Kitov Pharma Ltd said its shareholders approved a 1-for-20 reverse stock split of the company's share capital.

The Israeli drug developer said the split will reduce its share capital to 250 million ordinary shares and 50 million preferred shares.

The move will also reduce the issued and outstanding ordinary shares of the company to about 16 million ordinary shares.

After the stock split, the ordinary shares will start trading on the Tel Aviv Stock Exchange on Jan. 6 and the American depositary shares on the Nasdaq on Jan. 7.