The days of Incannex Healthcare Ltd (ASX: IHL) shares trading on the ASX boards are now numbered.
That's because this morning, the cannabis-focused clinical-stage pharmaceutical development company has announced plans to redomicile from Australia to the United States.
This will be via proposed schemes of arrangement between Incannex and its shareholders and option holders, subject to their approval, as well as customary regulatory approvals.
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Why are Incannex shares leaving the ASX?
According to the release, the Incannex board believes that becoming a U.S. company and trading only on the NASDAQ will provide many and varied benefits to Incannex and its shareholders.
It believes that the company will have greater access to a more cognisant and receptive capital market of Incannex's value proposition. The board also highlights that comparison companies are trading at far greater market valuations and switching would provide it with the ability to expand to a much broader investor base.
Incannex CEO and Managing Director, Joel Latham, said:
The Board is excited to enact this landmark unanimous decision in conjunction with our key shareholders and other stakeholders. It is a decision made with the intention to maximise shareholder value.
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 United States, 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.
What's next?
The company expects to allow shareholders to vote on the proposal at a meeting in October.
If the proposal is approved, holders of Incannex shares will be entitled to receive one share of common stock in Incannex US for every 100 shares held on the record date for the share scheme. The value of the holding would remain the same at conversion.
Incannex shares are down 40% since this time last year.
