Phosphagenics establishes American Depositary Receipt program

By E. Janene Geiss

Philadelphia, March 27 - Phosphagenics Ltd. said it has established a Level 1 American Depositary Receipt program in the United States.

The Bank of New York will be the depositary bank to administer the ADR program, according to a company news release.

The ADRs will trade in the U.S. over-the-counter market, officials said.

Each ADR will represent 30 Phosphagenics ordinary shares. Phosphagenics ordinary shares will continue to trade on the Australian Stock Exchange and AIM markets, officials said.

"It is part of our long-term strategy to expand our presence in the U.S. The ADR program will help us to increase our visibility in the U.S. pharmaceutical and nutraceutical markets and enhance the trading options for existing and potential new investors," Harry Rosen, chief executive officer of Phosphagenics, said in the release.

ADRs are commonly used to facilitate the holding and trading by U.S. investors of stocks in foreign companies not listed in the United States.

An ADR is created when a broker purchases a company's shares on the home stock market and delivers those to the depository's local custodian bank, which then instructs the depositary bank, in this case The Bank of New York, to issue depositary receipts. ADRs are traded in the same manner as ordinary shares, officials said.

Phosphagenics is a Melbourne, Australia, pharmaceutical and nutraceutical company with a diversified portfolio of technologies encompassing drug delivery, drug enhancement and active ingredients for dietary supplements, functional foods and personal care products.

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