Tiziana Life Sciences PLC (LON:TILS, NASDAQ:TLSA) said the demerger of its StemPrintER unit was progressing to plan. 

Back in May, the biotech company said it was looking to spin off its StemPrintER and SPARE genomics-based personalised medicine businesses into a separate company.

This new company will be called AccuStem. 

READ: Tiziana’s diagnostics spinout could be worth $280mln, says Wall Street analyst

Tiziana’s management is currently seeking tax clearances for the proposed spin-off before putting the proposals to shareholders for approval, and said further details will be announced soon.

The London- and New York-listed company added that it has postponed a potential decision on cancellation of the trading of its shares on AIM due to the continuing impact of COVID-19. 

“No final decision on this matter will now be taken until at least Q4 2020,” Tiziana said.

Investment bank JPMorgan will reopen issuances and cancellations of the company’s American Depositary Shares on August 4 after effecting a ratio change to the company’s sponsored Level I American Depositary Receipt (“ADR”) programme.

The former ratio of five ordinary shares to one ADS has been changed to two-to-one and will be effective on July 31 when ADR holders will receive 1.5 additional ADRs for every one ADR held.