement Agent Warrants are exercisable and expire three years from the initial exercise date. The holder shall deliver
the aggregate exercise price for the Depositary Shares specified in the exercise notice within two trading days following the date of
exercise (subject to the ‘cashless exercise’ arrangements described below).
Cashless Exercise. The
February Placement Agent Warrants may only be exercised on a cashless basis if, following a date that is six months from the original
issuance date, at the time of exercise, there is no effective registration statement registering with a current prospectus available for
resale of the Depositary Shares underlying the February Placement Agent Warrants.
Exercise Price. The
exercise price of a portion of the February Placement Agent Warrants are $400.00 per Depositary Share and another portion is $232.00 per
Depositary Share, respectively, each subject to the ‘cashless exercise’ arrangements described above and to adjustment as
described herein.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a February Placement Agent Warrant, to the extent that, after
giving effect to such exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together
with such holder or any such affiliate, would beneficially own in excess of 4.99% of the number of Ordinary Shares outstanding immediately
after giving effect to the issuance of the Ordinary Shares underlying the Depositary Shares upon such exercise. The holder of such warrant,
upon notice to us, may increase or decrease the beneficial ownership limitation to a percentage not to exceed 9.99%, provided that any
increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us. Beneficial ownership of the
holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange Act, and the rules and regulations promulgated
thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each February Placement Agent Warrant will be adjusted
by multiplying the then exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury
shares, if any) outstanding immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding
immediately after such event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a February Placement Agent Warrant will be entitled to acquire, subject to the beneficial
ownership limitation described above, such securities or property that such holder could have acquired if such holder had held the number
of Depositary Shares issuable upon complete exercise of the February Placement Agent Warrant immediately prior to the date a record is
taken for such issuance. If we declare or make any dividend or other distribution of assets or rights to acquire assets to holders of
Depositary Shares or Ordinary Shares, a holder of a February Placement Agent Warrant will be entitled to participate, subject to the beneficial
ownership limitation, in such distribution to the same extent that the holder would have participated therein if the holder had held the
number of Depositary Shares issuable upon full exercise of the February Placement Agent Warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a February Placement Agent
Warrant, the holder thereof shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have
been issuable upon such exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s
or acquiring corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result
of such fundamental transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the February
Placement Agent Warrant is exercisable immediately prior to such fundamental transaction. In addition, in the event of a fundamental transaction
that is (i) an all cash or substantially all cash transaction, (ii) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under
the Exchange Act, or (iii) with certain limited exceptions, a fundamental transaction involving a person or entity not traded on a national
securities exchange or other established trading market, including, but not limited to, the London Stock Exchange, AIM, The New York Stock
Exchange, Inc., The NYSE MKT, The NASDAQ Global Select Market, The NASDAQ Global Market, The NASDAQ Capital Market, the OTC QX, the OTC
QB or the Over-the-Counter Bulletin Board, then the Company or any successor entity will pay at the holder’s option, exercisable
at any time concurrently with or within 30 days after the consummation of the fundamental transaction, an amount of cash equal to the
value of the February Placement Agent Warrant as determined in accordance with the Black Scholes option pricing model.
Transferability. Each
placement agent warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the placement agent warrant,
together with a written assignment of the warrant subject to applicable securities laws; provided, however, that the placement agent warrants
are subject to certain FINRA transfer restrictions. We do not intend to apply for listing of the placement agent warrants on any securities
exchange or other trading system.
No Rights as
Shareholder Until Exercise. Except as set forth in the placement agent warrants, the holders of the placement agent warrants
do not have any voting rights, dividends or other rights as a holder of our capital stock until they exercise the placement agent warrants.
Series D Warrants and May 2023 Placement Agent Warrants
The following is
a brief summary of the Series D Warrants and the placement agent warrants, or the May 2023 Placement Agent Warrants, issued in connection
with the May 2023 Registered Direct Offering, and is subject in all respects to the provisions contained in the applicable warrants, which,
are filed as exhibits to our Report on Form 6-K dated May 24, 2023. Unless otherwise stated, references to warrants in this subsection
include the Series D Warrants and the May 2023 Placement Agent Warrants. All Series C Warrants in the offering have been exercised.
Exercisability.
The warrants became exercisable on June 14, 2023. The Series D Warrants and May 2023 Placement Agent Warrants expire five years and three
years, respectively, from the initial exercise date. The holder shall deliver the aggregate exercise price for the Depositary Shares specified
in the exercise notice within two trading days following the date of exercise (subject to the ‘cashless exercise’ arrangements
described below).
Cashless Exercise. The
Series D Warrants and May 2023 Placement Agent Warrants may be exercised on a cashless basis, if and only if, we have not filed a registration
statement registering the Depositary Shares underlying such warrants within six months of the initial exercise date.
Exercise Price. The
exercise price of each Series D Warrant is $16.00 per Depositary Share and the exercise price of each May 2023 Placement Agent Warrant
is $15.00 per Depositary Share.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a warrant, to the extent that, after giving effect to such
exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together with such holder or any
such affiliate, would beneficially own in excess of 9.99% (or in the case of the May 2023 Placement Agent Warrants, 4.99%), of the number
of Ordinary Shares outstanding immediately after giving effect to the issuance of the Ordinary Shares underlying the Depositary Shares
upon such exercise. The holder of the warrant, upon notice to us, may increase or decrease the beneficial ownership limitation to a percentage
not to exceed 9.99%, provided that any increase in the beneficial ownership limitation shall not be effective until 61 days following
notice to us. Beneficial ownership of the holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange
Act, and the rules and regulations promulgated thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each warrant will be adjusted by multiplying the then
exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury shares, if any) outstanding
immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding immediately after such
event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a warrant will be entitled to acquire, subject to the beneficial ownership limitation
described above, such securities or property that such holder could have acquired if such holder had held the number of Depositary Shares
issuable upon complete exercise of the warrant immediately prior to the date a record is taken for such issuance. If we declare or make
any dividend or other distribution of assets or rights to acquire assets to holders of Depositary Shares or Ordinary Shares, a holder
of a warrant will be entitled to participate, subject to the beneficial ownership limitation, in such distribution to the same extent
that the holder would have participated therein if the holder had held the number of Depositary Shares issuable upon full exercise of
the warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a warrant, the holder thereof
shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have been issuable upon such
exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring
corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental
transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the warrant is exercisable immediately
prior to such fundamental transaction. In addition, with respect to the Series C Warrants, Series D Warrants and the May 2023 Placement
Agent Warrants, in the event of a fundamental transaction that is (i) an all cash or substantially all cash transaction, (ii) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (iii) with certain limited exceptions, a fundamental transaction
involving a person or entity not traded on a national securities exchange or other established trading market, including, but not limited
to, the London Stock Exchange, AIM, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global Select Market, The NASDAQ Global
Market, The NASDAQ Capital Market, the OTC QX, the OTC QB or the Over-the-Counter Bulletin Board, then the Company or any successor entity
will pay at the holder’s option, exercisable at any time concurrently with or within 30 days after the consummation of the fundamental
transaction, an amount of cash equal to the value of the warrant as determined in accordance with the Black Scholes option pricing model.
Transferability. Each
warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the warrant, together with a written assignment
of the warrant subject to applicable securities laws; provided, however, that the May 2023 Placement Agent Warrants are subject to certain
FINRA transfer restrictions. We do not intend to apply for listing of the warrants on any securities exchange or other trading system.
No
Rights as Shareholder Until Exercise. Except as set forth in the warrants, the holders of the warrants do not have any voting
rights, dividends or other rights as a holder of our capital stock until they exercise the warrants.
Series E Warrants, Series F Warrants,
December 2023 Private Placement Pre-Funded Warrants, December Public Offering Pre-Funded Warrants and December 2023 Underwriter Warrants
The
following is a brief summary of the Series E Warrants, Series F Warrants, December 2023 Private Placement Pre-Funded Warrants, December
Public Offering Pre-Funded Warrants and the December 2023 Underwriter Warrants issued in connection with the December Private Placements
and the December Public Offering, and is subject in all respects to the provisions contained in the applicable warrants, which
are filed as exhibits to our Report on Form 6-K dated December 21, 2023. Unless otherwise stated,
references to warrants in this subsection include the Series E Warrants, Series F Warrants, the December 2023 Private Placement Pre-Funded
Warrants, December Public Offering Pre-Funded Warrants and the December 2023 Underwriter Warrants.
Exercisability.
The warrants became exercisable on December 21, 2023. The Series E Warrants, Series F Warrants and December
2023 Underwriter Warrants expire five years, one year and three years, respectively from the initial exercise date. The December
2023 Private Placement Pre-Funded Warrants and December Public Offering Pre-Funded
Warrants are exercisable at any time and do not expire. The holder shall deliver the aggregate exercise price for the Depositary
Shares specified in the exercise notice within two trading days following the date of exercise (subject to the ‘cashless exercise’
arrangements described below).
Cashless Exercise. If,
at the time a holder exercises its Series E Warrants or Series F Warrants, a registration statement registering the issuance of the
securities underlying the Series E Warrants or Series F Warrants under the Securities Act is not then effective or available and
an exemption from registration under the Securities Act is not available for the issuance of such shares, then in lieu of making the cash
payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead
to receive upon such exercise (either in whole or in part) the net number of Depositary Shares determined according to a formula set forth
in the Series E Warrants and Series F Warrants.
At the time a holder
exercises its December 2023 Private Placement Pre-Funded Warrants or December
Public Offering Pre-Funded Warrants, in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise
in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in part) the
net number of Depositary Shares determined according to a formula set forth in the December
2023 Private Placement Pre-Funded Warrants or December Public Offering Pre-Funded
Warrants, as applicable.
Exercise Price. The
exercise price of each Series E Warrant, Series F Warrant, December 2023 Underwriter Warrant, December
2023 Private Placement Pre-Funded Warrant and December Public Offering Pre-Funded
Warrants is $2.20, $2.20, $2.50, $0.0001 and $0.0001 per Depositary Share.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a warrant, to the extent that, after giving effect to such
exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together with such holder or any
such affiliate, would beneficially own in excess of 9.99% (or in the case of the December 2023 Underwriter
Warrants, 4.99%), of the number of Ordinary Shares outstanding immediately after giving effect to the issuance of the Ordinary Shares
underlying the Depositary Shares upon such exercise. The holder of the warrant, upon notice to us, may increase or decrease the beneficial
ownership limitation to a percentage not to exceed 9.99%, provided that any increase in the beneficial ownership limitation shall not
be effective until 61 days following notice to us. Beneficial ownership of the holder and its affiliates will be determined in accordance
with Section 13(d) of the Exchange Act, and the rules and regulations promulgated thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each warrant will be adjusted by multiplying the then
exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury shares, if any) outstanding
immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding immediately after such
event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a warrant will be entitled to acquire, subject to the beneficial ownership limitation
described above, such securities or property that such holder could have acquired if such holder had held the number of Depositary Shares
issuable upon complete exercise of the warrant immediately prior to the date a record is taken for such issuance. If we declare or make
any dividend or other distribution of assets or rights to acquire assets to holders of Depositary Shares or Ordinary Shares, a holder
of a warrant will be entitled to participate, subject to the beneficial ownership limitation, in such distribution to the same extent
that the holder would have participated therein if the holder had held the number of Depositary Shares issuable upon full exercise of
the warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a warrant, the holder thereof
shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have been issuable upon such
exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring
corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental
transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the warrant is exercisable immediately
prior to such fundamental transaction. In addition, with respect to the Series E Warrants, Series F Warrants and the December
2023 Underwriter Warrants, in the event of a fundamental transaction that is (i) an all cash or substantially all cash transaction,
(ii) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (iii) with certain limited exceptions,
a fundamental transaction involving a person or entity not traded on a national securities exchange or other established trading market,
including, but not limited to, the London Stock Exchange, AIM, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global Select
Market, The NASDAQ Global Market, The NASDAQ Capital Market, the OTC QX, the OTC QB or the Over-the-Counter Bulletin Board, then the Company
or any successor entity will pay at the holder’s option, exercisable at any time concurrently with or within 30 days after the consummation
of the fundamental transaction, an amount of cash equal to the value of the warrant as determined in accordance with the Black Scholes
option pricing model.
Transferability. Each
warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the warrant, together with a written assignment
of the warrant subject to applicable securities laws; provided, however, that the Underwriter Warrants are subject to certain FINRA transfer
restrictions. We do not intend to apply for listing of the warrants on any securities exchange or other trading system.
No
Rights as Shareholder Until Exercise. Except as set forth in the warrants, the holders of the warrants do not have any voting
rights, dividends or other rights as a holder of our capital stock until they exercise the warrants.
Series G Warrants, Series H Warrants
and Warrant Agent Warrants
The
following is a brief summary of the Series G Warrants, Series H Warrants and Warrant Agent Warrants issued in connection with the Closing
and is subject in all respects to the provisions contained in the applicable warrants, which are filed as exhibits to our Report
on Form 6-K dated May 22, 2024. Unless otherwise stated, references to warrants in this subsection
include the Series G Warrants, Series H Warrants and Warrant Agent Warrants.
Exercisability.
The warrants became exercisable on May 24, 2024. The Series G Warrants, Series H Warrants and Warrant
Agent Warrants expire five years, five years and three years, respectively from the initial exercise date. The holder shall deliver
the aggregate exercise price for the Depositary Shares specified in the exercise notice within two trading days following the date of
exercise (subject to the ‘cashless exercise’ arrangements described below).
Cashless Exercise. If,
at the time a holder exercises its warrants, a registration statement registering the issuance of the securities underlying the warrants
under the Securities Act is not then effective or available and an exemption from registration under the Securities Act is not available
for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in
payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in part) the net
number of Depositary Shares determined according to a formula set forth in the warrants.
Exercise Price. The
exercise price of each Series G Warrant, Series H Warrant and Warrant Agent Warrants is
$2.50 per Depositary Share.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a warrant, to the extent that, after giving effect to such
exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together with such holder or any
such affiliate, would beneficially own in excess of 9.99% or 4.99%, at the holders determination, of the number of Ordinary Shares outstanding
immediately after giving effect to the issuance of the Ordinary Shares underlying the Depositary Shares upon such exercise. The holder
of the warrant, upon notice to us, may increase or decrease the beneficial ownership limitation to a percentage not to exceed 9.99%, provided
that any increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us. Beneficial ownership
of the holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange Act, and the rules and regulations
promulgated thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each warrant will be adjusted by multiplying the then
exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury shares, if any) outstanding
immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding immediately after such
event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a warrant will be entitled to acquire, subject to the beneficial ownership limitation
described above, such securities or property that such holder could have acquired if such holder had held the number of Depositary Shares
issuable upon complete exercise of the warrant immediately prior to the date a record is taken for such issuance. If we declare or make
any dividend or other distribution of assets or rights to acquire assets to holders of Depositary Shares or Ordinary Shares, a holder
of a warrant will be entitled to participate, subject to the beneficial ownership limitation, in such distribution to the same extent
that the holder would have participated therein if the holder had held the number of Depositary Shares issuable upon full exercise of
the warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a warrant, the holder thereof
shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have been issuable upon such
exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring
corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental
transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the warrant is exercisable immediately
prior to such fundamental transaction. In addition, in the event of a fundamental transaction that is (i) an all cash or substantially
all cash transaction, (ii) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (iii) with certain
limited exceptions, a fundamental transaction involving a person or entity not traded on a national securities exchange or other established
trading market, including, but not limited to, the London Stock Exchange, AIM, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ
Global Select Market, The NASDAQ Global Market, The NASDAQ Capital Market, the OTC QX, the OTC QB or the Over-the-Counter Bulletin Board,
then the Company or any successor entity will pay at the holder’s option, exercisable at any time concurrently with or within 30
days after the consummation of the fundamental transaction, an amount of cash equal to the value of the warrant as determined in accordance
with the Black Scholes option pricing model.
Transferability. Each
warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the warrant, together with a written assignment
of the warrant subject to applicable securities laws; provided, however, that the Warrant Agent Warrants are subject to certain FINRA
transfer restrictions. We do not intend to apply for listing of the warrants on any securities exchange or other trading system.
No
Rights as Shareholder Until Exercise. Except as set forth in the warrants, the holders of the warrants do not have any voting
rights, dividends or other rights as a holder of our capital stock until they exercise the warrants.
Series J Warrants, Series K Warrants
and July 2024 Placement Agent Warrants
The
following is a brief summary of the Series J Warrants, Series K Warrants and July 2024 Placement Agent Warrants issued in connection with
the July 2024 Private Placement, and is subject in all respects to the provisions contained in the applicable warrants, which are
filed as exhibits to our Report on Form 6-K dated July 19, 2024. Unless otherwise stated, references
to “warrants” in this subsection include the Series J Warrants, Series K Warrants and July 2024 Placement Agent Warrants.
Exercisability.
The warrants became exercisable on July 22, 2024. The Series J Warrants, Series K Warrants and July
2024 Placement Agent Warrants expire five years, five years and three years, respectively from the initial exercise date. The holder
shall deliver the aggregate exercise price for the Depositary Shares specified in the exercise notice within two trading days following
the date of exercise (subject to the ‘cashless exercise’ arrangements described below).
Cashless Exercise. If,
following the date that is six months from the initial issuance date of the warrant, a registration statement registering the issuance
of the securities underlying the warrants under the Securities Act is not then effective, or the prospectus contained therein is not available
for the resale of the securities issuable upon exercise of the applicable warrants, then in lieu of making the cash payment otherwise
contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon
such exercise (either in whole or in part) the net number of Depositary Shares determined according to a formula set forth in the warrants.
Exercise Price. The
exercise price of each Series J Warrant, Series K Warrant and July 2024 Placement Agent Warrant
is $1.00 per Depositary Share, $1.00 per Depositary Share, and $1.25 per Depositary Share, respectively.
Beneficial Ownership
Limitation. A holder shall have no right to exercise any portion of a warrant, to the extent that, after giving effect to such
exercise, such holder, together with such holder’s affiliates, and any persons acting as a group together with such holder or any
such affiliate, would beneficially own in excess of 9.99% or 4.99%, at the holders determination, of the number of Ordinary Shares outstanding
immediately after giving effect to the issuance of the Ordinary Shares underlying the Depositary Shares upon such exercise. The holder
of the warrant, upon notice to us, may increase or decrease the beneficial ownership limitation to a percentage not to exceed 9.99%, provided
that any increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us. Beneficial ownership
of the holder and its affiliates will be determined in accordance with Section 13(d) of the Exchange Act, and the rules and regulations
promulgated thereunder.
Stock dividends
and stock splits. If we pay a stock dividend or otherwise make a distribution payable in Depositary Shares or Ordinary Shares,
or any other equity or equivalent securities, subdivide or combine outstanding Depositary Shares or Ordinary Shares, or reclassify Depositary
Shares, Ordinary Shares or any shares of our capital stock, the exercise price of each warrant will be adjusted by multiplying the then
exercise price by a fraction, the numerator of which shall be the number of Depositary Shares (excluding treasury shares, if any) outstanding
immediately before such event, and the denominator of which shall be the number of Depositary Shares outstanding immediately after such
event.
Rights Offerings;
pro rata distributions. If we issue Ordinary Share equivalents or rights to purchase shares, warrants, securities or other property
pro rata to holders of Depositary Shares, a holder of a warrant will be entitled to acquire, subject to the beneficial ownership limitation
described above, such securities or property that such holder could have acquired if such holder had held the number of Depositary Shares
issuable upon complete exercise of the warrant immediately prior to the date a record is taken for such issuance. If we declare or make
any dividend or other distribution of assets or rights to acquire assets to holders of Depositary Shares or Ordinary Shares, a holder
of a warrant will be entitled to participate, subject to the beneficial ownership limitation, in such distribution to the same extent
that the holder would have participated therein if the holder had held the number of Depositary Shares issuable upon full exercise of
the warrant.
Fundamental
Transaction. If we effect a fundamental transaction, including, among other things, a merger, sale of substantially all of our assets,
tender offer, exchange offer and other business combination transactions, then upon any subsequent exercise of a warrant, the holder thereof
shall have the right to receive, for each Ordinary Share represented by the Depositary Shares that would have been issuable upon such
exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring
corporation’s securities, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental
transaction by a holder of the number of Ordinary Shares represented by the Depositary Shares for which the warrant is exercisable immediately
prior to such fundamental transaction. In addition, in the event of a fundamental transaction that is (i) an all cash or substantially
all cash transaction, (ii) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (iii) with certain
limited exceptions, a fundamental transaction involving a person or entity not traded on a national securities exchange or other established
trading market, including, but not limited to, the London Stock Exchange, AIM, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ
Global Select Market, The NASDAQ Global Market, The NASDAQ Capital Market, the OTC QX, the OTC QB or the Over-the-Counter Bulletin Board,
then the Company or any successor entity will pay at the holder’s option, exercisable at any time concurrently with or within 30
days after the consummation of the fundamental transaction, an amount of cash equal to the value of the warrant as determined in accordance
with the Black Scholes option pricing model.
Transferability. Each
warrant and all rights thereunder are transferable, in whole or in part, upon surrender of the warrant, together with a written assignment
of the warrant subject to applicable securities laws; provided, however, that the Warrant Agent Warrants are subject to certain FINRA
transfer restrictions. We do not intend to apply for listing of the warrants on any securities exchange or other trading system.
No
Rights as Shareholder Until Exercise. Except as set forth in the warrants, the holders of the warrants do not have any voting
rights, dividends or other rights as a holder of our capital stock until they exercise the warrants.
Articles of Association
The following
is a summary of certain provisions of our articles of association. Please note that this is only a summary and is not intended to be exhaustive.
For further information please refer to the full version of our articles of association, which is included as an exhibit to this Registration
Statement on Form F-1.
Shares and Rights Attaching to
Them
Objects
The objects of our Company are unrestricted.
Share Rights
Subject to any special rights attaching
to shares already in issue, our shares may be issued with or have attached to them any preferred, deferred or other special rights or
privileges or be subject to such restrictions as we may resolve by ordinary resolution of the shareholders or decision of our board.
Voting Rights
Without prejudice to any rights or restrictions
as to voting rights attached to any shares forming part of our share capital from time to time, the voting rights attaching to shares
are as follows:
| · | on a show of hands every shareholder who is present in person and each duly authorized representative
present in person of a shareholder that is a corporation shall have one vote; |
| · | on a show of hands, each proxy present in person has one vote for and one vote against a resolution if
the proxy has been duly appointed by more than one shareholder and the proxy has been instructed by one or more of those shareholders
to vote for the resolution and by one or more other of those shareholders to vote against it; |
| · | on a show of hands, each proxy present in person has one vote for and one vote against a resolution if
the proxy has been duly appointed by more than one shareholder entitled to vote on the resolution and either: (1) the proxy has been instructed
by one or more of those shareholders to vote for the resolution and has been given any discretion by one or more other of those shareholders
to vote and the proxy exercises that discretion to vote against it; or (2) the proxy has been instructed by one or more of those shareholders
to vote against the resolution and has been given any discretion by one or more other of those shareholders to vote and the proxy exercises
that discretion to vote for it; and |
| · | on a poll every shareholder who is present in person or by proxy shall have one vote for each share of
which he is the holder. |
At any general meeting a resolution put
to the vote of the meeting shall be decided on a show of hands unless a poll is demanded. Subject to the provisions of the Companies Act,
as described in “Differences in Corporate Law - Voting Rights” in this prospectus, a poll may be demanded by:
| · | the chairman of the meeting; |
| · | at least five shareholders present in person or by proxy and entitled to vote; |
| · | any shareholder(s) present in person or by proxy and representing in the aggregate not less than 10% of
the total voting rights of all shareholders having the right to vote on the resolution; or |
| · | any shareholder(s) present in person or by proxy and holding shares conferring a right to vote on the
resolution on which there have been paid up sums in the aggregate equal to not less than 10% of the total sums paid up on all shares conferring
that right. |
Restrictions on Voting
No shareholder shall be entitled to vote
at any general meeting or at any separate class meeting in respect of any share held by him unless all calls or other sums payable by
him in respect of that share have been paid.
The Board of Directors may from time to
time make calls upon the shareholders in respect of any money unpaid on their shares and each shareholder shall (subject to at least 14
days’ notice specifying the time or times and place of payment) pay at the time or times so specified the amount called on his shares.
If a call remains unpaid after it has become due and payable, and the fourteen days’ notice provided by the Board of Directors has
not been complied with, any share in respect of which such notice was given may be forfeited by a resolution of the Board of Directors.
A shareholder’s right to attend general
or class meetings of the Company or to vote in respect of his shares may be suspended by the Board of Directors in accordance with our
Articles of Association if he fails to comply with a proper request for the disclosure of interests regarding the shares. See “Other
United Kingdom Law Considerations—Disclosure of Interest in Shares” in this prospectus.
Dividends
We may, by ordinary resolution, declare
a dividend to be paid to the share owners according to their respective rights and interests in profits, and may fix the time for payment
of such dividend. No dividend may be declared in excess of the amount recommended by the directors. The Board of Directors may from time
to time declare and pay to our share owners such interim dividends as appear to the directors to be justified by our profits available
for distribution. There are no fixed dates on which entitlement to dividends arises on our Ordinary Shares.
The share owners may pass on the recommendation
of the directors, an ordinary resolution to direct that all or any part of a dividend to be paid by distributing specific assets, in particular
paid up shares or debentures of any other body corporate. Our articles of association also permit, with the prior authority of an ordinary
resolution of shareholders, a scrip dividend scheme under which share owners may be given the opportunity to elect to receive fully paid
Ordinary Shares instead of cash, or a combination of shares and cash, with respect to future dividends.
By the way of the exercise of a lien, if
a share owner owes us any money relating in any way to shares, the Board of Directors may deduct any of this money from any dividend on
any shares held by the share owner, or from other money payable by us in respect of the shares. Money deducted in this way may be used
to pay the amount owed to us.
Unclaimed dividends and other money payable
in respect of a share can be invested or otherwise used by directors for our benefit until they are claimed. A dividend or other money
remaining unclaimed 12 years after it first became due for payment will be forfeited and shall revert to the Company.
A shareholder’s right to receive dividends
on his shares may, if they represent more than 0.25% of the issued shares of that class, be suspended by the directors if he fails to
comply with a proper request for the disclosure of interests regarding the shares. See “Other United Kingdom Law Considerations—Disclosure
of Interests in Shares” in this prospectus.
Change of Control
There is no specific provision in our Articles
of Association that would have the effect of delaying, deferring or preventing a change of control. We are, however, subject to the provisions
of the City Code, which contains detailed provisions regulating the timing and manner of any takeover offer for those of the Company’s
shares which confer voting rights. See “Other United Kingdom Law Considerations—City Code on Takeovers and Mergers”
in this prospectus.
Variation of Rights
Whenever our share capital is divided into
different classes of shares, all or any of the rights attached to any class may be varied or abrogated in such manner (if any) as may
be provided by those rights or (in the absence of any such provision) either with the consent in writing of the holders of at least 75%
of the issued shares of that class or with the authority of a special resolution passed at a separate general meeting of the holders of
the shares of that class.
Alteration of Share Capital and Repurchases
Subject to the provisions of the Companies
Act, and without prejudice to any relevant special rights attached to any class of shares, we may, from time to time:
| · | increase our share capital by allotting and issuing new shares in accordance with our articles of association
and any relevant shareholder resolution; |
| · | consolidate all or any of our share capital into shares of a larger nominal amount (i.e., par value) than
the existing shares; |
| · | subdivide any of our shares into shares of a smaller nominal amount (i.e., par value) than our existing
shares; or |
| · | redenominate our share capital or any class of share capital. |
Preemptive Rights and New Issuance of Shares
Under the Companies Act, the issuance of
equity securities (except shares held under an employees’ share scheme) that are to be paid for wholly in cash must be offered first
to the existing holders of equity securities in proportion to the respective nominal amounts (i.e., par values) of their holdings on the
same or more favorable terms, unless a special resolution to the contrary has been passed or the articles of association otherwise provide
an exclusion from this requirement (which exclusion can be for a maximum of five years after which our shareholders’ approval would
be required to renew the exclusion). In this context, “equity securities” means ordinary shares (and would exclude shares
that, with respect to dividends or capital, carry a right to participate only up to a specified amount in a distribution), and any and
all rights to subscribe for or convert securities into such ordinary shares. This differs from U.S. law, under which shareholders generally
do not have pre-emptive rights unless specifically granted in the certificate of incorporation or otherwise.
The
Board seeks general authority to allot shares on a non-pre-emptive basis at each annual general meeting. By way of resolutions passed
at our annual general meetings held on June 14, 2023 and June 13, 2024, authorities were given to the directors to generally allot shares
in the Company, or to grant rights to subscribe for or to convert or exchange any security into shares in the Company, up to an aggregate
nominal amount of £140,000,000, for a period up to the conclusion of our annual general meeting to be held in 2027. Pre-emptive
rights under the Companies Act will not apply in respect of allotment of shares for cash made pursuant to such authority.
Transfer of Shares
Any certificated shareholder may transfer
all or any of his shares by an instrument of transfer in the usual common form or in any other manner which is permitted by the Companies
Act and approved by the Board of Directors. Any written instrument of transfer shall be signed by or on behalf of the transferor and (in
the case of a partly paid share) the transferee.
All transfers of uncertificated shares shall
be made in accordance with and subject to the provisions of the Uncertificated Securities Regulations 2001 and the facilities and requirements
of its relevant system. The Uncertificated Securities Regulations 2001 permit shares to be issued and held in uncertificated form and
transferred by means of a computer-based system.
The Board of Directors may decline to register
any transfer of any share unless it is:
| · | a share on which the Company has no lien; |
| · | in respect of only one class of shares; |
| · | in favor of a single transferee or not more than four transferees; |
| · | duly stamped or duly certificated or otherwise shown the satisfaction of the Board of Directors to be
exempt from any required stamp duty; or |
| · | delivered for registration at the Company’s registered office or such other place as the Board of
Directors may decide, accompanied by the certificate for the shares to which it relates (other than uncertificated shares) and any other
evidence the Board of Directors may reasonably require to provide the title to such share of the transferor. |
If the Board of Directors declines to register
a transfer it shall, as soon as practicable and in any event within two months after the date on which the transfer is lodged, send to
the transferee notice of the refusal, together with reasons for the refusal.
CREST
CREST is a computerized paperless share
transfer and settlement system which allows securities to be transferred by electronic means, without the need for a written instrument
of transfer. The Articles of Association are consistent with CREST membership and, among other things, allow for the holding and transfer
of shares in uncertificated form.
Shareholder Meetings
Annual General Meetings
In accordance with the Companies Act, we
are required in each year to hold an annual general meeting in addition to any other general meetings in that year and to specify the
meeting as such in the notice convening it. The annual general meeting shall be convened whenever and wherever the board sees fit, subject
to the requirements of the Companies Act, as described in “Differences in Corporate Law—Annual General Meeting” and
“Differences in Corporate Law—Notice of General Meetings” in this prospectus.
Notice of General Meetings
The arrangements for the calling of general
meetings are described in “Differences in Corporate Law—Notice of General Meetings” in this prospectus.
Subject to certain conditions, holders of
Depositary Shares are entitled to receive notices under the terms of the deposit agreement relating to the Depositary Shares. See “Description
of American Depositary Shares—Voting Rights” in this prospectus.
Quorum of General Meetings
No business shall be transacted at any general
meeting unless a quorum is present, but the absence of a quorum shall not preclude the appointment, choice or election of a chairman which
shall not be treated as part of the business of the meeting. At least two shareholders present in person or by proxy and entitled to vote
shall be a quorum for all purposes.
Class Meetings
The provisions in the Articles of Association
relating to general meetings apply to every separate general meeting of the holders of a class of shares except that:
| · | no member, other than a member of the Board of Directors, shall be entitled to notice of it or attend
such meeting unless he is a holder of shares of that class; |
| · | the quorum for such class meeting shall be two holders in person or by proxy representing not less than
one-third in nominal value of the issued shares of the class; |
| · | at the class meeting, a holder of shares of the class present in person or by proxy may demand a poll
and shall on a poll be entitled to one vote for every share of the class held by him; and |
| · | if at any adjourned meeting of such holders a quorum is not present at the meeting, one holder of shares
of the class present in person or by proxy at an adjourned meeting constitutes a quorum. |
Directors
Number of Directors
We may not have less than two directors
on our Board of Directors. We have no maximum number of directors, though we may fix a maximum number by ordinary resolution of the shareholders.
We may, by ordinary resolution of the shareholders, vary the minimum and any maximum number of directors from time to time.
Appointment of Directors
Subject to the provisions of the Articles
of Association, we may, by ordinary resolution of the shareholders, elect any person to be a director, either to fill a casual vacancy
or as an addition to the existing board.
Without prejudice to the power to appoint
any person to be a director by shareholder resolution, the Board of Directors has the power to appoint any person to be a director, either
to fill a casual vacancy or as an addition to the existing Board of Directors. Any director appointed by the Board of Directors will hold
office only until the earlier to occur of the close of the next following annual general meeting and someone being appointed in his stead
at that meeting. Such a director is eligible for re-election at that meeting but shall not be taken into account in determining the directors
or the number of directors who are to retire by rotation at such meeting.
Rotation of Directors
At every annual general meeting, one-third
of the directors or, if their number is not a multiple of three, then the number nearest to and not exceeding one-third, shall retire
from office and each director must retire from office at least once every three years. If there are fewer than three directors, one director
shall make himself or herself available for re-election.
The directors to retire on each occasion
shall be those subject to retirement by rotation who have been longest in office since their last election, but as between persons who
became or were re-elected directors on the same day those to retire shall (unless they otherwise agree amongst themselves) be determined
by lot.
A director who retires at the annual general
meeting shall be eligible for re-election.
The shareholders may, at the meeting at
which a director retires, fill the vacated office by electing a person and in default the retiring director shall, if willing to continue
to act, be deemed to have been re-elected, unless at such meeting it is expressly resolved not to fill such vacated office or unless a
resolution for the re-election of such director shall have been put to the meeting and lost or such director has given notice in writing
to us that he is unwilling to be re-elected or such director has attained the retirement age applicable to him as director pursuant to
the Companies Act.
Director’s Interests
The Board of Directors may authorize, to
the fullest extent permitted by law, any matter proposed to them which would otherwise result in a director infringing his duty to avoid
a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with our interests and
which may reasonably be regarded as likely to give rise to a conflict of interest. A director shall not, save as otherwise agreed by him,
be accountable to us for any benefit which he (or a person connected with him) derives from any matter authorized by the directors and
any contract, transaction or arrangement relating thereto shall not be liable to be avoided on the grounds of any such benefit.
Subject to the requirements under Sections
175, 177 and 182 of the Companies Act (which require a director to avoid a situation in which he has, or can have, a direct or indirect
interest that conflicts, or possibly conflicts, with our interests, and to declare any interest that he has, whether directly or indirectly,
in a proposed or existing transaction or arrangement with us), and provided that he has disclosed to the Board of Directors the nature
and extent of any interest of his in accordance with the Companies Act and the Articles of Association, a director notwithstanding his
office:
| · | may be a party to, or otherwise interested in, any transaction or arrangement with us or in which we are
otherwise interested; |
| · | may be a director or other officer of, or employed by, or a party to any transaction or arrangement with,
or otherwise interested in, any body corporate promoted by us or in which we are otherwise interested; and |
| · | shall not, by reason of his office, be accountable to us for any benefit which he derives from any such
office or employment or from any such transaction or arrangement or from any interest in any such body corporate and no such transaction
or arrangement shall be liable to be avoided on the ground of any such interest or benefit. |
In the case of interests arising where a
director is in any way, directly or indirectly, interested in (a) a proposed transaction or arrangement with us or (b) a transaction or
arrangement that has been entered into by us and save as otherwise provided by the Articles of Association, such director shall not vote
at a meeting of the Board of Directors or of a committee of the Board of Directors on any resolution concerning such matter in which he
has a material interest (otherwise than by virtue of his interest in shares, debentures or other securities of, or otherwise in or through,
us) unless his interest or duty arises only because the case falls within one or more of the following paragraphs:
| · | the resolution relates to the giving to him or a person connected with him of a guarantee, security or
indemnity in respect of money lent to, or an obligation incurred by him or such a person at the request of or for the benefit of, us or
any of our subsidiaries; |
| · | the resolution relates to the giving of a guarantee, security or indemnity in respect of a debt or obligation
of ours or any of our subsidiaries for which the director or a person connected with him has assumed responsibility in whole or part under
a guarantee or indemnity or by the giving of security; |
| · | the resolution relates in any way to any other company in which he is interested, directly or indirectly
and whether as an officer or shareholder or otherwise howsoever, provided that he and any persons connected with him do not to his knowledge
hold an interest in shares representing one per cent or more of any class of the equity share capital of such company or of the voting
rights available to shareholder of such company; |
| · | the resolution relates in any way to an arrangement for the benefit of our employees or any employees
of our subsidiaries which does not award him as such any privilege or benefit not generally awarded to the employees to whom such arrangement
relates; |
| · | the resolution relates in any way to the purchase or maintenance for the directors of insurance; or |
| · | the resolution is in respect of any matter in which the interest of the director cannot reasonably be
regarded as conflicting. |
A director shall not be counted in the quorum
present at a meeting in relation to a resolution on which he is not entitled to vote.
If a question arises at a meeting of the
Board of Directors or of a committee of the Board of Directors as to the right of a director to vote or be counted in the quorum, and
such question is not resolved by his voluntarily agreeing to abstain from voting or not to be counted in the quorum, the question may,
before the conclusion of the meeting, be referred to the chairman of the meeting and his ruling in relation to any director other than
himself shall be final and conclusive except in a case where the nature or extent of the interest of the director concerned has not been
fairly disclosed.
An interest of a person connected with a
director shall be treated as an interest of the director and Section 252 of the Companies Act shall determine whether a person is connected
with a director.
Directors’ Fees and Remuneration
Each of the directors shall be paid a fee
at such rate as may from time to time be determined by the Board of Directors (or for the avoidance of doubt any duly authorized committee
of the Board of Directors) provided that the aggregate of all such fees so paid to directors shall not exceed £600,000 per annum,
or such higher amount as may from time to time be determined by ordinary resolution of shareholders.
Each director may be paid his reasonable
traveling, hotel and other expenses of attending and returning from meetings of the Board of Directors or committees thereof of or general
meetings or separate meetings of the holders class of shares or of debentures and shall be paid all expenses properly and reasonably incurred
by him in the conduct of the Company’s business or in the discharge of his duties as a director. Any director who, by request, goes
or resides abroad for any purposes required by us or who performs services which in the opinion of the Board of Directors go beyond the
ordinary duties of a director may be paid such extra remuneration as the Board of Directors may determine.
An executive director shall receive such
remuneration as the Board of Directors may determine, and either in addition to or in lieu of his remuneration as a director as detailed
above.
Age Limitations and Share Ownership
We do not have any age limitations for our
directors, nor do we have mandatory retirement as a result of reaching a certain age. Our directors are not required to hold any shares
in the Company.
Borrowing Power
Our directors may exercise all the powers
of the Company to borrow or raise money and mortgage or charge all or any part of our undertaking, property and assets (present and future),
and uncalled capital. Subject to the Companies Act, the directors may also create and issue debentures, other loan stock and other securities,
whether outright or as collateral security for any debt, liability or obligation of the Company or of any third party. Our directors are
required to restrict the borrowings of the Company to ensure that the aggregate principal amount of borrowings at any one time outstanding
and all of its subsidiary undertakings (other than intra-Group borrowing) shall not at any time, without the previous sanction of an ordinary
resolution of the Company, exceed two times the gross asset value of the Company and our subsidiaries.
Liability of Biodexa and its Directors and Officers
Subject to the provisions on indemnities
set out in Companies Act, every director, alternate director or former director (and of any associated company) shall be entitled to be
indemnified out of our assets against all costs and liabilities incurred by him or her in relation to any proceedings or any regulatory
investigation or action which relate to anything done or omitted or alleged to have been done or omitted by him or her as a director so
long as the indemnities do not cover liability for breach of duty to the Company or cover any fine, costs or related expense in connection
with any proceedings for default on the part of the director. Lawful indemnities extend to the provision of funds to him or her by the
Company to meet expenditure incurred or to be incurred by him in defending himself in any proceedings (whether civil or criminal) or in
connection with an application for statutory relief or in an investigation by a regulatory authority which must however be repaid where
such proceedings, application, investigation or action are in connection with any alleged negligence, default, breach of duty or breach
of trust by him or her in relation to the Company (or any associated company of ours) and he or she is convicted or found in default thereof.
Under English law, any provision that purports to exempt a director of a company (to any extent) from any liability that would otherwise
attach to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company is void.
Under a deed poll declared by us on August
5, 2015, or a Deed of Indemnity, our Board of Directors and our Company Secretary are indemnified against costs and liabilities incurred
in connection with their office, other than any liability owed by such person to the Company itself (or any of our associated entities)
and other than indemnification for liabilities in certain circumstances, which are prohibited by virtue of the Companies Act. The Deed
of Indemnity provides that a director may also be lent sums to finance any relevant defense costs, provided that, in the event such proceedings
involve criminal or civil matters in which the person is convicted or has a judgment made against him or her, then such loan must be repaid.
Our total aggregate liability of Biodexa under the Deed of Indemnity is £5 million.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to a charter provision,
by-law, contract, arrangements, statute or otherwise, we acknowledge that in the opinion of the SEC such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable.
Other United Kingdom Law Considerations
Mandatory Purchases and Acquisitions
Pursuant to Sections 979 to 991 of the Companies
Act, where a takeover offer has been made for us and the offeror has acquired or unconditionally contracted to acquire not less than 90%
in value of the shares to which the offer relates and not less than 90% of the voting rights carried by those shares, the offeror may
give notice to the holder of any shares to which the offer relates which the offeror has not acquired or unconditionally contracted to
acquire that he wishes to acquire, and is entitled to so acquire, those shares on the same terms as the general offer. The offeror would
do so by sending a notice to the outstanding minority shareholders telling them that it will compulsorily acquire their shares. Such notice
must be sent within three months of the last day on which the offer can be accepted in the prescribed manner. The squeeze-out of the minority
shareholders can be completed at the end of six weeks from the date the notice has been given, following which the offeror can execute
a transfer of the outstanding shares in its favor and pay the consideration to us, and we would hold the consideration on trust for the
outstanding minority shareholders. The consideration offered to the outstanding minority shareholders whose shares are compulsorily acquired
under the Companies Act must, in general, be the same as the consideration that was available under the takeover offer.
Sell Out
The Companies Act also gives our minority
shareholders a right to be bought out in certain circumstances by an offeror who has made a takeover offer for all of our shares. The
holder of shares to which the offer relates, and who has not otherwise accepted the offer, may require the offeror to acquire his shares
if, prior to the expiry of the acceptance period for such offer, (i) the offeror has acquired or agreed to acquire not less than 90% in
value of the voting shares, and (ii) not less than 90% of the voting rights carried by those shares. The offeror may impose a time limit
on the rights of minority shareholders to be bought out that is not less than three months after the end of the acceptance period. If
a shareholder exercises his rights to be bought out, the offeror is required to acquire those shares on the terms of this offer or on
such other terms as may be agreed.
Disclosure of Interest in Shares
Pursuant to Part 22 of the Companies Act,
we are empowered by notice in writing to any person whom we know or have reasonable cause to believe to be interested in our shares, or
at any time during the three years immediately preceding the date on which the notice is issued has been so interested, requiring such
person within a reasonable time to disclose to us particulars of that person’s interest and (so far as is within his knowledge)
particulars of any other interest that subsists or subsisted in those shares. The Articles of Association specify that a response is required
from such person within 14 days after service of any such notice.
Under the Articles of Association, if a
person defaults in supplying us with the required particulars in relation to the shares in question, or Default Shares, the directors
may by notice direct that:
| · | in respect of the Default Shares, the relevant member shall not be entitled to attend or vote (either
in person or by proxy) at any general meeting or of a general meeting of the holders of a class of shares or upon any poll or to exercise
any right conferred by the Default Shares; and/or |
| · | where the Default Shares represent at least 0.25% of their class, (a) any dividend (or any part of a dividend)
payable in respect of the Default Shares shall be retained by us without liability to pay interest, (b) the shareholder may not be entitled
to elect to receive shares instead of a dividend, and (c) no transfers by the relevant member of any Default Shares may be registered
(unless the member himself is not in default and the transfer does not relate to Default Shares, the transfer is exempt or that the transfer
is permitted under the U.K. Uncertificated Securities Regulations 2001). |
Purchase of Own Shares
Under English law, a limited company may
only purchase or redeem its own shares out of the distributable profits of the company or the proceeds of a fresh issue of shares made
for the purpose of financing the purchase, provided that they are not restricted from doing so by their articles. A limited company may
not purchase or redeem its own shares if, as a result of the purchase, there would no longer be any issued shares of the company other
than redeemable shares or shares held as treasury shares. Shares must be fully paid in order to be repurchased.
Subject to the above, we may purchase our
own shares in the manner prescribed below. We may make a market purchase of our own fully paid shares pursuant to an ordinary resolution
of shareholders. The resolution authorizing the purchase must:
| · | specify the maximum number of shares authorized to be acquired; |
| · | determine the maximum and minimum prices that may be paid for the shares; and |
| · | specify a date, not being later than five years after the passing of the resolution, on which the authority
to purchase is to expire. |
We may purchase our own fully paid shares
otherwise than on a recognized investment exchange pursuant to a purchase contract authorized by resolution of shareholders before the
purchase takes place. Any authority will not be effective if any shareholder from whom we propose to purchase shares votes on the resolution
and the resolution would not have been passed if he had not done so. The resolution authorizing the purchase must specify a date, not
being later than five years after the passing of the resolution, on which the authority to purchase is to expire.
Distributions and Dividends
Under the Companies Act, before a company
can lawfully make a distribution or dividend, it must ensure that it has sufficient distributable reserves (on a non-consolidated basis).
The basic rule is that a company’s profits available for the purpose of making a distribution are its accumulated, realized profits,
so far as not previously utilized by distribution or capitalization, less its accumulated, realized losses, so far as not previously written
off in a reduction or reorganization of capital duly made. The requirement to have sufficient distributable reserves before a distribution
or dividend can be paid applies to us and to each of our subsidiaries that has been incorporated under English law.
It is not sufficient that we, as a public
company, have made a distributable profit for the purpose of making a distribution. An additional capital maintenance requirement is imposed
on us to ensure that the net worth of the company is at least equal to the amount of its capital. A public company can only make a distribution:
| · | if, at the time that the distribution is made, the amount of its net assets (that is, the total excess
of assets over liabilities) is not less than the total of its called up share capital and undistributable reserves; and |
| · | if, and to the extent that, the distribution itself, at the time that it is made, does not reduce the
amount of the net assets to less than that total. |
City Code on Takeovers and Mergers
The
Company is a public limited company incorporated in, and with its registered office in, the United Kingdom but its securities are not
admitted to trading on a regulated market or multilateral trading facility in the United Kingdom (or a stock exchange in the Channel Islands
or the Isle of Man). The City Code shall only apply to the Company if it is considered by the Panel to have its place of central management
and control in the United Kingdom (or the Channel Islands or the Isle of Man). This is known as the “residency test”. The
way in which the test for central management and control is applied for the purposes of the City Code may be different from the way in
which it is applied by the United Kingdom tax authorities, HMRC. Under the City Code, the Panel typically considers where the majority
of the directors of the Company are resident, amongst other factors, for the purposes of determining where the Company has its place of
central management and control. Three of the four directors of the Company are currently resident in the United Kingdom and the place
of central management and control of the Company is intended, for the time being, to remain in the United Kingdom meaning that the Company
and its shareholders will have the benefit of the protections that the City Code affords, including, but not limited to, under Rule 9
of the City Code as set out below.
The
City Code is issued and administered by the Panel. The City Code provides a framework within which takeovers of companies subject to it
are conducted. In particular, the City Code contains certain rules in respect of mandatory offers. Under Rule 9 of the City Code, if a
person:
| · | acquires an interest in our shares which, when taken together with shares in which he or persons acting
in concert with him are interested, carries 30% or more of the voting rights of our shares; or |
| · | who, together with persons acting in concert with him, is interested in shares that in the aggregate carry
not less than 30% and not more than 50% of the voting rights in us, acquires additional interests in shares that increase the percentage
of shares carrying voting rights in which that person is interested, |
the acquirer, and depending on the circumstances, its concert
parties would be required (except with the consent of the Panel) to make a cash offer for our outstanding shares at a price not less than
the highest price paid for any interests in the shares by the acquirer or its concert parties during the previous 12 months.
Notwithstanding
the above, the Company may cease to be subject to the City Code in the future if there are any changes that lead to the Company being
deemed to no longer have its place of central management and control in the United Kingdom, Channel Islands or the Isle of Man.
Exchange Controls
There are no governmental laws, decrees,
regulations or other legislation in the United Kingdom that may affect the import or export of capital, including the availability of
cash and cash equivalents for use by us, or that may affect the remittance of dividends, interest, or other payments by us to non-resident
holders of our Ordinary Shares or Depositary Shares, other than withholding tax requirements. There is no limitation imposed by English
law or in the Articles of Association on the right of non-residents to hold or vote shares.
Differences in Corporate Law
The
applicable provisions of the Companies Act differ from laws applicable to U.S. corporations and their shareholders. Set forth below is
a summary of certain differences between the provisions of the Companies Act applicable to us and the Delaware General Corporation
Law relating to shareholders’ rights and protections. This summary is not intended to be a complete discussion of the respective
rights and it is qualified in its entirety by reference to English law and Delaware law.
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England and Wales |
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Delaware |
| Number of Directors |
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Under the Companies Act, a public limited company must have at least two directors and the number of directors may be fixed by or in the manner provided in a company’s articles of association. |
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Under Delaware law, a corporation must have at least one director and the number of directors shall be fixed by or in the manner provided in the bylaws. |
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| Removal of Directors |
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Under the Companies Act, shareholders may remove a director without cause by an ordinary resolution (which is passed by a simple majority of those voting in person or by proxy at a general meeting) irrespective of any provisions of any service contract the director has with the company, provided 28 clear days’ notice of the resolution has been given to the company and its shareholders. On receipt of notice of an intended resolution to remove a director, the company must forthwith send a copy of the notice to the director concerned. Certain other procedural requirements under the Companies Act must also be followed such as allowing the director to make representations against his or her removal either at the meeting or in writing. |
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Under Delaware law, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors, except (a) unless the certificate of incorporation provides otherwise, in the case of a corporation whose board of directors is classified, shareholders may effect such removal only for cause, or (b) in the case of a corporation having cumulative voting, if less than the entire board of directors is to be removed, no director may be removed without cause if the votes cast against his removal would be sufficient to elect him if then cumulatively voted at an election of the entire board of directors, or, if there are classes of directors, at an election of the class of directors of which he is a part. |
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Vacancies on Board of
Directors |
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Under English law, the procedure by which directors, other than a company’s initial directors, are appointed is generally set out in a company’s articles of association, provided that where two or more persons are appointed as directors of a public limited company by resolution of the shareholders, resolutions appointing each director must be voted on individually. |
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Under Delaware law, vacancies and newly created directorships may be filled by a majority of the directors then in office (even though less than a quorum) or by a sole remaining director unless (a) otherwise provided in the certificate of incorporation or by-laws of the corporation or (b) the certificate of incorporation directs that a particular class of stock is to elect such director, in which case a majority of the other directors elected by such class, or a sole remaining director elected by such class, will fill such vacancy. |
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| Annual General Meeting |
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Under the Companies Act, a public limited company must hold an annual general meeting in each six-month period following the company’s annual accounting reference date. |
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Under Delaware law, the annual meeting of stockholders shall be held at such place, on such date and at such time as may be designated from time to time by the board of directors or as provided in the certificate of incorporation or by the bylaws. |
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England and Wales |
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Delaware |
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General Meeting
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Under the Companies Act, a general meeting of the shareholders
of a public limited company may be called by the directors.
Shareholders holding at least 5% of the paid-up capital of the
company carrying voting rights at general meetings can require the directors to call a general meeting and, if the directors fail to do
so within a certain period, may themselves convene a general meeting. |
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Under Delaware law, special meetings of the stockholders may be called by the board of directors or by such person or persons as may be authorized by the certificate of incorporation or by the bylaws. |
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Notice of General
Meetings |
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Under the Companies Act, 21 clear days’ notice must be given for an annual general meeting and any resolutions to be proposed at the meeting. Subject to a company’s articles of association providing for a longer period, at least 14 clear days’ notice is required for any other general meeting. In addition, certain matters, such as the removal of directors or auditors, require special notice, which is 28 clear days’ notice. The shareholders of a company may in all cases consent to a shorter notice period, the proportion of shareholders’ consent required being 100% of those entitled to attend and vote in the case of an annual general meeting and, in the case of any other general meeting, a majority in number of the members having a right to attend and vote at the meeting, being a majority who together hold not less than 95% in nominal value of the shares giving a right to attend and vote at the meeting. |
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Under Delaware law, unless otherwise provided in the certificate of incorporation or bylaws, written notice of any meeting of the stockholders must be given to each stockholder entitled to vote at the meeting not less than ten nor more than 60 days before the date of the meeting and shall specify the place, date, hour, and purpose or purposes of the meeting. |
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| Proxy |
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Under the Companies Act, at any meeting of shareholders, a shareholder may designate another person to attend, speak and vote at the meeting on their behalf by proxy. |
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Under Delaware law, at any meeting of stockholders, a stockholder may designate another person to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A director of a Delaware corporation may not issue a proxy representing the director’s voting rights as a director. |
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| Pre-emptive Rights |
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Under the Companies Act, “equity securities,” being (i) shares in the company other than shares that, with respect to dividends and capital, carry a right to participate only up to a specified amount in a distribution (“ordinary shares”) or (ii) rights to subscribe for, or to convert securities into, ordinary shares, proposed to be allotted for cash must be offered first to the existing equity shareholders in the company in proportion to the respective nominal value of their holdings, unless an exception applies or a special resolution to the contrary has been passed by shareholders in a general meeting or the articles of association provide otherwise in each case in accordance with the provisions of the Companies Act. |
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Under Delaware law, shareholders have no preemptive rights to subscribe to additional issues of stock or to any security convertible into such stock unless, and except to the extent that, such rights are expressly provided for in the certificate of incorporation. |
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England and Wales |
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Delaware |
| Authority to Allot |
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Under the Companies Act, the directors of a company must not allot shares or grant of rights to subscribe for or to convert any security into shares unless an exception applies or an ordinary resolution to the contrary has been passed by shareholders in a general meeting or the articles of association provide otherwise in each case in accordance with the provisions of the Companies Act. |
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Under Delaware law, if the corporation’s charter or certificate of incorporation so provides, the board of directors has the power to authorize the issuance of stock. It may authorize capital stock to be issued for consideration consisting of cash, any tangible or intangible property or any benefit to the corporation or any combination thereof. It may determine the amount of such consideration by approving a formula. In the absence of actual fraud in the transaction, the judgment of the directors as to the value of such consideration is conclusive. |
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Liability of Officers and
Directors |
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Under the Companies Act, any provision, whether contained in
a company’s articles of association or any contract or otherwise, that purports to exempt a director of a company, to any extent,
from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust in
relation to the company is void.
Any provision by which a company directly or indirectly provides
an indemnity, to any extent, for a director of the company or of an associated company against any liability attaching to him in connection
with any negligence, default, breach of duty or breach of trust in relation to the company of which he is a director is also void except
as permitted by the Companies Act, which provides exceptions for the company to (a) purchase and maintain insurance against such liability;
(b) provide a “qualifying third party indemnity” (being an indemnity against liability incurred by the director to a person
other than the company or an associated company or criminal proceedings in which he is not convicted); and (c) provide a “qualifying
pension scheme indemnity” (being an indemnity against liability incurred in connection with the company’s activities as trustee
of an occupational pension plan). |
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Under Delaware law, a corporation’s certificate of incorporation
may include a provision eliminating or limiting the personal liability of a director to the corporation and its stockholders for damages
arising from a breach of fiduciary duty as a director. However, no provision can limit the liability of a director for:
· any
breach of the director’s duty of loyalty to the corporation or its stockholders;
· acts
or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
· intentional
or negligent payment of unlawful dividends or stock purchases or redemptions; or
· any
transaction from which the director derives an improper personal benefit. |
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England and Wales |
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Delaware |
| Voting Rights |
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Under English law, unless a poll is demanded by the shareholders
of a company or is required by the chairman of the meeting or the company’s articles of association, shareholders shall vote on
all resolutions on a show of hands. Under the Companies Act, a poll may be demanded by (a) not fewer than five shareholders having the
right to vote on the resolution; (b) any shareholder(s) representing not less than 10% of the total voting rights of all the shareholders
having the right to vote on the resolution; or (c) any shareholder(s) holding shares in the company conferring a right to vote on the
resolution being shares on which an aggregate sum has been paid up equal to not less than 10% of the total sum paid up on all the shares
conferring that right. A company’s articles of association may provide more extensive rights for shareholders to call a poll, and
in our case the number in clause (a) above is reduced from five to three.
Under English law, an ordinary resolution is passed on a show
of hands if it is approved by a simple majority (more than 50%) of the votes cast by shareholders present (in person or by proxy) and
entitled to vote. If a poll is demanded, an ordinary resolution is passed if it is approved by holders representing a simple majority
of the total voting rights of shareholders present, in person or by proxy, who, being entitled to vote, vote on the resolution. Special
resolutions require the affirmative vote of not less than 75% of the votes cast by shareholders present, in person or by proxy, at the
meeting. |
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Delaware law provides that, unless otherwise provided in the certificate of incorporation, each stockholder is entitled to one vote for each share of capital stock held by such stockholder. |
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Shareholder Vote on
Certain
Transactions |
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The Companies Act provides for schemes of arrangement, which
are arrangements or compromises between a company and any class of shareholders or creditors and used in certain types of reconstructions,
amalgamations, capital reorganizations or takeovers. These arrangements require:
· the
approval at a shareholders’ or creditors’ meeting convened by order of the court, of a majority in number of shareholders
or creditors representing 75% in value of the capital held by, or debt owed to, the class of shareholders or creditors, or class thereof
present and voting, either in person or by proxy; and
· the
approval of the court. |
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Generally, under Delaware law, unless the certificate of incorporation provides for
the vote of a larger portion of the stock, completion of a merger, consolidation, sale, lease or exchange of all or substantially all
of a corporation’s assets or dissolution requires:
· the
approval of the board of directors; and
· approval
by the vote of the holders of a majority of the outstanding stock or, if the certificate of incorporation provides for more or less than
one vote per share, a majority of the votes of the outstanding stock of a corporation entitled to vote on the matter. |
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England and Wales |
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Delaware |
Standard of Conduct
for Directors |
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Under English law, a director owes various statutory and fiduciary
duties to the company, including:
· to
act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members
as a whole;
· to
avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly conflicts, with the interests
of the company;
· to
act in accordance with the company’s constitution and only exercise his powers for the purposes for which they are conferred;
· to
exercise independent judgment;
· to
exercise reasonable care, skill and diligence;
· not
to accept benefits from a third party conferred by reason of his being a director or doing, or not doing, anything as a director; and
· to
declare any interest that he has, whether directly or indirectly, in a proposed or existing transaction or arrangement with the company. |
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Delaware law does not contain specific provisions setting forth
the standard of conduct of a director. The scope of the fiduciary duties of directors is generally determined by the courts of the State
of Delaware. In general, directors have a duty to act without self-interest, on a well-informed basis and in a manner they reasonably
believe to be in the best interest of the stockholders.
Directors of a Delaware corporation owe fiduciary duties of
care and loyalty to the corporation and to its shareholders. The duty of care generally requires that a director act in good faith, with
the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself
of all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director act
in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal
gain or advantage. In general, but subject to certain exceptions, actions of a director are presumed to have been made on an informed
basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption
may be rebutted by evidence of a breach of one of the fiduciary duties. Delaware courts have also imposed a heightened standard of conduct
upon directors of a Delaware corporation who take any action designed to defeat a threatened change in control of the corporation.
In addition, under Delaware law, when the board of directors
of a Delaware corporation approves the sale or break-up of a corporation, the board of directors may, in certain circumstances, have a
duty to obtain the highest value reasonably available to the shareholders. |
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| Stockholder Suits |
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Under English law, generally, the company, rather than its shareholders, is the proper claimant in an action in respect of a wrong done to the company or where there is an irregularity in the company’s internal management. Notwithstanding this general position, the Companies Act provides that (i) a court may allow a shareholder to bring a derivative claim (that is, an action in respect of and on behalf of the company) in respect of a cause of action arising from a director’s negligence, default, breach of duty or breach of trust and (ii) a shareholder may bring a claim for a court order where the company’s affairs have been or are being conducted in a manner that is unfairly prejudicial to some of its shareholders. |
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Under Delaware law, a stockholder may initiate a derivative
action to enforce a right of a corporation if the corporation fails to enforce the right itself. The complaint must:
· state
that the plaintiff was a stockholder at the time of the transaction of which the plaintiff complains or that the plaintiffs shares thereafter
devolved on the plaintiff by operation of law; and
· allege
with particularity the efforts made by the plaintiff to obtain the action the plaintiff desires from the directors and the reasons for
the plaintiff’s failure to obtain the action; or
· state
the reasons for not making the effort.
Additionally, the plaintiff must remain a stockholder through
the duration of the derivative suit. The action will not be dismissed or compromised without the approval of the Delaware Court of Chancery. |
DESCRIPTION OF AMERICAN DEPOSITARY SHARES
Our Depositary Shares are
deposited pursuant to the Second Amended and Restated Deposit Agreement dated December 18, 2023, among the Company, JPMorgan Chase Bank,
N.A., as depositary, ands holders and beneficial owners of American Depositary Receipts, or the Deposit Agreement. The depositary registers
and delivers the Depositary Shares. Each Depositary Share represents ownership of 400 Ordinary Shares that we will deposit with
the custodian, as agent of the depositary, under the Deposit Agreement.
The depositary's office is
located at 383 Madison Avenue, Floor 11, New York, NY 10179.
The Depositary Share-to-share
ratio is subject to amendment as provided in the form of American Depositary Receipt, or ADR, (which may give rise to fees contemplated
by the form of ADR). In the future, each Depositary Share will also represent any securities, cash or other property deposited with the
depositary but which they have not distributed directly to you.
A beneficial owner is any
person or entity having a beneficial ownership interest in Depositary Shares. A beneficial owner need not be the holder of the ADR evidencing
such Depositary Share. If a beneficial owner is not an ADR holder, it must rely on the holder of the ADR(s) evidencing such Depositary
Shares in order to assert any rights or receive any benefits under the Deposit Agreement. A beneficial owner shall only be able to exercise
any right or receive any benefit under the Deposit Agreement solely through the holder of the ADR(s) evidencing the Depositary Shares
owned by such beneficial owner. The arrangements between a beneficial owner and the holder of the corresponding ADRs may affect the beneficial
owner's ability to exercise any rights it may have.
An ADR holder shall be deemed
to have all requisite authority to act on behalf of any and all beneficial owners of the Depositary Shares evidenced by the ADRs registered
in such ADR holder's name for all purposes under the Deposit Agreement and ADRs. The depositary's only notification obligations under
the Deposit Agreement and the ADRs is to registered ADR holders. Notice to an ADR holder shall be deemed, for all purposes of the Deposit
Agreement and the ADRs, to constitute notice to any and all beneficial owners of the Depositary Shares evidenced by such ADR holder's
ADRs.
Unless certificated ADRs are
specifically requested, all Depositary Shares will be issued on the books of our depositary in book-entry form and periodic statements
will be mailed to you which reflect your ownership interest in such Depositary Shares. In our description, references to American depositary
receipts or ADRs shall include the statements you will receive that reflect your ownership of Depositary Shares.
You may hold Depositary Shares
either directly or indirectly through your broker or other financial institution. If you hold Depositary Shares directly, by having a
Depositary Share registered in your name on the books of the depositary, you are an ADR holder. This description assumes you hold your
Depositary Shares directly. If you hold the Depositary Shares through your broker or financial institution nominee, you must rely on the
procedures of such broker or financial institution to assert the rights of an ADR holder described in this section. You should consult
with your broker or financial institution to find out what those procedures are.
As an ADR holder or beneficial
owner, we will not treat you as a shareholder of ours and you will not have any shareholder rights. The laws of England and Wales govern
shareholder rights. Because the depositary or its nominee will be the shareholder of record for the Ordinary Share represented by all
outstanding Depositary Shares, shareholder rights rest with such record holder. Your rights are those of an ADR holder or of a beneficial
owner. Such rights derive from the terms of the Deposit Agreement to be entered into among us, the depositary and all holders and beneficial
owners from time to time of ADRs issued under the Deposit Agreement and, in the case of a beneficial owner, from the arrangements between
the beneficial owner and the holder of the corresponding ADRs. The obligations of our Company and the depositary and its agents are also
set out in the Deposit Agreement. Because the depositary or its nominee will actually be the registered owner of the Ordinary Shares,
you must rely on it to exercise the rights of a shareholder on your behalf.
The Deposit Agreement, the
ADRs and the Depositary Shares are governed by the internal laws of the State of New York without giving effect to the application of
the conflict of law principles thereof. Under the Deposit Agreement, as an ADR holder or a beneficial owner of Depositary Shares, you
agree that any legal suit, action or proceeding against or involving us or the depositary, arising out of or based upon the Deposit Agreement,
the Depositary Shares, the ADRs or the transactions contemplated thereby, may only be instituted in the United States District Court for
the Southern District of New York (or, in certain cases, the state courts of New York County, New York), and you irrevocably waive any
objection which you may have to the laying of venue of any such proceeding and irrevocably submit to the exclusive jurisdiction of such
courts in any such suit, action or proceeding.
The following is a summary
of what we believe to be the material terms of the Deposit Agreement. Notwithstanding this, because it is a summary, it may not contain
all the information that you may otherwise deem important. For more complete information, you should read the entire form of Deposit Agreement
and the form of ADR that contains the terms of your Depositary Shares. You can read a copy of the form of Deposit Agreement, which is
filed as an exhibit to this Registration Statement on Form F-1 (or amendment thereto) filed with the SEC of which this prospectus forms
a part. You may also obtain a copy of the Deposit Agreement at the SEC's Public Reference Room, which is currently located at 100 F Street,
NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-732-0330.
You may also find the registration statement and the attached Deposit Agreement on the SEC's website at http://www.sec.gov.
Distributions on Deposited Securities, Sales
How will I receive dividends and other distributions
on the Ordinary Shares underlying my Depositary Shares?
We may make various types
of distributions with respect to our securities. The depositary has agreed that, to the extent practicable, it will pay to you the cash
dividends or other distributions it or the custodian receives on Ordinary Shares or other deposited securities, after converting any cash
received into U.S. dollars (if it determines such conversion may be made on a reasonable basis) and, in all cases, making any necessary
deductions provided for in the Deposit Agreement. The depositary may utilize a division, branch or affiliate of JPMorgan Chase Bank, N.A.
to direct, manage and/or execute any public and/or private sale of securities and/or property under the Deposit Agreement. Such division,
branch and/or affiliate may charge the depositary a fee in connection with such sales, which fee is considered an expense of the depositary
chargeable to holders of Depositary Shares. All sales of securities will be handled by the depositary in accordance with its then current
policies. You will receive these distributions in proportion to the number of underlying securities that your Depositary Shares represent.
In all instances where the Deposit Agreement or an ADR refers to a “sale” (or words of similar import) of securities or property,
the depositary may, but shall not be obligated, to effect any such sale unless the securities to be sold are listed and publicly traded
on a securities exchange or there is a public market for the property to be sold. To the extent the securities are not so listed and publicly
traded or there is no public market for the property so distributed by us: (i) the depositary shall, in the event the Deposit Agreement
is terminated and the depositary holds deposited securities that are not listed and publicly traded after the termination date of the
Deposit Agreement, act in accordance with the termination provisions of the Deposit Agreement and form of ADR in respect of such securities
and property; and (ii) in the event the depositary or its custodian receives a distribution other than cash, our Ordinary Shares and/or
rights to acquire our Ordinary Shares, and such distribution consists of securities or property that are not distributed by the depositary
the depositary will be deemed to have sold the aggregate number of securities and/or property so received for nominal value and shall
have no obligation to distribute such securities or any proceeds from the deemed sale thereof to the ADR holders. Furthermore, in the
event the depositary endeavors to make a sale of Ordinary Shares, other securities or property, such securities and/or property may be
sold in a block sale or single lot transaction.
Except as stated below, the
depositary will deliver such distributions to ADR holders in proportion to their interests in the following manner:
| · | Cash. The depositary will distribute any U.S. dollars available to it resulting from a cash dividend
or other cash distribution or the net proceeds of sales of any other distribution or portion thereof (to the extent applicable), on an
averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such distribution being permissible
or practicable with respect to certain registered ADR holders, and (iii) deduction of the depositary's and/or its agents' fees and expenses
in (1) converting any foreign currency to U.S. dollars to the extent that it determines that such conversion may be made on a reasonable
basis, (2) transferring foreign currency or U.S. dollars to the United States by such means as the depositary may determine to the extent
that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority
required for such conversion or transfer, which is obtainable at a reasonable cost and within a reasonable time and (4) making any sale
by public or private means in any commercially reasonable manner. To the extent that any of the deposited securities is not or shall not
be entitled, by reason of its date of issuance, or otherwise, to receive the full amount of such cash dividend, distribution, or net proceeds
of sales, the depositary shall make appropriate adjustments in the amounts distributed to the ADR holders issued in respect of such deposited
securities. To the extent we or the depositary shall be required to withhold and do withhold from any cash dividend, distribution or net
proceeds from sales in respect of any deposited securities an amount on account of taxes, the amount distributed on the Depositary Shares
issued in respect of such deposited securities shall be reduced accordingly. |
To the extent the depositary determines
in its discretion that it would not be permitted by applicable law, rule or regulation, or it would not otherwise be practicable, to convert
foreign currency into U.S. dollars and distribute such U.S. dollars to some or all of the ADR holders entitled thereto, the depositary
may in its discretion distribute some or all of the foreign currency received by the depositary as it deems permissible and practicable
to, or retain and hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the
ADR holders entitled to receive the same. To the extent the depositary retains and holds any cash, foreign currency, securities or other
property as permitted under the Deposit Agreement, any and all fees, charges and expenses related to, or arising from, the holding thereof
shall be paid from such cash, foreign currency, securities or other property, or the net proceeds from the sale thereof, thereby reducing
the amount so held. If exchange rates fluctuate during a time when the depositary cannot convert a foreign currency, you may lose some
or all of the value of the distribution.
| · | Shares. In the case of a distribution in Ordinary Shares, the depositary will issue additional
ADRs to evidence the number of Depositary Shares representing such Ordinary Shares. Only whole Depositary Shares will be issued. Any Ordinary
Shares that would result in fractional Depositary Shares will be sold and the net proceeds of the public or private sales of such will
be distributed in the same manner as cash to the ADR holders entitled thereto. |
| · | Rights to receive additional Ordinary Shares. In the case of a distribution of rights to subscribe
for additional Ordinary Shares or other rights, if we timely provide evidence satisfactory to the depositary that it may lawfully distribute
such rights, the depositary will distribute warrants or other instruments in the discretion of the depositary representing such rights.
However, if we do not timely furnish such evidence, the depositary may: |
(i) sell
such rights if practicable and distribute the net proceeds of the public or private sales of such rights in the same manner as cash to
the ADR holders entitled thereto; or
(ii) if
it is not practicable to sell such rights by reason of the non-transferability of the rights, limited markets therefor, their short duration
or otherwise, do nothing and allow such rights to lapse, in which case ADR holders will receive nothing and the rights may lapse.
We have no obligation to file a registration
statement under the Securities Act in order to make any rights available to ADR holders.
| · | Other Distributions. In the case of a distribution of securities or property other than those described
above, the depositary may either (i) distribute such securities or property in any manner it deems equitable and practicable or (ii) to
the extent the depositary deems distribution of such securities or property not to be equitable and practicable, sell such securities
or property and distribute any net proceeds of public or private sales in the same way it distributes cash. |
| · | Elective Distributions. In the case of a dividend payable at the election of our shareholders in
cash or in additional Ordinary Shares, we will notify the depositary at least 30 days prior to the proposed distribution stating whether
or not we wish such elective distribution to be made available to ADR holders. The depositary shall make such elective distribution available
to ADR holders only if (i) we shall have timely requested that the elective distribution is available to ADR holders, (ii) the depositary
shall have determined that such distribution is reasonably practicable and (iii) the depositary shall have received satisfactory documentation
within the terms of the Deposit Agreement including any legal opinions of counsel that the depositary in its reasonable discretion may
request. If the above conditions are not satisfied, the depositary shall, to the extent permitted by law, distribute to the ADR holders,
on the basis of the same determination as is made in the local market in respect of the Ordinary Shares for which no election is made,
either (x) cash or (y) additional Depositary Shares representing such additional Ordinary Shares. If the above conditions are satisfied,
the depositary shall establish procedures to enable ADR holders to elect the receipt of the proposed dividend in cash or in additional
Depositary Shares. There can be no assurance that ADR holders or beneficial owners of Depositary Shares generally, or any ADR holder or
beneficial owner of Depositary Shares in particular, will be given the opportunity to receive elective distributions on the same terms
and conditions as the holders of Ordinary Shares. |
If the depositary determines
in its sole discretion that any distribution described above is not practicable with respect to any or all ADR holders, the depositary
may choose any method of distribution that it deems practicable for such ADR holder, including the distribution of some or all of any
cash, foreign currency, securities or other property (or appropriate documents evidencing the right to receive some or all of any such
cash, foreign currency, security or other property), and/or it may retain some or all of such items, without paying interest on or investing
them, on behalf of the ADR holder as deposited securities, in which case the Depositary Shares will also represent the retained items.
To the extent the depositary does not reasonably believe it will be permitted by applicable law, rule or regulation to convert foreign
currency into U.S. dollars and distribute such U.S. dollars to some or all of the ADR holders, the depositary may in its discretion distribute
the foreign currency received by the depositary to, or hold such foreign currency uninvested and without liability for interest thereon
for the respective accounts of, the ADR holders entitled to receive the same. To the extent the depositary holds such foreign currency,
any and all costs and expenses related to, or arising from, the holding of such foreign currency shall be paid from such foreign currency
thereby reducing the amount so held.
Any U.S. dollars will be paid
via wire transfer and/or distributed by checks drawn on a bank in the United States for whole dollars and cents. Fractional cents will
be withheld without liability and dealt with by the depositary in accordance with its then current practices.
The depositary is not responsible
if it fails to determine that any distribution or action is lawful or reasonably practicable.
There can be no assurance
that the depositary will be able to convert any currency at a specified exchange rate or sell any property, rights, shares or other securities
at a specified price, nor that any of such transactions can be completed within a specified time period. All purchases and sales of securities
will be handled by the depositary in accordance with its then current policies, which are currently set forth on the "Disclosures"
page (or successor page) of www.adr.com (as updated by the depositary from time to time, “ADR.com”).
Deposit, Withdrawal and Cancellation
How does the depositary issue Depositary
Shares?
The depositary will issue
Depositary Shares if you or your broker deposit Ordinary Shares or evidence of rights to receive Ordinary Shares with the custodian and
pay the fees and expenses owing to the depositary in connection with such issuance. In the case of the Depositary Shares to be issued
under this prospectus, we will arrange with the underwriters named herein to deposit such shares.
In connection with the deposit
of Ordinary Shares, the depositary or its custodian may require the following in a form satisfactory to it: (i) a written order directing
the depositary to issue to, or upon the written order of, the person or persons designated in such order Depositary Shares representing
such deposited Shares; (ii) proper endorsements or duly executed instruments of transfer in respect of such deposited Shares; (iii) instruments
assigning to the depositary, its custodian or a nominee of either any distribution on or in respect of such deposited shares or indemnity
therefor; and (iv) proxies entitling the custodian to vote such deposited shares. The deposited Ordinary Shares and any such additional
items are referred to as “deposited securities.” As soon as practicable after the custodian receives deposited securities
pursuant to any such deposit or pursuant to a distribution or change affecting deposited securities, the custodian shall present such
deposited securities for registration of transfer into the name of the depositary, its custodian or a nominee of either, in each case
for the benefit of ADR holders, to the extent such registration is practicable, at the cost and expense of the person making such deposit
(or for whose benefit such deposit is made) and shall obtain evidence satisfactory to it of such registration.
The custodian will hold all
deposited securities (including those being deposited by or on our behalf in connection with the offering to which this prospectus relates)
for the account and to the order of the depositary, in each case for the benefit of ADR holders, to the extent not prohibited by law.
ADR holders and beneficial owners thus have no direct ownership interest in the Ordinary Shares and only have such rights as are contained
in the Deposit Agreement. The custodian will also hold any additional securities, property and cash received on or in substitution for
the deposited securities.
Deposited securities are not
intended to, and shall not, constitute proprietary assets of the depositary, the custodian or their nominees. Beneficial ownership in
deposited securities is intended to be, and shall at all times during the term of the Deposit Agreement continue to be, vested in the
beneficial owners of the Depositary Shares representing such deposited securities. Notwithstanding anything else contained herein, in
the Deposit Agreement, in the form of ADR and/or in any outstanding Depositary Shares, the depositary, the custodian and their respective
nominees are intended to be, and shall at all times during the term of the Deposit Agreement be, the record holder(s) only of the deposited
securities represented by the Depositary Shares for the benefit of the ADR holders. The depositary, on its own behalf and on behalf of
the custodian and their respective nominees, disclaims any beneficial ownership interest in the deposited securities held on behalf of
the ADR holders.
Upon each deposit of Ordinary
Shares, receipt of related delivery documentation and compliance with the other provisions of the Deposit Agreement, including the payment
of the fees and charges of the depositary and any taxes or other fees or charges owing, the depositary will issue an ADR or ADRs in the
name or upon the order of the person entitled thereto evidencing the number of Depositary Shares to which such person is entitled. All
of the Depositary Shares issued will, unless specifically requested to the contrary, be part of the depositary's direct registration system,
and a registered holder will receive periodic statements from the depositary which will show the number of Depositary Shares registered
in such ADR holder's name. An ADR holder can request that the Depositary Shares not be held through the depositary's direct registration
system and that a certificated ADR be issued.
How do ADR holders cancel a Depositary Share
and obtain deposited securities?
When you turn in your ADR
certificate at the depositary's office, or when you provide proper instructions and documentation in the case of direct registration Depositary
Shares, subject to the provisions of or governing our Ordinary Shares (including, without limitation, our governing documents and all
applicable laws, rules and regulations), the depositary will, upon payment of certain applicable fees, charges and taxes, deliver the
underlying Ordinary Shares to you or upon your written order. Delivery of deposited securities in certificated form will be made at the
custodian's office (or from the custodian to the extent dematerialized). At your risk, expense and request, the depositary may deliver
deposited securities (including any certificates therefor) at such other place as you may request.
The depositary may only restrict
the withdrawal of deposited securities in connection with:
| · | temporary delays caused by closing our transfer books or those of the depositary or the deposit of Ordinary
Shares in connection with voting at a shareholders' meeting, or the payment of dividends; |
| · | the payment of fees, taxes and similar charges; or |
| · | compliance with any U.S. or foreign laws or governmental regulations relating to the ADRs or to the withdrawal
of deposited securities. |
This right of withdrawal may
not be limited by any other provision of the Deposit Agreement.
Record Dates
The depositary may, after
consultation with us if practicable, fix record dates (which, to the extent applicable, shall be as near as practicable to any corresponding
record dates set by us) for the determination of the registered ADR holders who will be entitled (or obligated, as the case may be):
| · | to receive any distribution on or in respect of deposited securities, |
| · | to give instructions for the exercise of voting rights, |
| · | to pay any fees assessed by, or owing to, the depositary for administration of the ADR program and for
any expenses as provided for in the ADR, or |
| · | to receive any notice or to act or be obligated in respect of other matters, |
all subject to
the provisions of the Deposit Agreement.
Voting Rights
How do I vote?
If you are an ADR holder and
the depositary asks you to provide it with voting instructions, you may instruct the depositary how to exercise the voting rights for
the Ordinary Shares which underlie your Depositary Shares. As soon as practicable after receipt from us of notice of any meeting at which
the holders of Ordinary Shares are entitled to vote, or of our solicitation of consents or proxies from holders of Ordinary Shares, the
depositary shall fix the Depositary Share record date in accordance with the provisions of the Deposit Agreement, provided that if the
depositary receives a written request from us in a timely manner and at least thirty (30) days prior to the date of such vote or meeting,
the depositary shall, at our expense, distribute to the registered ADR holders a “voting notice” stating (i) final information
particular to such vote and meeting and any solicitation materials, (ii) that each ADR holder on the record date set by the depositary
will, subject to any applicable provisions of the laws of England and Wales, be entitled to instruct the depositary as to the exercise
of the voting rights, if any, pertaining to the deposited securities represented by the Depositary Shares evidenced by such ADR holder's
ADRs and (iii) the manner in which such instructions may be given, including instructions for giving a discretionary proxy to a person
designated by us. Each ADR holder shall be solely responsible for the forwarding of voting notices to the beneficial owners of Depositary
Shares registered in such ADR holder's name. There is no guarantee that ADR holders and beneficial owners generally or any holder or beneficial
owner in particular will receive the notice described above with sufficient time to enable such ADR holder or beneficial owner to return
any voting instructions to the depositary in a timely manner.
Following actual receipt by
the ADR department responsible for proxies and voting of ADR holders' instructions (including, without limitation, instructions of any
entity or entities acting on behalf of the nominee for The Depositary Trust Company, or DTC), the depositary shall, in the manner and
on or before the time established by the depositary for such purpose, endeavor to vote or cause to be voted the deposited securities represented
by the Depositary Shares evidenced by such ADR holders' ADRs in accordance with such instructions insofar as practicable and permitted
under the provisions of or governing deposited securities.
ADR holders are strongly encouraged
to forward their voting instructions to the depositary as soon as possible. For instructions to be valid, the ADR department of the depositary
that is responsible for proxies and voting must receive them in the manner and on or before the time specified, notwithstanding that such
instructions may have been physically received by the depositary prior to such time. The depositary will not itself exercise any voting
discretion in respect of deposited securities. The depositary and its agents will not be responsible for any failure to carry out any
instructions to vote any of the deposited securities, for the manner in which any voting instructions are given, including instructions
to give a discretionary proxy to a person designated by us, for the manner in which any vote is cast, including, without limitation, any
vote cast by a person to whom the depositary is instructed to grant a discretionary proxy pursuant to the terms of the Deposit Agreement,
or for the effect of any such vote. Notwithstanding anything contained in the Deposit Agreement or any ADR, the depositary may, to the
extent not prohibited by any law, rule or regulation, or by the rules, regulations or requirements of any stock exchange on which the
Depositary Shares are listed, in lieu of distribution of the materials provided to the depositary in connection with any meeting of or
solicitation of consents or proxies from holders of deposited securities, distribute to the registered holders of ADRs a notice that provides
such ADR holders with or otherwise publicizes to such ADR holders instructions on how to retrieve such materials or receive such materials
upon request (i.e., by reference to a website containing the materials for retrieval or a contact for requesting copies of the
materials).
There is no guarantee that
you will receive voting materials in time to instruct the depositary to vote and it is possible that you, or persons who hold their Depositary
Shares through brokers, dealers or other third parties, will not have the opportunity to exercise a right to vote.
Reports and Other Communications
Will ADR holders be able to view our reports?
The Deposit Agreement, the
provisions of or governing deposited securities, and any written communications from us which are both received by the custodian or its
nominee as a holder of deposited securities and made generally available to the holders of deposited securities, are available for inspection
by ADR holders at the offices of the depositary in the United States, on the SEC's internet website or upon request to the depositary
(which request may be refused by the depositary at its discretion).
Additionally, if we make any
written communications generally available to holders of our Ordinary Shares, and we furnish copies thereof (or English translations or
summaries) to the depositary, it will distribute the same to registered ADR holders.
Fees and Expenses
What fees and expenses will I be responsible for paying?
The depositary may charge
each person to whom Depositary Shares are issued, including, without limitation, issuances against deposits of Ordinary Shares, issuances
in respect of share distributions, rights and other distributions, issuances pursuant to a stock dividend or stock split declared by us
or issuances pursuant to a merger, exchange of securities or any other transaction or event affecting the Depositary Shares or deposited
securities, and each person surrendering Depositary Shares for withdrawal of deposited securities or whose Depositary Shares are cancelled
or reduced for any other reason, a fee of up to $5.00 for each 100 Depositary Shares (or any portion thereof) issued, delivered, reduced,
cancelled or surrendered, or upon which a share distribution or elective distribution is made or offered, as the case may be. The depositary
may sell (by public or private sale) sufficient securities and property received in respect of a share distribution, rights and/or other
distribution prior to such deposit to pay such charge.
The
following additional fees, charges and expenses shall also be incurred by the ADR holders, the beneficial owners, by any party depositing
or withdrawing Ordinary Shares or by any party surrendering Depositary Shares and/or to whom Depositary Shares are issued (including,
without limitation, issuance pursuant to a stock dividend or stock split declared by us or an exchange of stock regarding the Depositary
Shares or the deposited securities or a distribution of Depositary Shares), whichever is applicable:
| · | a fee of up to U.S.$0.05 per Depositary Share held for any cash distribution made, or for any elective
cash/stock dividend offered, pursuant to the Deposit Agreement; |
| · | an aggregate fee of up to US$0.05 per Depositary Share per calendar year (or portion thereof) for services
performed by the depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall
be assessed against holders of ADRs as of the record date or record dates set by the depositary during each calendar year and shall be
payable in the manner described in the next succeeding provision); |
| · | an amount for the reimbursement of such fees, charges and expenses as are incurred by the depositary and/or
any of its agents (including, without limitation, the custodian, as well as charges and expenses incurred on behalf of ADR holders in
connection with compliance with foreign exchange control regulations or any law, rule or regulation relating to foreign investment) in
connection with the servicing of the Ordinary Shares or other deposited securities, the sale of securities (including, without limitation,
deposited securities), the delivery of deposited securities or otherwise in connection with the depositary's or its custodian's compliance
with applicable law, rule or regulation (which fees and charges shall be assessed on a proportionate basis against ADR holders as of the
record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such ADR holders or
by deducting such charge from one or more cash dividends or other cash distributions); |
| · | a fee of up to $0.05 per Depositary Share held for the direct or indirect distribution of securities (other
than Depositary Shares or rights to purchase additional Depositary Shares) or the net cash proceeds from the public or private sale of
such securities, regardless of whether any such distribution and/or sale is made by, for, or received from, or (in each case) on behalf
of, the depositary, us and/or any third party (which fee may be assessed against ADR holders as of a record date set by the depositary); |
| · | stock transfer or other taxes and other governmental charges; |
| · | a transaction fee per cancellation request (including any cancellation request made through SWIFT, facsimile
transmission or any other method of communication) as disclosed on the “Disclosures” page (or successor page) of www.adr.com
(as updated by the depositary from time to time, "ADR.com") and any applicable delivery expenses (which are payable by such
persons or ADR holders); |
| · | transfer or registration fees for the registration of transfer of deposited securities on any applicable
register in connection with the deposit or withdrawal of deposited securities; an |
| · | fees of any division, branch or affiliate of the depositary utilized by the depositary to direct, manage
and/or execute any public and/or private sale of securities under the Deposit Agreement. |
To facilitate the administration
of various depositary receipt transactions, including disbursement of dividends or other cash distributions and other corporate actions,
the depositary may engage the foreign exchange desk within the banking division of JPMorgan Chase Bank, N.A., or the Bank, and/or its
affiliates in order to enter into spot foreign exchange transactions to convert foreign currency into U.S. dollars. For certain currencies,
foreign exchange transactions are entered into with the Bank or an affiliate, as the case may be, acting in a principal capacity. For
other currencies, foreign exchange transactions are routed directly to and managed by an unaffiliated local custodian (or other third
party local liquidity provider), and neither the Bank nor any of its affiliates is a party to such foreign exchange transactions.
The foreign exchange rate
applied to a foreign exchange transaction will be either (a) a published benchmark rate, or (b) a rate determined by a third party local
liquidity provider, in each case plus or minus a spread, as applicable. The depositary will disclose which foreign exchange rate and spread,
if any, apply to such currency on the “Disclosures” page (or successor page) of ADR.com. Such applicable foreign exchange
rate and spread may (and neither the depositary, the Bank nor any of their affiliates is under any obligation to ensure that such rate
does not) differ from rates and spreads at which comparable transactions are entered into with other customers or the range of foreign
exchange rates and spreads at which the Bank or any of its affiliates enters into foreign exchange transactions in the relevant currency
pair on the date of the foreign exchange transaction. Additionally, the timing of execution of a foreign exchange transaction varies according
to local market dynamics, which may include regulatory requirements, market hours and liquidity in the foreign exchange market or other
factors. Furthermore, the Bank and its affiliates may manage the associated risks of their position in the market in a manner they deem
appropriate without regard to the impact of such activities on the depositary, us, ADR holders or beneficial owners. The spread applied
does not reflect any gains or losses that may be earned or incurred by the Bank and its affiliates as a result of risk management or other
hedging related activity.
Notwithstanding the foregoing,
to the extent we provide U.S. dollars to the depositary, neither the Bank nor any of its affiliates will execute a foreign exchange transaction
as set forth herein. In such case, the depositary will distribute the U.S. dollars received from us.
Further details relating
to the applicable foreign exchange rate, the applicable spread and the execution of foreign exchange transactions will be provided by
the depositary on ADR.com. Each holder and beneficial owner by holding or owning an ADR or Depositary Share or an interest therein, and
we, each acknowledge and agree that the terms applicable to foreign exchange transactions disclosed from time to time on ADR.com will
apply to any foreign exchange transaction executed pursuant to the Deposit Agreement.
We will pay all other fees,
charges and expenses of the depositary and any agent of the depositary (except the custodian) pursuant to agreements from time to time
between us and the depositary.
The right of the depositary
to charge and receive payment of fees, charges and expenses survives the termination of the Deposit Agreement, and shall extend for those
fees, charges and expenses incurred prior to the effectiveness of any resignation or removal of the depositary.
The fees and charges described
above may be amended from time to time by agreement between us and the depositary.
The depositary anticipates
reimbursing us for certain expenses incurred by us that are related to the establishment and maintenance of the ADR program upon such
terms and conditions as we and the depositary may agree from time to time. The depositary may make available to us a set amount or a portion
of the depositary fees charged in respect of the ADR program or otherwise upon such terms and conditions as we and the depositary may
agree from time to time. The depositary may also agree to reduce or waive certain fees that would normally be charged on Depositary Shares
issued to or at the direction of, or otherwise held by, us and/or certain holders and beneficial owners and holders and beneficial owners
of Ordinary Shares of ours. The depositary collects its fees for issuance and cancellation of Depositary Shares directly from investors
depositing Ordinary Shares or surrendering Depositary Shares for the purpose of withdrawal or from intermediaries acting for them. The
depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion
of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions,
or by directly billing investors, or by charging the book-entry system accounts of participants acting for them. The depositary will generally
set off the amounts owing from distributions made to holders of Depositary Shares. If, however, no distribution exists and payment owing
is not timely received by the depositary, the depositary may refuse to provide any further services to ADR holders that have not paid
those fees and expenses owing until such fees and expenses have been paid. At the discretion of the depositary, all fees and charges owing
under the Deposit Agreement are due in advance and/or when declared owing by the depositary.
Payment of Taxes
ADR holders and/or beneficial
owners must pay any tax or other governmental charge payable by the custodian or the depositary on any Depositary Share or ADR, deposited
security or distribution. If any taxes or other governmental charges (including any penalties and/or interest) shall become payable by
or on behalf of the custodian or the depositary with respect to any ADR, any deposited securities represented by the Depositary Shares
evidenced thereby or any distribution thereon such tax or other governmental charge shall be paid by the ADR holder thereof to the depositary
and by holding or owning, or having held or owned, an ADR or any Depositary Shares evidenced thereby, the ADR holder and all beneficial
owners thereof, and all prior ADR holders and beneficial owners thereof, jointly and severally, agree to indemnify, defend and save harmless
each of the depositary and its agents in respect of such tax or other governmental charge. Notwithstanding the depositary’s right
to seek payment from current or former ADR holders and beneficial owners, each ADR holder and beneficial owner, and each prior ADR holder
and beneficial owner, by holding or owning, or having held or owned, an ADR or an interest in Depositary Shares acknowledges and agrees
that the depositary has no obligation to seek payment of amounts owing from any current or prior beneficial owner. If an ADR holder owes
any tax or other governmental charge, the depositary may (i) deduct the amount thereof from any cash distributions, or (ii) sell deposited
securities (by public or private sale) and deduct the amount owing from the net proceeds of such sale. In either case, the ADR holder
remains liable for any shortfall. If any tax or governmental charge is unpaid, the depositary may also refuse to effect any registration,
registration of transfer, split-up or combination of ADRs or withdrawal of deposited securities until such payment is made. If any tax
or governmental charge is required to be withheld on any cash distribution, the depositary may deduct the amount required to be withheld
from any cash distribution or, in the case of a non-cash distribution, sell the distributed property or securities (by public or private
sale) in such amounts and in such manner as the depositary deems necessary and practicable to pay such taxes and distribute any remaining
net proceeds or the balance of any such property after deduction of such taxes to the ADR holders entitled thereto. Neither we nor the
depositary nor any of our or its respective agents, shall be liable to ADR holders or beneficial owners of the Depositary Shares for failure
of any of them to comply with applicable tax laws, rules and/or regulations.
As an ADR holder or beneficial
owner, you will be agreeing to indemnify us, the depositary, its custodian and any of our or their respective officers, directors, employees,
agents and affiliates against, and hold each of them harmless from, any claims by any governmental authority with respect to taxes, additions
to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained,
which obligations shall survive any transfer or surrender of Depositary Shares or the termination of the Deposit Agreement.
Reclassifications, Recapitalizations and Mergers
If we take certain actions
that affect the deposited securities, including (i) any change in par value, split-up, consolidation, cancellation or other reclassification
of deposited securities or (ii) any distributions of Ordinary Shares or other property not made to holders of ADRs or (iii) any recapitalization,
reorganization, merger, consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all of our assets, then the
depositary may choose to, and shall if reasonably requested by us:
| · | distribute additional or amended ADRs; |
| · | distribute cash, securities or other property it has received in connection with such actions; |
| · | sell by public or private sale any securities or property received and distribute the proceeds as cash;
or |
If the depositary does not choose any of the above
options, any of the cash, securities or other property it receives will constitute part of the deposited securities and each Depositary
Share will then represent a proportionate interest in such property.
Amendment and Termination
How may the Deposit Agreement be amended?
We
may agree with the depositary to amend the Deposit Agreement and the Depositary Shares without your consent for any reason. ADR holders
must be given at least thirty (30) days' notice of any amendment that imposes or increases any fees on a per Depositary Share basis, charges
or expenses (other than stock transfer or other taxes and other governmental charges, transfer or registration fees, a transaction fee
per cancellation request (including any cancellation request made through SWIFT, facsimile transmission or any other method of communication),
applicable delivery expenses or other such fees, charges or expenses), or otherwise prejudices any substantial existing right of ADR holders
or beneficial owners. Such notice need not describe in detail the specific amendments effectuated thereby, but must identify to ADR holders
and beneficial owners a means to access the text of such amendment. If an ADR holder or beneficial owner continues to hold an ADR or ADRs,
or an interest therein, after being so notified, such ADR holder and any beneficial owner are deemed to agree to such amendment and to
be bound by the Deposit Agreement as so amended. No amendment, however, will impair your right to surrender your Depositary Shares and
receive the underlying securities, except in order to comply with mandatory provisions of applicable law.
Any
amendments or supplements that (i) are reasonably necessary (as agreed by us and the depositary) in order for (a) the Depositary Shares
to be registered on Form F-6 under the Securities Act or (b) the Depositary Shares or Ordinary Shares to be traded solely in electronic
book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by ADR holders, shall be deemed
not to prejudice any substantial rights of ADR holders or beneficial owners. Notwithstanding the foregoing, if any governmental body or
regulatory body should adopt new laws, rules or regulations that would require amendment or supplement of the Deposit Agreement or the
form of ADR to ensure compliance therewith, we and the depositary may amend or supplement the Deposit Agreement and the form of ADR (and
all outstanding ADRs) at any time in accordance with such changed laws, rules or regulations. Such amendment or supplement to the Deposit
Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to ADR holders or within
any other period of time as required for compliance.
Notice of any amendment to
the Deposit Agreement or form of ADRs shall not need to describe in detail the specific amendments effectuated thereby, and failure to
describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case,
the notice given to the ADR holders identifies a means for ADR holders and beneficial owners to retrieve or receive the text of such amendment
(i.e., upon retrieval from the SEC's, the depositary's or our website or upon request from the depositary).
How may the Deposit Agreement be terminated?
The
depositary may at any time, and shall at our written direction, terminate the Deposit Agreement and the ADRs by mailing notice of such
termination to the registered holders of ADRs at least thirty (30) days prior to the date fixed in such notice for such termination; provided,
however, if the depositary shall have (i) resigned as depositary under the Deposit Agreement, notice of such termination by the depositary
shall not be provided to registered ADR holders unless a successor depositary shall not be operating under the Deposit Agreement within
sixty (60) days of the date of such resignation, and (ii) been removed as depositary under the Deposit Agreement, notice of such termination
by the depositary shall not be provided to registered holders of ADRs unless a successor depositary shall not be operating under the Deposit
Agreement on the 60th day after our notice of removal was first provided to the depositary. Notwithstanding anything to the contrary in
the Deposit Agreement, the depositary may terminate the Deposit Agreement (a) without notifying us, but subject to giving thirty (30)
days' notice to the ADR holders, under the following circumstances: (i) in the event of our bankruptcy, liquidation proceedings or insolvency,
(ii) if our Depositary Shares are delisted from a “national securities exchange” (that has registered with the Commission
under Section 6 of the Securities Exchange Act of 1934, as amended), (iii) if we effect (or will effect) a redemption of all or substantially
all of the deposited securities, or a cash or share distribution representing a return of all or substantially all of the value of the
deposited securities, (iv) there are no deposited securities with respect to Depositary Shares remaining, including if the deposited securities
are cancelled, or the deposit securities have been deemed to have no value, or (v) there occurs a merger, consolidation, sale of assets
or other transaction as a result of which securities or other property are delivered in exchange for or in lieu of deposited securities,
and (b) immediately without prior notice to the Company, any ADR holder or beneficial owner or any other person if (i) required by any
law, rule or regulation relating to sanctions by any governmental authority or body, (ii) the depositary would be subject to liability
under or pursuant to any law, rule or regulation, or (iii) required by any governmental authority or body, in each case under (b) as determined
by the depositary in its reasonable discretion.
If our Ordinary Shares are
not listed and publicly traded on a stock exchange or in a securities market as of the date so fixed for termination or if, for any reason,
the depositary does not sell the deposited securities, then after such date fixed for termination, the depositary shall use its reasonable
efforts to ensure that the Depositary Shares cease to be eligible for settlement within DTC and that neither DTC nor any of its nominees
shall thereafter be an ADR holder. At such time as the Depositary Shares cease to be DTC eligible and/or neither DTC nor any of its nominees
is an ADR holder, to the extent we are not, to the depositary’s knowledge, insolvent or in bankruptcy or liquidation, the depositary
shall (A) cancel all outstanding ADRs; (B) request DTC to provide the depositary with information on those holding Depositary Shares through
DTC and, upon receipt thereof, revise the ADR register to reflect the information provided by DTC; (C) instruct its custodian to deliver
all deposited securities to us, a subsidiary or affiliate of ours (the company representative) or an independent trust company engaged
by us (the trustee) to hold those deposited securities in trust for the beneficial owners of the ADRs if we are not permitted to hold
any of the deposited securities under applicable law and/or we have directed the depositary to deliver such deposited securities to the
company representative or trustee along with a stock transfer form and/or such other instruments of transfer covering such deposited securities
as are needed under applicable law, in either case referring to the names set forth on the ADR register and (D) provide us with a copy
of the ADR register.
Upon receipt of any instrument
of transfer covering such deposited securities and the ADR Register, we have agreed that we will, depending on what is legally required
under local law, either deliver to each person reflected on such ADR register appropriate documentation to effect the transfer to such
persons of the deposited securities previously represented by the Depositary Shares evidenced by their ADRs, approve the transfer of the
deposited securities previously represented by their ADRs to the persons listed on the ADR register (as applicable), procure the relevant
updates to the register of members of the Company to reflect the transfer of the deposited securities previously represented by their
ADRs to the persons listed on the ADR register (as applicable) and provide the depositary with a certified copy of the updated register
of our shareholders.
To the extent the depositary
reasonably believes that we are insolvent, or if we are in receivership, have filed for bankruptcy and/or are otherwise in restructuring,
administration or liquidation, and in any such case the deposited securities are not listed and publicly traded on a securities exchange
after the termination date, or if, for any reason, the depositary believes it is not able to or cannot practicably sell the deposited
securities promptly and without undue effort, the deposited securities shall be deemed to have no value (and such holder shall be deemed
to have instructed the depositary that the deposited securities have no value). The depositary may (and, by holding an ADR or an interest
therein, all holders irrevocably consent and agree that the depositary may) instruct its custodian to deliver all deposited securities
to us (acting, as applicable by an administrator, receiver, administrative receiver, liquidator, provisional liquidator, restructuring
officer, interim restructuring officer, trustee, controller or other entity overseeing the bankruptcy, insolvency, administration, restructuring
or liquidation process) and notify us that the deposited securities are surrendered for no consideration. The Deposit Agreement requires
us, subject to applicable law, to promptly accept the surrender of the deposited securities for no consideration and deliver to the depositary
a written notice confirming (A) the acceptance of the surrender of the deposited securities for no consideration and (B) the cancellation
of such deposited securities. Promptly after notifying us that the deposited securities are surrendered for no consideration and irrespective
of whether we haves complied with the immediately preceding sentence, the depositary shall notify ADR holders that their Depositary Shares
have been cancelled with no consideration being payable to such ADR holders.
Upon the depositary's compliance
with the provisions of any of the above three paragraphs, the depositary and its agents shall be discharged from all, and cease to have
any, obligations under the Deposit Agreement and the ADRs.
If our Ordinary Shares are
listed and publicly traded on a securities exchange and the depositary believes that it is able, permissible and practicable to sell the
deposited securities without undue effort, then the depositary may endeavor to publicly or privately sell (as long as it may lawfully
do so) the deposited securities, which sale may be effected in a block sale/single lot transaction and, after the settlement of such sale(s),
to the extent legally permissible and practicable, distribute or hold in an account (which may be a segregated or unsegregated account)
the net proceeds of such sale(s), less any amounts owing to the depositary (including, without limitation, cancellation fees), together
with any other cash then held by it under the Deposit Agreement, in trust, without liability for interest, for the pro rata benefit of
the holders entitled thereto. After making such sale, the depositary shall be discharged from all obligations in respect of the Deposit
Agreement and the ADRs, except to account for such net proceeds and other cash.
Limitations on Obligations and Liability
Limits on our obligations and the obligations
of the depositary; limits on liability to ADR holders, beneficial owners and others
Prior to the issue, registration,
registration of transfer, split-up, combination, or cancellation of any ADRs, or the delivery of any distribution in respect thereof,
and from time to time in the case of the production of proofs as described below, we or the depositary or its custodian may require:
| · | payment with respect thereto of (i) any stock transfer or other tax or other governmental charge, (ii)
any stock transfer or registration fees in effect for the registration of transfers of Ordinary Shares or other deposited securities upon
any applicable register and (iii) any applicable fees and expenses described in the Deposit Agreement; |
| · | the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of any
signature and (ii) such other information, including without limitation, information as to citizenship, residence, exchange control approval,
beneficial or other ownership of, or interest in, any securities, compliance with applicable law, regulations, provisions of or governing
deposited securities and terms of the Deposit Agreement and the ADRs, as it may deem necessary or proper; and |
| · | compliance with such regulations as the depositary may establish consistent with the Deposit Agreement
or as the depositary believes are required, necessary or advisable in order to comply with applicable laws, rules and regulations. |
The issuance of ADRs, the
acceptance of deposits of Ordinary Shares, the registration, registration of transfer, split-up or combination of ADRs or the withdrawal
of Ordinary Shares, may be suspended, generally or in particular instances, when the ADR register or any register for deposited securities
is closed or when any such action is deemed required, necessary or advisable by the depositary for any reason provided that the ability
to withdraw Ordinary Shares may only be limited under the following circumstances: (i) temporary delays caused by closing transfer
books of the depositary or our transfer books or the deposit of Ordinary Shares in connection with voting at a shareholders' meeting,
or the payment of dividends, (ii) the payment of fees, taxes, and similar charges, and (iii) compliance with any laws or governmental
regulations relating to ADRs or to the withdrawal of deposited securities. The depositary may close the ADR register (and/or any portion
thereof) at any time or from time to time when deemed expedient by it.
The Deposit Agreement expressly
limits the obligations and liability of the depositary, the depositary’s custodian or ourselves and each of our and their respective
directors, officers, employees, agents and affiliates, provided, however, that no provision of the Deposit Agreement is intended to constitute
a waiver or limitation of any rights that ADR holders or beneficial owners may have under the Securities Act or the Securities Exchange
Act of 1934, to the extent applicable. The Deposit Agreement provides that each of us, the depositary and our respective directors, officers,
employees, agents and affiliates will:
| · | incur or assume no liability (including, without limitation, to ADR holders or beneficial owners) if any
present or future law, rule, regulation, fiat, order or decree of the United States, England, Wales or any other country or jurisdiction,
or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or
governing any Deposited Securities, any present or future provision of the Company's charter, any act of God, war, terrorism, epidemic,
pandemic, nationalization, expropriation, currency restrictions, extraordinary market conditions, work stoppage, strike, civil unrest,
revolutions, rebellions, explosions, cyber, ransomware or malware attack, computer failure or circumstance our, the depositary's or our
respective directors’, officers’, employees’, agents' or affiliates’ direct and immediate control shall prevent
or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement
or the ADRs provide shall be done or performed by any such party (including, without limitation, voting); |
| · | incur or assume no liability (including, without limitation, to ADR holders or beneficial owners) by reason
of any non-performance or delay, caused as aforesaid, in the performance of any act or things which by the terms of the Deposit
Agreement it is provided shall or may be done or performed or any exercise or failure to exercise discretion under the Deposit Agreement
or the ADRs including, without limitation, any failure to determine that any distribution or action may be lawful or reasonably practicable; |
| · | incur or assume no liability (including, without limitation, to holders or beneficial owners) if it performs
its obligations specifically set forth in the Deposit Agreement and ADRs without gross negligence or willful misconduct; |
| · | in the case of the depositary and its agents, be under no obligation to appear in, prosecute or defend
any action, suit or other proceeding in respect of any deposited securities the Depositary Shares or the ADRs; |
| · | in the case of us and our agents, be under no obligation to appear in, prosecute or defend any action,
suit or other proceeding in respect of any deposited securities the Depositary Shares or the ADRs, which in our or our agents’ opinion,
as the case may be, may involve us in expense or liability, unless indemnity satisfactory to us or our agent, as the case may be against
all expense (including fees and disbursements of counsel) and liability is furnished as often as may be requested; |
| · | not be liable (including, without limitation, to ADR holders or beneficial owners) for any action or inaction
by it in reliance upon the advice of or information from any legal counsel, any accountant, any person presenting Ordinary Shares for
deposit, any registered holder of ADRs, or any other person believed by it to be competent to give such advice or information and/or,
in the case of the depositary, from us; or |
| · | may rely and shall be protected in acting upon any written notice, request, direction, instruction or
document believed by it to be genuine and to have been signed, presented or given by the proper party or parties. |
The depositary shall not be
a fiduciary or have any fiduciary duty to ADR holders or beneficial owners.
The depositary and its agents
may fully respond to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement,
any registered holder or holders of ADRs, any ADRs or otherwise related to the Deposit Agreement or ADRs to the extent such information
is requested or required by or pursuant to any lawful authority, including without limitation laws, rules, regulations, administrative
or judicial process, banking, securities or other regulators. The depositary shall not be liable for the acts or omissions made by, or
the insolvency of, any securities depository, clearing agency or settlement system. Furthermore, the depositary shall not be responsible
for, and shall incur no liability in connection with or arising from, the insolvency of any custodian that is not a branch or affiliate
of JP Morgan. Notwithstanding anything to the contrary contained in the Deposit Agreement or any ADRs, the depositary shall not be responsible
for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the custodian except to
the extent that any registered ADR holder has incurred liability directly as a result of the custodian having (i) committed fraud or willful
misconduct in the provision of custodial services to the depositary or (ii) failed to use reasonable care in the provision of custodial
services to the depositary as determined in accordance with the standards prevailing in the jurisdiction in which the custodian is located.
The depositary and the custodian(s) may use third party delivery services and providers of information regarding matters such as, but
not limited to, pricing, proxy voting, corporate actions, class action litigation and other services in connection with the ADRs and the
Deposit Agreement, and use local agents to provide services such as, but not limited to, attendance at any meetings of security holders
of issuers. Although the depositary and the custodian will use reasonable care (and cause their agents to use reasonable care) in the
selection and retention of such third-party providers and local agents, they will not be responsible for any errors or omissions made
by them in providing the relevant information or services.
The
depositary has no obligation to inform ADR holders or beneficial owners about the requirements of the laws, rules or regulations or any
changes therein or thereto of England, Wales, the United States or any other country or jurisdiction or of any governmental or regulatory
authority or any securities exchange or market or automated quotation system.
Additionally,
none of the depositary, the custodian or us, or any of their or our respective directors, officers, employees, agents or affiliates shall
be liable for the failure by any registered holder of ADRs or beneficial owner to obtain the benefits of credits or refunds of non-U.S.
tax paid against such ADR holder's or beneficial owner's income tax liability. The depositary is under no obligation to provide the ADR
holders and beneficial owners, or any of them, with any information about our tax status. None of us, the depositary, the custodian or
any of our or their respective directors, officers, employees, agents or affiliates shall incur any liability for any tax or tax consequences
that may be incurred by registered ADR holders or beneficial owners on account of their ownership or disposition of ADRs or Depositary
Shares.
Neither the depositary nor
its agents will be responsible for any failure to carry out any instructions to vote any of the deposited securities, for the manner in
which any voting instructions are given, including instructions to give a discretionary proxy to a person designated by us, for the manner
in which any vote is cast, including, without limitation, any vote cast by a person to whom the depositary is instructed to grant a discretionary
proxy pursuant to the terms of the Deposit Agreement, or for the effect of any such vote. The depositary shall endeavor to effect any
sale of securities or other property and any conversion of currency, securities or other property, in each case as is referred to or contemplated
in the Deposit Agreement or the form of ADR, in accordance with the depositary's normal practices and procedures under the circumstances
applicable to such sale or conversion, but shall have no liability (in the absence of its own willful default or gross negligence or that
of its agents, officers, directors or employees) with respect to the terms of any such sale or conversion, including the price at which
such sale or conversion is effected, or if such sale or conversion shall not be practicable, or shall not be believed, deemed or determined
to be practicable by the depositary. Specifically, the depositary shall not have any liability for the price received in connection with
any public or private sale of securities (including, without limitation, for any sale made at a nominal price), the timing thereof or
any delay in action or omission to act nor shall it be responsible for any error or delay in action, omission to act, default or negligence
on the part of the party so retained in connection with any such sale or proposed sale. The depositary shall not incur any liability in
connection with or arising from any failure, inability or refusal by us or any other party, including any share registrar, transfer agent
or other agent appointed by us, the depositary or any other party, to process any transfer, delivery or distribution of cash, shares,
other securities or other property, including without limitation upon the termination of the Deposit Agreement, or otherwise to comply
with any provisions of the Deposit Agreement that are applicable to it. The depositary may rely upon instructions from us or our counsel
in respect of any approval or license required for any currency conversion, transfer or distribution. The depositary shall not incur any
liability for the content of any information submitted to it by us or on our behalf for distribution to ADR holders or for any inaccuracy
of any translation thereof, for any investment risk associated with acquiring an interest in the deposited securities, for the validity
or worth of the deposited securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of
the Deposit Agreement or for the failure or timeliness of any notice from us. The depositary shall not be liable for any acts or omissions
made by a successor depositary whether in connection with a previous act or omission of the depositary or in connection with any matter
arising wholly after the removal or resignation of the depositary.
We have agreed to indemnify
the depositary under certain circumstances and the depositary has agreed to indemnify us under certain circumstances.
Notwithstanding any other
provision of the Deposit Agreement or the ADRs to the contrary, neither we nor the depositary, nor any of their respective agents shall
be liable to the other for any indirect, special, punitive or consequential damages or lost profits, in each case of any form incurred
by any of them or any other person or entity (including, without limitation, holders and beneficial owners), whether or not foreseeable
and regardless of the type of action in which such a claim may be brought, collectively Special Damages, except (i) to the extent
such Special Damages arise from the gross negligence or willful misconduct of the party from whom indemnification is sought or (ii) to
the extent Special Damages arise from or out of a claim brought by a third party (including, without limitation, holders and beneficial
owners) against the depositary or its agents acting under the Deposit Agreement, except to the extent such Special Damages arise out of
the gross negligence or willful misconduct of the party seeking indemnification hereunder.
In the Deposit Agreement each
party thereto (including, for avoidance of doubt, each ADR holder and beneficial owner) irrevocably waives, to the fullest extent permitted
by applicable law, any right it may have to a trial by jury in any suit, action or proceeding against the depositary and/or us directly
or indirectly arising out of or relating to the Ordinary Shares or other deposited securities, the Depositary Shares or the ADRs, the
Deposit Agreement or any transaction contemplated therein, or the breach thereof (whether based on contract, tort, common law or any other
theory).
No provision of the Deposit
Agreement or the ADRs is intended to constitute a waiver or limitation of any rights which an ADR holder or any beneficial owner may have
under the Securities Act or the Securities Exchange Act of 1934, as amended, to the extent applicable.
The depositary and its agents
may own and deal in any class of securities of our Company and our affiliates and in Depositary Shares.
Disclosure of Interest in Depositary Shares
To the extent that the provisions
of or governing any deposited securities may require disclosure of or impose limits on beneficial or other ownership of, or interest in,
deposited securities, other Ordinary Shares and other securities and may provide for blocking transfer, voting or other rights to enforce
such disclosure or limits, you as ADR holders or beneficial owners agree to comply with all such disclosure requirements and ownership
limitations and to comply with any reasonable instructions we may provide in respect thereof. We reserve the right to instruct ADR holders
(and through any such ADR holder, the beneficial owners of Depositary Shares evidenced by the ADRs registered in such ADR holder’s
name) to deliver their Depositary Shares for cancellation and withdrawal of the deposited securities so as to permit us to deal directly
with the ADR holder and/or beneficial owner of Depositary Shares as a holder of shares and, by holding a Depositary Share or an interest
therein, ADR holders and beneficial owners of Depositary Shares will be agreeing to comply with such instructions.
Each ADR holder agrees to
provide such information as the Company may request in a disclosure notice, or a Disclosure Notice, given pursuant to the Companies Act
or the Articles of Association of the Company. Each ADR holder acknowledges that it understands that failure to comply with a Disclosure
Notice may result in the imposition of sanctions against the holder of the underlying Ordinary Shares in respect of which the non-complying
person is or was, or appears to be or has been, interested as provided in the Companies Act and the Articles of Association which currently
may include, subject to the granting of an appropriate order by the court, the withdrawal of the voting rights of such Ordinary Shares
and the imposition of restrictions on the rights to receive dividends on and to transfer such Ordinary Shares. In addition, each ADR holder
agrees to comply with the provisions of the Disclosure Guidance and Transparency Rules published by the United Kingdom Financial Conduct
Authority (as amended from time to time) with regard to the notification to the Company of interests in Ordinary Shares underlying Depositary
Shares and certain financial instruments, which currently provide, inter alia, that an ADR holder must notify the Company
of the percentage of its voting rights he holds as a shareholder or holds or is deemed to hold through his direct or indirect holding
of certain financial instruments (or a combination of such holdings) if the percentage of those voting rights reaches, exceeds or falls
below specified thresholds.
Books of Depositary
The depositary or its agent
will maintain a register for the registration, registration of transfer, combination and split-up of ADRs, which register shall include
the depositary's direct registration system. Registered holders of ADRs may inspect such records at the depositary's office at all reasonable
times, but solely for the purpose of communicating with other ADR holders in the interest of the business of our Company or a matter relating
to the Deposit Agreement. Such register (and/or any portion thereof) may be closed at any time or from time to time, when deemed expedient
by the depositary.
The depositary will maintain
facilities for the delivery and receipt of ADRs.
Appointment
In the Deposit Agreement,
each registered holder of ADRs and each beneficial owner, upon acceptance of any Depositary Shares or ADRs (or any interest in any of
them) issued in accordance with the terms and conditions of the Deposit Agreement will be deemed for all purposes to:
| · | be a party to and bound by the terms of the Deposit Agreement and the applicable ADR or ADRs, |
| · | appoint the depositary its attorney-in-fact, with full power to delegate, to act on its behalf and to
take any and all actions contemplated in the Deposit Agreement and the applicable ADR or ADRs, to adopt any and all procedures necessary
to comply with applicable laws and to take such action as the depositary in its sole discretion may deem necessary or appropriate to carry
out the purposes of the Deposit Agreement and the applicable ADR and ADRs, the taking of such actions to be the conclusive determinant
of the necessity and appropriateness thereof; and |
| · | acknowledge and agree that (i) nothing in the Deposit Agreement or any ADR shall give rise to a partnership
or joint venture among the parties thereto, nor establish a fiduciary or similar relationship among such parties, (ii) the depositary,
its divisions, branches and affiliates, and their respective agents, may from time to time be in the possession of non-public information
about us, ADR holders, beneficial owners and/or their respective affiliates, (iii) the depositary and its divisions, branches and affiliates
may at any time have multiple banking relationships with us, ADR holders, beneficial owners and/or the affiliates of any of them, (iv)
the depositary and its divisions, branches and affiliates may, from time to time, be engaged in transactions in which parties adverse
to us, ADR holders, or beneficial owners may have interests, (v) nothing contained in the Deposit Agreement or any ADR(s) shall (A) preclude
the depositary or any of its divisions, branches or affiliates from engaging in any such transactions or establishing or maintaining any
such relationships, or (B) obligate the depositary or any of its divisions, branches or affiliates to disclose any such transactions or
relationships or to account for any profit made or payment received in any such transactions or relationships, (vi) the depositary shall
not be deemed to have knowledge of any information held by any branch, division or affiliate of the depositary and (vii) notice to an
ADR holder shall be deemed, for all purposes of the Deposit Agreement and the ADRs, to constitute notice to any and all beneficial owners
of the Depositary Shares evidenced by such ADR holder's ADRs. For all purposes under the Deposit Agreement and the ADRs, the ADR holders
thereof shall be deemed to have all requisite authority to act on behalf of any and all beneficial owners of the Depositary Shares evidenced
by such ADRs. |
Consent to Jurisdiction
In the Deposit Agreement,
we have submitted to the non-exclusive jurisdiction of the state and federal courts in New York, New York and appointed an agent for service
of process on our behalf. Any action based on the Deposit Agreement, the Depositary Shares, the ADRs or the transactions contemplated
therein or thereby may also be instituted by the depositary against us in any competent court in England and/or Wales, the United States
and/or any other court of competent jurisdiction.
Under the Deposit Agreement,
by holding or owning an ADR or Depositary Share or an interest therein, holders and beneficial owners each irrevocably agree that (i)
any legal suit, action or proceeding against or involving holders or beneficial owners brought by us or the depositary, arising out of
or based upon the Deposit Agreement, the Depositary Shares, the ADRs or the transactions contemplated therein or thereby, may be instituted
in a state or federal court in New York, New York, and by holding or owning an ADR or Depositary Share or an interest therein each irrevocably
waives any objection that it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive
jurisdiction of such courts in any such suit, action or proceeding and (ii) any legal suit, action or proceeding against or involving
us and/or the depositary brought by holders or beneficial owners, arising out of or based upon the Deposit Agreement, the Depositary Shares,
the ADRs or the transactions contemplated therein or thereby, including, without limitation, claims under the Securities Act may be instituted
only in the United States District Court for the Southern District of New York (or in the state courts of New York County in New York
if either (a) the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular
dispute or (b) the designation of the United States District Court for the Southern District of New York as the exclusive forum for any
particular dispute is, or becomes, invalid, illegal or unenforceable). In the Deposit Agreement each holder and beneficial owner irrevocably
waives any objection which it may at any time have to the laying of venue of any such proceeding, and irrevocably submits to the jurisdiction
of such courts in any such suit, action or proceeding.
Jury Trial Waiver
In the Deposit Agreement,
each party thereto (including, for the avoidance of doubt, each holder and beneficial owner of, and/or holder of interests in, Depositary
Shares or ADRs) irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any
suit, action or proceeding against the depositary and/or us directly or indirectly arising out of, based on or relating in any way to
the Ordinary Shares or other deposited securities, the Depositary Shares or the ADRs, the Deposit Agreement or any transaction contemplated
therein, or the breach thereof (whether based on contract, tort, common law or any other theory), including any claim under the U.S. federal
securities laws.
If we or the depositary were
to oppose a jury trial demand based on such waiver, the court would determine whether the waiver was enforceable in the facts and circumstances
of that case in accordance with applicable state and federal law, including whether a party knowingly, intelligently and voluntarily waived
the right to a jury trial. The waiver to right to a jury trial in the Deposit Agreement is not intended to be deemed a waiver by any holder
or beneficial owner of our or the depositary’s compliance with the U.S. federal securities laws and the rules and regulations promulgated
thereunder.
TAXATION
The
following summary contains a description of the material U.S. federal income tax and United Kingdom tax consequences of the acquisition,
ownership and disposition of Ordinary Shares and Depositary Shares, but it does not purport to be a comprehensive description of all the
tax considerations that may be relevant to a decision to purchase Ordinary Shares or Depositary Shares. The summary is based upon the
on the tax laws of the United States and regulations thereunder and the tax laws of the United Kingdom and regulations thereunder as of
the date hereof, which are subject to change.
Certain United Kingdom
Tax Considerations
The following is a general
summary of certain United Kingdom tax considerations relating to the ownership and disposal of our Ordinary Shares or Depositary Shares
and does not address all possible tax consequences relating to an investment in our Ordinary Shares or Depositary Shares. It is based
on United Kingdom tax law and generally published His Majesty’s Revenue & Customs, or HMRC, practice as of the date of
this prospectus, both of which are subject to change, possibly with retrospective effect. A United Kingdom tax year runs from April 6th
in any year to April 5th in the following year.
Save as provided otherwise,
this summary applies only to a person who is the absolute beneficial owner of our Ordinary Shares or Depositary Shares and who is resident
(and, in the case of an individual, domiciled) in the United Kingdom for tax purposes and who is not resident for tax purposes in any
other jurisdiction and does not have a permanent establishment or fixed base in any other jurisdiction with which the holding of our Ordinary
Shares or Depositary Shares is connected, or a U.K. Holder. A person who is not a U.K. Holder, including a person (a) who is not
resident (or, if resident, is not domiciled) in the United Kingdom for tax purposes, including an individual and company who trades
in the United Kingdom through a branch, agency or permanent establishment in the United Kingdom to which an Ordinary Share or Depositary
Share is attributable, or (b) who is resident or otherwise subject to tax in a jurisdiction outside the United Kingdom, is recommended
to seek the advice of professional advisors in relation to their taxation obligations.
This summary is for general
information only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular investor. It does
not address all of the tax considerations that may be relevant to specific investors in light of their particular circumstances or to
investors subject to special treatment under United Kingdom tax law. In particular this summary:
| · | only applies to an absolute beneficial owner of Ordinary Shares or Depositary Shares and any dividend paid in respect of that Ordinary
Share where the dividend is regarded for United Kingdom tax purposes as that person’s own income (and not the income of some other
person); and |
| · | (a) only addresses the principal United Kingdom tax consequences for an investor who holds Ordinary
Shares or Depositary Shares as a capital asset, (b) does not address the tax consequences that may be relevant to certain special
classes of investor such as a dealer, broker or trader in shares or securities and any other person who holds Ordinary Shares or Depositary
Shares otherwise than as an investment, (c) does not address the tax consequences for a holder that is a financial institution, insurance
company, collective investment scheme, pension scheme, charity or tax-exempt organization, (d) assumes that a holder is not an officer
or employee of the company (nor of any related company) and has not (and is not deemed to have) acquired the Ordinary Shares or Depositary
Shares by virtue of an office or employment, and (e) assumes that a holder does not control or hold (and is not deemed to control
or hold), either alone or together with one or more associated or connected persons, directly or indirectly (including through the holding
of Depositary Shares), an interest of 10% or more in the issued share capital (or in any class thereof), voting power, rights to profits
or capital of the company, and is not otherwise connected with the company. |
This summary further assumes
that a holder of Depositary Shares is the beneficial owner of the underlying Ordinary Shares for United Kingdom direct tax purposes.
POTENTIAL INVESTORS IN
THE DEPOSITARY SHARES SHOULD SATISFY THEMSELVES PRIOR TO INVESTING AS TO THE OVERALL TAX CONSEQUENCES, INCLUDING, SPECIFICALLY, THE CONSEQUENCES
UNDER UNITED KINGDOM TAX LAW AND HMRC PRACTICE OF THE ACQUISITION, OWNERSHIP AND DISPOSAL OF THE ORDINARY SHARES OR DEPOSITARY SHARES,
IN THEIR OWN PARTICULAR CIRCUMSTANCES BY CONSULTING THEIR OWN TAX ADVISERS.
Taxation of Dividends
Withholding Tax. An
individual holder of Ordinary Shares or Depositary Shares who is not a U.K. Holder will not be chargeable to United Kingdom income tax
on a dividend paid by the Company, unless such holder carries on (whether solely or in partnership) a trade, profession or vocation in
the United Kingdom through a branch or agency in the United Kingdom to which the Ordinary Shares or Depositary Shares are attributable.
In these circumstances, such holder may, depending on his or her individual circumstances, be chargeable to United Kingdom income tax
on a dividend received from the Company.
A dividend received by individual U.K. Holders
will be subject to United Kingdom income tax. The rate of United Kingdom income tax that is chargeable on dividends received in either
the tax year 2022/2023 or the tax year 2023/2024 by an individual U.K. Holder who is (i) an additional rate taxpayer is 39.35%, (ii) a
higher rate taxpayer is 33.75%, and (iii) a basic rate taxpayer is 8.75%. An individual U.K. Holder may be entitled to a tax-free
dividend allowance (in addition to their personal allowance) of £2,000 for the tax year 2022/2023 and £1,000 for the tax year
2023/2024, being the amount of dividend income that the relevant individual can receive before United Kingdom income tax is payable. Dividends
within the dividend allowance will still count towards the relevant individual's basic, higher or additional rate bands, however. An individual’s
dividend income is treated as the top slice of their total income that is chargeable to United Kingdom income tax. Dividends which are
covered by an individual’s personal income tax allowance do not count towards and are ignored for the dividend allowance.
Corporation Tax. A U.K. Holder within
the charge to United Kingdom corporation tax may be entitled to exemption from United Kingdom corporation tax in respect of dividend payments
in respect of an Ordinary Share. If the conditions for the exemption are not satisfied or such U.K. Holder elects for an otherwise exempt
dividend to be taxable, United Kingdom corporation tax will be chargeable on the dividend. From April 1, 2023, the main rate of corporation
tax of 25% will apply to companies with profits in excess of £250,000. A lower rate of corporation tax of 19% will apply to companies
with profits of up to £50,000, and a marginal scaled rate between 19% and 25% will apply to companies with profits between £50,000
and £250,000. If potential investors are in any doubt as to their position, they should consult their own professional advisers.
A corporate holder of Ordinary
Shares or Depositary Shares that is not a U.K. Holder will not be subject to United Kingdom corporation tax on a dividend received from
the company, unless it carries on a trade in the United Kingdom through a permanent establishment to which the Ordinary Shares or Depositary
Shares are attributable. In these circumstances, such holder may, depending on its individual circumstances and if the exemption from
United Kingdom corporation tax discussed above does not apply, be chargeable to United Kingdom corporation tax on dividends received from
the Company.
U.K.
Holders. A disposal or deemed disposal of Ordinary Shares or Depositary Shares by an individual U.K. Holder may, depending on his
or her individual circumstances, give rise to a chargeable gain or to an allowable loss for the purpose of United Kingdom capital gains
tax. The principal factors that will determine the capital gains tax position on a disposal of Ordinary Shares or Depositary Shares are
the extent to which the holder realizes any other capital gains in the tax year in which the disposal is made, the extent to which the
holder has incurred capital losses in that or any earlier tax year and the level at which the annual exempt amount for United Kingdom
capital gains tax (the “annual exempt amount”) is set by the United Kingdom government for that tax year. The annual exempt
amount for the 2022/2023 tax year is £12,300 and for the 2023/2024 tax year is £6,000. If, after all allowable deductions,
an individual U.K. Holder’s total taxable income for the relevant tax year exceeds the basic rate income tax limit, a taxable capital
gain accruing on a disposal of an Ordinary Share or a Depositary Shares is taxed at the rate of 20%. In other cases, a taxable capital
gain accruing on a disposal of our Ordinary Shares or Depositary Shares may be taxed at the rate of 10% or the rate of 20% or at a combination
of both rates.
An
individual U.K. Holder who ceases to be resident in the United Kingdom (or who fails to be regarded as resident in a territory outside
the United Kingdom for the purposes of double taxation relief) for a period of less than five calendar years and who disposes of Ordinary
Shares or Depositary Shares during that period of temporary non-United Kingdom residence may be liable to United Kingdom capital gains
tax on a chargeable gain accruing on such disposal on his or her return to the United Kingdom (or upon ceasing to be regarded as resident
outside the United Kingdom for the purposes of double taxation relief) (subject to available exemptions or reliefs).
A
disposal (or deemed disposal) of Ordinary Shares or Depositary Shares by a corporate U.K. Holder may give rise to a chargeable gain or
an allowable loss for such holder for the purpose of United Kingdom corporation tax.
Any
gain or loss in respect of currency fluctuations over the period of holding Ordinary Shares or Depositary Shares is also brought into
account on a disposal.
Non-U.K.
Holders. An individual holder who is not a U.K. Holder will not be liable to United Kingdom capital gains tax on capital gains realized
on the disposal of Ordinary Shares or Depositary Shares unless such holder carries on (whether solely or in partnership) a trade, profession
or vocation in the U.K. through a branch or agency in the United Kingdom to which the Ordinary Shares or Depositary Shares are attributable.
In these circumstances, such holder may, depending on his or her individual circumstances, be chargeable to United Kingdom capital gains
tax on chargeable gains arising from a disposal of his or her Ordinary Shares or Depositary Shares.
A
corporate holder of Ordinary Shares or Depositary Shares that is not a U.K. Holder will not be liable for United Kingdom corporation tax
on chargeable gains realized on the disposal of Ordinary Shares or Depositary Shares unless it carries on a trade in the United Kingdom
through a permanent establishment to which the Ordinary Shares or Depositary Shares are attributable. In these circumstances, a disposal
(or deemed disposal) of Ordinary Shares or Depositary Shares by such holder may give rise to a chargeable gain or an allowable loss for
the purposes of United Kingdom corporation tax.
Inheritance Tax
If
for the purposes of the Double Taxation Relief (Taxes on Estates of Deceased Persons and on Gifts) Treaty United States of America Order
1979 (SI 1979/1454) between the United States and the United Kingdom an individual holder is at the time of their death or a transfer
made during their lifetime, domiciled in the United States and is not a national of the United Kingdom, any Ordinary Shares or Depositary
Shares beneficially owned by that holder should not generally be subject to United Kingdom inheritance tax, provided that any applicable
United States federal gift or estate tax liability is paid, except where (i) the Ordinary Shares or Depositary Shares are part of
the business property of a United Kingdom permanent establishment or pertains to a United Kingdom fixed base used for the performance
of independent personal services; or (ii) the Ordinary Shares or Depositary Shares are comprised in a settlement unless, at the time
the settlement was made, the settlor was domiciled in the United States and not a national of the United Kingdom (in which case no charge
to United Kingdom inheritance tax should apply).
Stamp Duty and Stamp Duty Reserve Tax
The United Kingdom stamp duty,
or stamp duty, and United Kingdom stamp duty reserve tax, or SDRT, treatment of the issue and transfer of, and the agreement to transfer,
an ordinary share outside a depositary receipt system or a clearance service is discussed in the paragraphs under “General”
below. The stamp duty and SDRT treatment of such transactions in relation to such systems is discussed in the paragraphs under “Depositary
Receipt Systems and Clearance Services” below.
General
An
agreement to transfer an ordinary share will normally give rise to a charge to SDRT at the rate of 0.5% of the amount or value of the
consideration payable for the transfer. SDRT is, in general, payable by the purchaser.
The
transfer of an Ordinary Share would be subject to stamp duty at the rate of 0.5% of the consideration given for the transfer (rounded
up to the next £5). The purchaser is liable to HMRC for the payment of the stamp duty (if any). Under current HMRC guidance, no
stamp duty should be payable on a written instrument transferring a Depositary Share or on a written agreement to transfer a Depositary
Share, on the basis that the Depositary Share is not regarded as either “stock” or a “marketable security” for
United Kingdom stamp duty purposes.
If
a duly stamped transfer completing an agreement to transfer is produced within six years of the date on which the agreement is made (or,
if the agreement is conditional, the date on which the agreement becomes unconditional) any SDRT already paid is generally repayable,
normally with interest, and any SDRT charge yet to be paid is canceled to avoid a double charge as the stamp duty has been paid.
No
SDRT or stamp duty is chargeable in respect of shares that are admitted to trading on a “recognized growth market” and not
listed on any “recognized stock exchange,” or the AIM Exemption. For so long as the Ordinary Shares were admitted to trading
on AIM (which qualifies as a “recognized growth market”) and not listed on a market that would qualify as a “recognized
stock exchange,” the AIM Exemption would apply and the transfer of Ordinary Shares or agreement to transfer Ordinary Shares would
be exempt from the charge to stamp duty and/or SDRT (as applicable) under the AIM Exemption. Following the cancellation of admission of
the Ordinary Shares on AIM, the AIM Exemption no longer applies.
Depositary Receipt Systems and Clearance
Services
The
Court of Justice of the European Union in C-569/07 HSBC Holdings Plc, Vidacos Nominees Limited v The Commissioners of Her Majesty’s
Revenue & Customs and the First-tier Tax Tribunal decision in HSBC Holdings Plc and the Bank of New York Mellon
Corporation v The Commissioners of Her Majesty’s Revenue & Customs, have considered the provisions of the European
Union Council Directive 69/335/EEC, which was subsequently substituted by the European Union Council Directive 2008/7/EEC, or the E.U.
Directives. Following these decisions HMRC has publicly confirmed that issues or transfers of shares of United Kingdom incorporated companies,
such as us, to a clearance service (such as, in our understanding, DTC) or a depositary receipt system will not be charged to United Kingdom
SDRT at 1.5% where that issue or transfer is an integral part of a raising of new capital.
It
was announced as part of the United Kingdom Budget 2017 by the United Kingdom government that the 1.5% stamp duty and SDRT charge will
not be enforced on the issue of shares by United Kingdom incorporated companies (and transfers of such shares where the transfer is integral
to new capital raising) into clearance services and depositary receipt systems following Brexit. However, the United Kingdom government
could potentially introduce new United Kingdom legislation with the effect that a future issue or transfer of our Ordinary Shares into
a clearance service or depositary receipt system (even where such an issue or transfer is an integral part of the raising of new capital
by the company) may potentially become chargeable to 1.5% stamp duty or SDRT.
Where
an ordinary share is transferred (i) to, or to a nominee for, a person whose business is or includes the provision of clearance services
or (ii) to, or to a nominee for a person whose business is or includes issuing depositary receipts and that transfer is not integral
to the raising of new capital by the company, stamp duty or SDRT would generally be chargeable at the rate of 1.5% of the amount or value
of the consideration given or, in certain circumstances, the value of the shares. Such a stamp duty or SDRT charge will arise if the transfer
takes place at a time when the Ordinary Shares are admitted to trading on AIM such that the AIM Exemption would apply. Following the cancellation
of the admission of the Ordinary Shares on AIM, however, the AIM Exemption no longer is available.
There
is an exception from the 1.5% charge on the transfer to, or to a nominee, a clearance service where the clearance service has made and
maintained an election under section 97A(1) of the Finance Act 1986, which has been approved by HMRC. If such an election were made by
a clearance service, SDRT at the rate of 0.5% of the amount or value of the consideration payable for the transfer would arise on any
transfer of an ordinary share into such a clearance service and on subsequent agreements to transfer such share within such clearance
service. It is our understanding that DTC has not to date made an election under section 97A(1) of the Finance Act of 1986.
Any
liability for stamp duty or SDRT in respect of a transfer into a clearance service or depositary receipt system, or in respect of a transfer
within such a service, which does arise, will strictly be accountable to HMRC by the clearance service or depositary receipt system operator
or their nominee, as the case may be, but will, in practice, be payable by the participants in the clearance service or depositary receipt
system.
Certain United States
Taxation Matters
The following is a summary
of material United States federal income tax consequences of the ownership and disposition of Depositary Shares by United States holders
(as defined below). This summary is for general information only and is not tax advice. Each investor should consult its tax advisor with
respect to the tax consequences of the ownership and disposition of our securities.
This summary is based on provisions
of the Internal Revenue Code of 1986, as amended, or the Code, United States Treasury regulations promulgated thereunder (whether final,
temporary, or proposed), administrative rulings, and judicial interpretations thereof, and the Convention Between the Government of the
United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains of 2001, as amended (referred to below as the
United States-U.K. Treaty), all as in effect on the date hereof, and all of which are subject to change, possibly with retroactive effect.
For purposes of this discussion,
the term “United States holder” means a holder of our Ordinary Shares or Depositary Shares that is, for United States federal
income tax purposes:
| · | an individual who is a citizen or resident of the United States; |
| · | a corporation or other entity taxable as a corporation that is created or organized in the United States
or under the laws of the United States or any state thereof or the District of Columbia; |
| · | an estate the income of which is subject to United States federal income taxation regardless of its source;
or |
| · | any trust if (a) a court within the United States is able to exercise primary supervision over the administration
of the trust and one or more United States persons have the authority to control all substantial decisions of the trust, or (b) such trust
has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. |
This summary addresses only
the United States federal income tax considerations for United States holders that acquire and hold the Depositary Shares as capital assets
within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all aspects
of United States federal income taxation that may be relevant to a holder in light of its particular circumstances, or that may apply
to holders that are subject to special treatment under the United States federal income tax laws (including, for example, banks, financial
institutions, underwriters, insurance companies, dealers in securities or foreign currencies, traders in securities who elect the mark-to-market
method of accounting for their securities, persons subject to the alternative minimum tax, persons that have a functional currency other
than the United States dollar, tax-exempt organizations (including private foundations), mutual funds, subchapter S corporations, partnerships
or other pass-through entities for United States federal income tax purposes, certain expatriates, corporations that accumulate earnings
to avoid United States federal income tax, persons who hold Depositary Shares as part of a hedge, straddle, constructive sale, conversion
or other integrated transaction, persons who acquire Depositary Shares through the exercise of options or other compensation arrangements,
persons who own (or are treated as owning) 10% or more of our outstanding voting stock, or persons who are not United States holders).
In addition, this discussion does not address any aspect of state, local, foreign, estate, gift or other tax law that may apply to holders
of Depositary Shares.
The United States federal
income tax treatment of a partner in a partnership (including any entity or arrangement treated as a partnership for United States federal
income tax purposes) generally will depend on the status of the partner and the activities of the partnership. A partner in such a partnership
should consult its tax advisor regarding the associated tax consequences.
Consequences Relating to Ownership and Disposition
of Depositary Shares
Ownership of Depositary
Shares. For United States federal income tax purposes, a holder of Depositary Shares will generally be treated as if such holder directly
owned the ordinary shares represented by such Depositary Shares.
Distributions on Depositary
Shares. Subject to the discussion below under “—Passive Foreign Investment Company Rules,” the gross
amount of any distribution on Depositary Shares (including withheld taxes, if any) made out of our current or accumulated earnings and
profits (as determined for United States federal income tax purposes) will generally be taxable to a United States holder as dividend
income on the date such distribution is actually or constructively received. Any such dividends paid to corporate United States holders
generally will not qualify for the dividends received deduction that may otherwise be allowed under the Code. Distributions in excess
of our current and accumulated earnings and profits would generally be treated first as a non-taxable return of capital to the extent
of the United States holder’s basis in the Depositary Shares, and thereafter as capital gain. However, since we do not calculate
our earnings and profits under United States federal income tax principles, it is expected that any distribution on Depositary Shares
will be reported as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain
under the rules described above.
Dividends paid in currencies
other than the United States dollar, if any, will generally be taxable to a United States holder as ordinary dividend income in an amount
equal to the United States dollar value of the currency received on the date such distribution is actually or constructively received.
Such United States dollar value must be determined using the spot rate of exchange on such date, regardless of whether the non-United
States currency is actually converted into United States dollars on such date. The United States holder may realize exchange gain or loss
if the currency received is converted into United States dollars after the date on which it is actually or constructively received. In
general, any such gain or loss will be ordinary and will be treated as from sources within the United States for United States foreign
tax credit purposes.
Subject to the discussion
below under “—3.8% Medicare Tax on Net Investment Income,” dividends received by certain non-corporate
United States holders (including individuals) from a “qualified foreign corporation” may be eligible for reduced rates of
taxation, currently at a maximum rate of 20%, provided that certain holding period requirements and other conditions are satisfied. For
these purposes, a foreign corporation will generally be treated as a qualified foreign corporation with respect to dividends paid by that
corporation on shares that are readily tradable on an established securities market in the United States. United States Treasury Department
guidance indicates that the Depositary Shares, which are listed on the NASDAQ Capital Market, would be considered readily tradable on
an established securities market in the United States. However, there can be no assurance that the Depositary Shares will be considered
readily tradable on an established securities market in future years. A foreign corporation is also treated as a qualified foreign corporation
if it is eligible for the benefits of a comprehensive income tax treaty with the United States which is determined by the United States
Treasury Department to be satisfactory for purposes of these rules and which includes an exchange of information provision. The United
States Treasury Department has determined that the United States-U.K. Treaty meets these requirements. We would not constitute a qualified
foreign corporation for purposes of these rules if we are a passive foreign investment company for the taxable year in which we pay a
dividend or for the preceding taxable year, as discussed below under “—Passive Foreign Investment Company Rules.”
Subject to certain conditions
and limitations, non-United States taxes, if any, withheld on dividends paid by the Company may be treated as foreign taxes eligible for
a credit against a United States holder’s United States federal income tax liability under the United States foreign tax credit
rules. The rules governing the United States foreign tax credit are complex, and United States holders should consult their tax advisors
regarding the availability of the United States foreign tax credit under their particular circumstances.
Sale of Depositary Shares
A United States holder will
generally recognize gain or loss on any sale, exchange, redemption, or other taxable disposition of Depositary Shares in an amount equal
to the difference between the amount realized on the disposition and such holder’s tax basis in such securities. Subject to the
discussion below under “—Passive Foreign Investment Company Rules,” any gain or loss recognized by a United States
holder on a taxable disposition of Depositary Shares will generally be capital gain or loss and will be long-term capital gain or loss
if the holder’s holding period in such share exceeds one year at the time of the disposition. The deductibility of capital losses
is subject to limitations.
For a cash basis taxpayer,
units of foreign currency received will generally be translated into United States dollars at the spot rate on the settlement date of
the sale. In that case, no foreign currency exchange gain or loss will result from currency fluctuations between the trade date and the
settlement date of such sale. An accrual basis taxpayer may elect to apply the same rules applicable to cash basis taxpayers with respect
to the sale of ADRs that are traded on an established securities market, provided that the election must be applied consistently from
year to year and cannot be changed without the consent of the IRS. For an accrual method taxpayer who does not make such an election,
units of foreign currency received will generally be translated into United States dollars at the spot rate on the trade date of the sale.
Such an accrual basis taxpayer may recognize foreign currency exchange gain or loss based on currency fluctuations between the trade date
and the settlement date of such sale. In general, any such gain or loss will be ordinary and will be treated as from sources within the
United States for United States foreign tax credit purposes.
Passive Foreign Investment Company Rules
A foreign corporation is a
PFIC if either (1) 75% or more of its gross income for the taxable year is passive income or (2) the average percentage of assets held
by such corporation during the taxable year that produce passive income or that are held for the production of passive income is at least
50%. For purposes of applying the tests in the preceding sentence, the foreign corporation is deemed to own its proportionate share of
the assets, and to receive directly its proportionate share of the income, of any other corporation of which the foreign corporation owns,
directly or indirectly, at least 25% by value of the stock.
Based
upon estimates with respect to its income, assets, and operations, it is expected that we will not be a PFIC for the current taxable year.
However, because the determination of PFIC status must be made on an annual basis after the end of the taxable year and will depend on
the composition of the income and assets, as well as the nature of the activities, of our activities and those of our subsidiaries from
time to time, there can be no assurance that we will not be considered a PFIC for any taxable year.
If
we were to be classified as a PFIC for any taxable year in which a United States holder held the Depositary Shares, various adverse United
States tax consequences could result to such United States holders, including taxation of gain on a sale or other disposition of the shares
of the corporation, Depositary Shares at ordinary income rates and imposition of an interest charge on gain or on distributions with respect
to the shares, Depositary Shares. Unless a United States holder of PFIC shares elects, in either case if eligible, to be taxed annually
on a mark-to-market basis or makes a QEF election and certain other requirements are met, gain realized on the sale or other disposition
of PFIC shares would generally not be treated as capital gain. Instead, the United States holder would be treated as if the United States
holder had realized such gain ratably over the holder’s holding period for such securities. The amounts allocated to the taxable
year of sale or other disposition and to any year before the foreign corporation became a PFIC would be taxed as ordinary income. The
amount allocated to each other taxable year would be subject to tax at the highest rate in effect for such year, together with an interest
charge in respect of the tax attributable to each such year. Similar rules apply to the extent any distribution in respect of PFIC shares
exceeds 125% of the average annual distribution on such PFIC securities received by the shareholder during the preceding three years or
holding period, whichever is shorter. With certain exceptions, a foreign corporation is treated as a PFIC with respect to a shareholder
(or warrant holder, as applicable) if the corporation was a PFIC with respect to such holder at any time during the holder’s holding
period of the foreign corporation’s stock or warrants. Dividends paid to with respect to shares of a PFIC are not eligible for the
special tax rates applicable to qualified dividend income of certain non-corporate holders. Instead, such dividend income is taxable at
rates applicable to ordinary income.
If
we were to be treated as a PFIC, the tax consequences described above could be avoided by a “mark-to-market” election with
respect to the Depositary Shares. A United States holder making a “mark-to-market” election (assuming the requirements for
such an election are satisfied) generally would (i) be required to include as ordinary income the excess of the fair market value of the
Depositary Shares on the last day of the United States holder’s taxable year over the United States holder’s adjusted tax
basis in such Depositary Shares and (ii) be allowed a deduction in an amount equal to the lesser of (A) the excess, if any, of the United
States holder’s adjusted tax basis in the Depositary Shares over the fair market value of such Depositary Shares on the last day
of the United States holder’s taxable year or (B) the excess, if any, of the amount included in income because of the election for
prior taxable years over the amount allowed as a deduction because of the election for prior taxable years. In addition, upon a sale or
other taxable disposition of Depositary Shares, a United States holder would recognize ordinary income or loss (which loss could not be
in excess of the amount included in income because of the election for prior taxable years over the amount allowed as a deduction because
of the election for prior taxable years). If we were to be treated as a PFIC, different rules would apply to a United States holder making
a QEF election with respect to Depositary Shares. However, we do not intend to prepare or provide the information necessary for United
States shareholders to make a QEF election.
United
States holders are urged to consult their own tax advisors about the PFIC rules, including the availability of the “mark-to-market”
election.
3.8% Medicare Tax on “Net Investment
Income”
A 3.8% tax, or “Medicare
Tax,” is imposed on all or a portion of “net investment income,” which may include any gain realized or amounts received
with respect to Depositary Shares received by (i) United States holders that are individuals with modified adjusted gross income in excess
of certain thresholds, and (ii) certain estates and trusts. United States holders should consult their own tax advisors with respect to
the applicability of the Medicare Tax resulting from ownership or disposition of Depositary Shares.
Information Reporting and Backup Withholding
United States holders may
be subject to information reporting requirements and may be subject to backup withholding with respect to dividends on Depositary Shares
and on the proceeds from the sale, exchange, or disposition of Depositary Shares, currently at a rate of 24%, unless the United States
holder provides an accurate taxpayer identification number and complies with certain certification procedures or otherwise establishes
an exemption from backup withholding. Backup withholding is not an additional tax and amounts withheld may be allowed as a credit against
the United States holder’s United States federal income tax liability and may entitle the United States holder to a refund, provided
that certain required information is timely furnished to the IRS.
Sale of Depositary Shares or Warrants
A United States holder will
generally recognize gain or loss on any sale, exchange, redemption, or other taxable disposition of Depositary Shares in an amount equal
to the difference between the amount realized on the disposition and such holder’s tax basis in such securities. Subject to the
discussion below under “—Passive Foreign Investment Company Rules,” any gain or loss recognized by a United States
holder on a taxable disposition of Depositary Shares will generally be capital gain or loss and will be long-term capital gain or loss
if the holder’s holding period in such share exceeds one year at the time of the disposition. The deductibility of capital losses
is subject to limitations.
For a cash basis taxpayer,
units of foreign currency received will generally be translated into United States dollars at the spot rate on the settlement date of
the sale. In that case, no foreign currency exchange gain or loss will result from currency fluctuations between the trade date and the
settlement date of such sale. An accrual basis taxpayer may elect to apply the same rules applicable to cash basis taxpayers with respect
to the sale of ADRs that are traded on an established securities market, provided that the election must be applied consistently from
year to year and cannot be changed without the consent of the IRS. For an accrual method taxpayer who does not make such an election,
units of foreign currency received will generally be translated into United States dollars at the spot rate on the trade date of the sale.
Such an accrual basis taxpayer may recognize foreign currency exchange gain or loss based on currency fluctuations between the trade date
and the settlement date of such sale. In general, any such gain or loss will be ordinary and will be treated as from sources within the
United States for United States foreign tax credit purposes.
SELLING SHAREHOLDERS
This prospectus covers the
possible resale from time to time by the selling shareholders identified in the table below of Ordinary Shares represented by Depositary
Shares, including Ordinary Shares represented by Depositary Shares issuable upon the exercise of the Series J Warrants, Series K Warrants,
and the July 2024 Placement Agent Warrants (referred to in this section collectively and individually as the “warrants”).
The selling shareholders may sell some, all or none of their Ordinary Shares represented by Depositary Shares. We do not know how long
the selling shareholders will hold the warrants, whether any will exercise the warrants, and upon such exercise, how long such selling
shareholders will hold the Ordinary Shares represented by Depositary Shares before selling them, and we currently have no agreements,
arrangements or understandings with the selling shareholders regarding the sale of any of the shares.
The table below lists the
selling shareholders and other information regarding the beneficial ownership of the Ordinary Shares represented by Depositary Shares
by each of the selling shareholders. The second column lists the number of Ordinary Shares represented by Depositary Shares beneficially
owned by each selling shareholder, based on its ownership of Depositary Shares and warrants to purchase Depositary Shares, as of July
23, 2024, assuming exercise of the warrants held by the selling shareholders on that date, without regard to any limitations on conversions
or exercises. The third column lists the maximum number of Ordinary Shares represented by Depositary Shares being offered in this prospectus
by the selling shareholders. The fourth and fifth columns list the amount of Ordinary Shares represented by Depositary Shares owned after
the offering, by number of Ordinary Shares represented by Depositary Shares and percentage of outstanding Ordinary Shares, assuming in
both cases the sale of all of the Ordinary Shares represented by Depositary Shares offered by the selling shareholders pursuant to this
prospectus, and without regard to any limitations on conversions or exercises.
In accordance with the terms
of a registration rights agreement with the selling shareholders, this prospectus generally covers the resale of the sum of (i) the number
of Ordinary Shares issued to the selling shareholders at the Closing and the number of Ordinary Shares issued to the selling shareholders
upon the exercise of the warrants issued at the Closing and (ii) the maximum number of Ordinary Shares upon exercise of the related warrants,
determined as if the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration
statement was initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and
all subject to adjustment as provided in the registration right agreement, without regard to any limitations on the exercise of the warrants.
Under the terms of the warrants,
a selling shareholder may not exercise the warrants to the extent such exercise would cause such selling shareholder, together with its
affiliates and attribution parties, to beneficially own a number of Ordinary Shares which would exceed 4.99% or 9.99%, as applicable,
of our then outstanding Ordinary Shares following such exercise, excluding for purposes of such determination Ordinary Shares issuable
upon exercise of such warrants which have not been exercised. The beneficial ownership limitation may be increased or decreased, provided
that in no event shall it exceed 9.99%, upon notice to us, provided that any increase in the beneficial ownership limitation shall not
be effective until 61 days following the receipt of such notice by us. The number of shares in the table below does not reflect this limitation.
See “Plan of Distribution.” The selling shareholders may sell all, some or none of their Ordinary Shares in this offering.
See “Plan of Distribution.”
| Name of Selling Shareholder | |
Number of Ordinary
Shares Owned Prior
to
Offering ** | | |
Maximum Number of
Ordinary Shares to
be Sold
Pursuant to this
Prospectus ** | | |
Number of
Ordinary
Shares Owned After
Offering** (1) | | |
Percentage
of
Ordinary
Shares
Owned
after the
Offering**
* | |
| Bigger Capital Fund, LP (2) | |
| 759,956,400 | | |
| 425,531,200 | | |
| 334,425,200 | | |
| 5.4 | % |
| Brio Capital Master Fund Ltd. (3) | |
| 1,795,408,400 | | |
| 851,064,000 | | |
| 944,344,400 | | |
| 14.0 | % |
| Cavalry Fund I LP (4) | |
| 2,311,489,200 | | |
| 851,063,200 | | |
| 1,460,426,000 | | |
| 20.1 | % |
| District 2 Capital Fund LP (5) | |
| 787,983,200 | | |
| 425,531,200 | | |
| 362,452,000 | | |
| 5.9 | % |
| Iroquois Capital Investment Group LLC (6) | |
| 681,986,400 | | |
| 553,191,200 | | |
| 128,795,200 | | |
| 2.2 | % |
| Iroquois Master Fund Ltd. (7) | |
| 438,789,600 | | |
| 297,872,000 | | |
| 140,917,600 | | |
| 2.4 | % |
| Ionic Ventures, LLC (8) | |
| 1,586,262,400 | | |
| 851,063,200 | | |
| 735,199,200 | | |
| 11.2 | % |
| Mercer Street Global Opportunity Fund LLC (9) | |
| 569,554,800 | | |
| 8,510,400 | | |
| 561,044,400 | | |
| 8.8 | % |
| Ladenburg Thalmann & Co., Inc. (10) | |
| 112,906,800 | | |
| 34,110,400 | | |
| 78,796,400 | | |
| 1.3 | % |
| Nicholas Stergis (11) | |
| 74,501,200 | | |
| 42,212,000 | | |
| 32,289,200 | | |
| * | |
| David Coherd (12) | |
| 9,636,800 | | |
| 5,116,400 | | |
| 4,520,400 | | |
| * | |
| Andrew Moorefield (13) | |
| 2,558,400 | | |
| 2,558,400 | | |
| -- | | |
| -- | |
| Marc Weinberger (14) | |
| 3,216,400 | | |
| 1,279,200 | | |
| 1,937,200 | | |
| * | |
__________________
* Represents beneficial ownership of less than 1%.
** Subject to beneficial ownership blocker.
*** Based upon 5,808,395,322 Ordinary Shares issued and outstanding
as of July 23, 2024.
| (1) | Assumes that all Ordinary Shares being registered under the registration
statement of which this prospectus forms a part are sold in this offering, and that none of the selling stockholders acquire additional
Ordinary Shares after the date of this prospectus and prior to completion of this offering. |
| (2) | The selling shareholder holds warrants issued by us in prior transactions
which entitle the selling shareholder to purchase an aggregate of 334,425,200 Ordinary Shares (in the form of Depositary Shares), and
(ii) Series J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 212,765,600 Ordinary Shares (in
the form of Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 212,765,600
Ordinary Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership
limitation of 9.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling
shareholder and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation.
The amounts and percentages in the table do not give effect to the 9.99% beneficial ownership limitation, if applicable. The principal
business address of Bigger Capital Fund, LP is 11700 West Charleston Blvd, #170-659, Las Vegas, NV 89135. |
| (3) | The selling shareholder holds (i) 571,144,400 Ordinary Shares (in the form of Depositary Shares), (ii)
38,000,000 Ordinary Shares (in the form of Depositary Shares) held in abeyance in accordance with the terms of the Warrant Agreements,
(iii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase an aggregate of 335,200,000 Ordinary
Shares (in the form of Depositary Shares), and (iv) Series J Warrants issued by us which entitle
the selling shareholder to purchase an aggregate of 425,532,000 Ordinary Shares (in the form of Depositary Shares) and Series K Warrants
issued by us which entitle the selling shareholder to purchase an aggregate of 425,532,000 Ordinary Shares (in the form of Depositary
Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation of 4.99%, which does
not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder and its affiliates
owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts and percentages
in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The principal business address of Brio Capital
Master Fund Ltd. is c/o Brio Capital Management LLC, 100 Merrick Road, Suite 401W, Rockville Centre, NY 11570. |
| (4) | The selling shareholder holds (i) 471,929,600 Ordinary Shares
(in the form of Depositary Shares), (ii) 234,731,600 Ordinary Shares (in the form of Depositary Shares) held in abeyance in accordance
with the terms of the Warrant Agreements, (iii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase
an aggregate of 753,764,800 Ordinary Shares (in the form of Depositary Shares), and (iv) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 425,531,600 Ordinary Shares (in the form of
Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 425,531,600 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The principal business address
of Cavalry Fund I LP is 82 E. Allendale Road, Suite 5B, Saddle River, NJ 07458. |
| (5) | The selling shareholder holds (i) warrants issued by us in prior transactions which entitle the selling
shareholder to purchase an aggregate of 362,452,000 Ordinary Shares (in the form of Depositary Shares), and (ii) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 212,765,600 Ordinary Shares (in the form of
Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 212,765,600 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership
limitation of 9.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling
shareholder and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation.
The amounts and percentages in the table do not give effect to the 9.99% beneficial ownership limitation, if applicable. The principal
business address of District 2 Capital Fund LP is 14 Wall Street, 2nd Floor, Huntington, NY 11743. |
| (6) | The selling shareholder holds (i) 97,500,000 Ordinary Shares
(in the form of Depositary Shares), (ii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase
an aggregate of 31,295,200 Ordinary Shares (in the form of Depositary Shares), and (iii) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 276,595,600 Ordinary Shares (in the form of
Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 276,595,600 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99% or 9.99%, as applicable, which does not permit the selling shareholder to exercise that portion of the warrants that would result
in the selling shareholder and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership
limitation. The amounts and percentages in the table do not give effect to the 4.99% or 9.99% beneficial ownership limitation, if applicable.
Richard Abbe is the managing member of Iroquois Capital Investment Group LLC. Mr. Abbe has voting control and investment discretion over
securities held by Iroquois Capital Investment Group LLC. As such, Mr. Abbe may be deemed to be the beneficial owner (as determined under
Section 13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by Iroquois Capital Investment Group LLC. The
principal business address of Iroquois Capital Investment Group LLC is 2 Overhill Road, Suite 400, Scarsdale, NY 10583. |
| (7) | The selling shareholder holds (i) 82,500,000 Ordinary Shares
(in the form of Depositary Shares), (ii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase
an aggregate of 58,417,600 Ordinary Shares (in the form of Depositary Shares), and (iii) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 148,936,000 Ordinary Shares (in the form of
Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 148,936,000 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99% or 9.99%, as applicable, which does not permit the selling shareholder to exercise that portion of the warrants that would result
in the selling shareholder and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership
limitation. The amounts and percentages in the table do not give effect to the 4.99% or 9.99% beneficial ownership limitation, if applicable.
Iroquois Capital Management L.L.C. is the investment manager of Iroquois Master Fund, Ltd. Iroquois Capital Management, LLC has voting
control and investment discretion over securities held by Iroquois Master Fund. As Managing Members of Iroquois Capital Management, LLC,
Richard Abbe and Kimberly Page make voting and investment decisions on behalf of Iroquois Capital Management, LLC in its capacity as investment
manager to Iroquois Master Fund Ltd. As a result of the foregoing, Mr. Abbe and Mrs. Page may be deemed to have beneficial ownership (as
determined under Section 13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by Iroquois Capital Management
and Iroquois Master Fund. The principal business address of Iroquois Master Fund Ltd. is c/o Iroquois Capital Management, LLC, 2 Overhill
Road, Suite 400, Scarsdale, NY 10583. |
| (8) | The selling shareholder holds (i) 420,800,000 Ordinary Shares
(in the form of Depositary Shares), (ii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase
an aggregate of 314,399,200 Ordinary Shares (in the form of Depositary Shares), and (iii) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 425,531,600 Ordinary Shares (in the form of
Depositary Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 425,531,600 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The principal business address
of Ionic Ventures, LLC is 3053 Fillmore Street, Suite 2565, San Francisco, CA 94123. |
| (9) | The selling shareholder (i) 55,417,200 Ordinary Shares
(in the form of Depositary Shares), (ii) 14,978,800 Ordinary Shares (in the form of Depositary Shares) held in abeyance in accordance
with the terms of the Warrant Agreements, (iii) warrants issued by us in prior transactions which entitle the selling shareholder to purchase
an aggregate of 490,648,400 Ordinary Shares (in the form of Depositary Shares), and (iv) Series
J Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 4,255,200 Ordinary Shares (in the form of Depositary
Shares) and Series K Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 4,255,200 Ordinary Shares
(in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The principal business address
of Mercer Street Global Opportunity Fund, LLC is 1111 Brickell Avenue, Suite 2920, Miami, FL 33131. |
| (10) | The selling shareholder holds (i) warrants issued by us in
prior transactions which entitle the selling shareholder to purchase an aggregate of 78,796,400 Ordinary Shares (in the form of Depositary
Shares), and (ii) July 2024 Placement Agent Warrants issued by us which entitle the selling shareholder
to purchase an aggregate of 34,110,400 Ordinary Shares (in the form of Depositary Shares)
and which we are registering hereby. The warrants are subject to a beneficial ownership limitation of 4.99%, which does not permit the
selling shareholder to exercise that portion of the warrants that would result in the selling shareholder and its affiliates owning, after
exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts and percentages in the table do
not give effect to the 4.99% beneficial ownership limitation, if applicable. The principal business address of Ladenburg is 640 Fifth
Avenue, 4th Floor, New York, New York 10019. |
| (11) | The selling shareholder holds (i) warrants previously issued which
entitle the holder to purchase up to an aggregate of 32,289,200 Ordinary Shares (in the form of Depositary Shares), and (ii) July
2024 Placement Agent Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 42,212,000 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The selling shareholder is
an affiliate of Ladenburg, a broker-dealer. The principal business address of the selling shareholder is 640 Fifth Avenue, 4th Floor,
New York, New York 10019. |
| (12) | The selling shareholder holds (i) warrants previously issued which
entitle the holder to purchase up to an aggregate of 4,520,400 Ordinary Shares (in the form of Depositary Shares), and (ii) July
2024 Placement Agent Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 5,116,400 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The selling shareholder is
an affiliate of Ladenburg, a broker-dealer. The principal business address of the selling shareholder is 640 Fifth Avenue, 4th Floor,
New York, New York 10019. |
| (13) | The selling shareholder holds July 2024 Placement Agent Warrants
which entitle the holder to purchase up to an aggregate of 2,558,400 Ordinary Shares (in the form of Depositary Shares) and which we are
registering hereby. The warrants are subject to a beneficial ownership limitation of 4.99%, which does not permit the selling shareholder
to exercise that portion of the warrants that would result in the selling shareholder and its affiliates owning, after exercise, a number
of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts and percentages in the table do not give effect to
the 4.99% beneficial ownership limitation, if applicable. The selling shareholder is an affiliate of Ladenburg, a broker-dealer. The principal
business address of the selling shareholder is 640 Fifth Avenue, 4th Floor, New York, New York 10019. |
| (14) | The selling shareholder holds (i) warrants previously issued which
entitle the holder to purchase up to an aggregate of 1,937,200 Ordinary Shares (in the form of Depositary Shares), and (ii) July
2024 Placement Agent Warrants issued by us which entitle the selling shareholder to purchase an aggregate of 1,279,200 Ordinary
Shares (in the form of Depositary Shares) and which we are registering hereby. The warrants are subject to a beneficial ownership limitation
of 4.99%, which does not permit the selling shareholder to exercise that portion of the warrants that would result in the selling shareholder
and its affiliates owning, after exercise, a number of our Ordinary Shares in excess of the beneficial ownership limitation. The amounts
and percentages in the table do not give effect to the 4.99% beneficial ownership limitation, if applicable. The selling shareholder is
an affiliate of Ladenburg, a broker-dealer. The principal business address of the selling shareholder is 640 Fifth Avenue, 4th Floor,
New York, New York 10019. |
PLAN OF DISTRIBUTION
Each selling shareholder and
any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their Ordinary Shares represented
by Depositary Shares covered by this prospectus on the principal trading market or any other stock exchange, market or trading facility
on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A selling shareholder
may use any one or more of the following methods when selling securities:
| · | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
| · | block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the
block as principal to facilitate the transaction; |
| · | purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
| · | an exchange distribution in accordance with the rules of the applicable exchange; |
| · | privately negotiated transactions; |
| · | settlement of short sales; |
| · | in transactions through broker-dealers that agree with the selling shareholders to sell a specified number of such securities at a
stipulated price per security; |
| · | through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
| · | a combination of any such methods of sale; or |
| · | any other method permitted pursuant to applicable law. |
The selling shareholders may
also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available, rather than under
this prospectus.
Broker-dealers engaged by
the selling shareholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from the selling shareholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts
to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a
customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in
compliance with FINRA IM-2440.
In connection with the sale
of the securities or interests therein, the selling shareholders may enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling
shareholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The selling shareholders may also enter into option or other transactions with
broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution
may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The selling shareholders and
any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning
of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each selling shareholders has informed the Company that it does not have any written or oral agreement or understanding, directly
or indirectly, with any person to distribute the securities.
The Company is required to
pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify
the selling shareholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We agreed to keep this prospectus
effective until no holder owns any warrants or Depositary Shares issuable upon exercise thereof; provided, however, that we will not be
required to maintain effectiveness so long as the securities may be resold by the selling shareholders without registration and without
regard to any volume or manner-of-sale limitations by reason of Rule 144, and without the requirement for the Company to be in compliance
with the current public information under Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in
certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and
regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the Depositary Shares for the applicable restricted period, as defined in Regulation M, prior to the
commencement of the distribution. In addition, the selling shareholders will be subject to applicable provisions of the Exchange Act and
the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the Depositary Shares
by the selling shareholders or any other person. We will make copies of this prospectus available to the selling shareholders and have
informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance
with Rule 172 under the Securities Act).
EXPENSES OF THE OFFERING
The following table sets
forth the expenses payable by us in connection with the sale and distribution of the securities being registered hereby. All amounts shown,
other than the SEC registration fee, are estimates:
| SEC registration fee |
$ |
936 |
| Printing and engraving |
|
5,000 |
| Accounting services |
|
15,000 |
| Legal fees and expenses |
|
50,000 |
| Miscellaneous |
|
5,000 |
| Total |
$ |
75,936 |
LEGAL MATTERS
Certain legal matters in connection
with the validity of the securities offered hereby will passed upon for us by Brown Rudnick LLP, London, United Kingdom. Certain other
matters of U.S. federal law will be passed upon for us by Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Boston, Massachusetts
EXPERTS
The financial statements of
Biodexa Pharmaceuticals PLC as of December 31, 2023, and for the each of the three years in the period then ended, included in this prospectus
and in the registration statement have been so included in reliance on a report of Forvis Mazars LLP (then-named Mazars LLP), an independent
registered public accounting firm, given on authority of said firm as experts in auditing and accounting. The report on
the financial statements for the year ended December 31, 2023, contains an explanatory paragraph in Note 2 regarding our ability
to continue as a going concern.
Forvis Mazars LLP, London,
United Kingdom, is a member of the Institute of Chartered Accountants in England and Wales.
ENFORCEMENT OF CIVIL LIABILITIES
We are incorporated under
the laws of England and Wales. All of our directors and officers of are residents of jurisdictions outside the United States. Our corporate
headquarters is located in the United Kingdom and all or a substantial portion of our assets, and all or a substantial portion of the
assets of our directors and officers, are located outside of the United States. As a result, it may be difficult for you to serve legal
process on us or our directors or have any of them appear in a U.S. court.
We
have appointed Donald J. Puglisi of Puglisi & Associates as our authorized agent upon whom process may be served in any action instituted
in any U.S. federal or state court having subject matter jurisdiction arising out of or based upon the securities offered by this prospectus.
We
understand that in England it may not be possible to bring proceedings or enforce a judgment of a U.S. court in respect of civil liabilities
based solely on the federal securities laws of the United States. In addition, awards of punitive damages in actions brought in the United
States or elsewhere may be unenforceable in England. An award of damages is usually considered to be punitive if it does not seek to compensate
the claimant for loss or damage suffered and is instead intended to punish the defendant. In addition to public policy aspects of enforcement,
such as the aforementioned, the enforceability of any judgment in England will depend on the particular facts of the case and the relevant
circumstances, for example (and expressly without limitation), whether there are any relevant insolvency proceedings which may affect
the ability to enforce a judgment. In addition, the United States and the United Kingdom have not currently entered into a treaty (or
convention) providing for the reciprocal recognition and enforcement of judgments (although both are contracting states to the New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards).
WHERE YOU CAN FIND MORE INFORMATION
We are subject to periodic
reporting and other informational requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, as applicable
to foreign private issuers. Accordingly, we are required to file reports, including annual reports on Form 20-F, and other information
with the SEC. As a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing the furnishing and content of
proxy statements to shareholders under the federal proxy rules contained in Sections 14(a), (b) and (c) of the Exchange Act,
and our “insiders” are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of
the Exchange Act. The SEC maintains an Internet site that contains reports, proxy, information statements and other information regarding
issuers at http://www.sec.gov. Copies of certain information filed by us with the SEC are also available on our website at http://www.biodexapharma.com.
Our website is not a part of this prospectus and is not incorporated by reference in this prospectus.
This prospectus is part of
a registration statement we filed with the SEC. This prospectus omits some information contained in the registration statement in accordance
with SEC rules and regulations. You should review the information and exhibits in the registration statement for further information
on us and our consolidated subsidiaries and the securities we are offering. Statements in this prospectus concerning any document we filed
as an exhibit to the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified
by reference to these filings. You should review the complete document to evaluate these statements. You can obtain a copy of the registration
statement from the SEC at the address listed above or from the SEC’s website.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with the SEC, which means that we can disclose important information to you by referring you
to another document filed separately with the SEC. The information incorporated by reference is an important part of this prospectus.
We incorporate by reference, as of their respective dates of filing, the documents listed below that we have filed with the SEC and any
documents that we file with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus
and prior to the termination of the offering of securities under this prospectus (except in each case the information contained in such
documents to the extent “furnished” and not “filed”):
| · | our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on April
19, 2024; |
| · | our Reports on Form 6-K and any amendments thereto furnished to the SEC on January 22, 2024, February
23, 2024, April 19, 2024, April 26, 2024, April 30, 2024, May 21, 2024, May 22, 2024, May 28, 2024, June 13, 2024, July 2, 2024, July
5, 2024, July 16, 2024, July 19, 2024 and July 23, 2024 that we incorporate by reference into this prospectus; and |
| · | the description of our Ordinary Shares and Depositary Shares contained in our registration statement on
Form 8-A, originally filed with the SEC on December 2, 2015, as amended on April 30, 2021, including any amendments or reports filed for
the purposes of updating such description. |
We are also incorporating
by reference all subsequent Annual Reports on Form 20-F that we file with the SEC and certain reports on Form 6-K that we furnish to the
SEC after the date of this prospectus (if they state that they are incorporated by reference into this prospectus) prior to the termination
of this offering. In all cases, you should rely on the later information over different information included in this prospectus or any
accompanying prospectus supplement.
4,349,102,800
Ordinary Shares Representing 10,872,757 American Depositary Shares
BIODEXA PHARMACEUTICALS
PLC
PROSPECTUS
AUGUST 19, 2024
Midatech Pharma (NASDAQ:MTP)
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De Oct 2024 a Oct 2024
Midatech Pharma (NASDAQ:MTP)
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