ASX-listed Incannex Healthcare (IHL) has unveiled plans to shift its domicile to the United States and move all of its shares to the Nasdaq exchange.
A newly incorporated Delaware company — Incannex Healthcare Inc — will take over as the group's ultimate parent following the completion of a scheme arrangement conducted under Australian law.
Common stock issued by Incannex Healthcare Inc, in exchange for all existing ordinary shares in Incannex, will trade on the Nasdaq upon implementation of the scheme.
Incannex said the transition would give the company better access to a capital market "more cognisant of IHL's value proposition with peer comparison companies trading at significantly higher market valuations".
The board said the move would also broaden access to large pools of lower-cost equity capital over the long term, strengthen alignment with major pharmaceutical companies, simplify the corporate structure ahead of any potential mergers or acquisitions, and improve access to US Food and Drug Administration resources.
The company clarified that the relocation was not designed to coincide with a capital raise, given it holds A$33 million in cash reserves as at June 30, 2023.
CEO Joel Latham added: "Incannex has matured on the ASX to the point that it has a large and diversified drug portfolio with two exciting drug candidates imminently entering pivotal clinical trials.
"By committing our presence to the US, we believe that our company's visibility to international investors will increase markedly, partly due to our value proposition compared to similar emerging biotech companies with a presence in North America.
"Having all Incannex shares trading on Nasdaq will facilitate a cohesive single market with the appropriate level of liquidity expected by the US investment banks."
Incannex develops medicinal cannabis pharmaceutical products and psychedelic medicines targeting conditions that include obstructive sleep apnoea, traumatic brain injury and concussion, lung inflammation, rheumatoid arthritis, anxiety, and pain. The company currently trades on the ASX and has American Depositary Shares listed on the Nasdaq.
Shareholders and option holders will be invited to vote on the proposal in October.