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- Regenerative medicine company Avita Medical (AVH) intends to redomicile to America and primarily list on the NASDAQ, but will continue listing on the ASX in a secondary capacity
- Through the proposed scheme, Avita’s U.S.-based Therapeutics company would become the holding body of Avita Medical and its subsidiaries
- As a result, the company’s ASX shares would be exchanged for CHESS depositary interests in the company’s U.S.-based NASDAQ shares
- Before commencing the move, the company is seeking regulatory approvals and has commissioned an independent expert to investigate whether re-domiciliation is the best move for the company
- AVITA Medical shares are 10.1 per cent lower today, trading for 44.5 cents per share
Regenerative medicine company Avita Medical (AVH) intends to redomicile to America and primarily list on the NASDAQ but will continue listing on the ASX.
The company currently lists primarily on the ASX, with a secondary listing on the NASDAQ. However, through a proposed scheme with the newly created U.S.-based Avita Therapeutics, Inc, the company would flip these listing and primarily list in the U.S.
Avita Medical Limited would then be assumed into the U.S.-based Avita Therapeutics, with the latter company becoming the holding company for all Avita’s subsidiaries.
As a result, shareholders in Australia would exchange their shares for the previously listed U.S. shares, and vis versa.
The way this will work is two-fold. Once AVITA Medical is redomiciled, it will be issued U.S.-based shares and withdraw its ASX shares. In tandem, all eligible ASX shareholder will then receive five CHESS depositary interests in AVITA’s U.S.-based shares for every 100 previously owned shares.
CHESS depositary interests are a type of ASX security that allows international companies to trade on Australia’s local market.
By re-domiciling in the U.S., the company hopes to significantly reduce the cost burden of reporting directly to two separate exchanges. By simplifying that process, the company estimates it could save up to $400,000 a year in professional costs.
Furthermore, AVITA recently pivoted its direction to focus on developing new treatments for burns and believes the NASDAQ is the largest market for that industry sector.
However, the company urged that the re-domiciliation is not intended to substantially change the company’s operations moving forward.
The company’s board has tentatively approved the decision, but the company is still awaiting a report commissioned by an independent expert, which will[ further outline whether re-domiciliation is the best move for the company.
Before the move can commence, however, the company must seek approvals from The Federal Court of Australia, the Foreign Investment Review Board, NASDAQ’s governing body and Avita’s ASX shareholders.
AVITA Medical shares are 10.1 per cent lower today, trading for 44.5 cents per share at 1:51 pm AEST.
