Home Product listing Cardiex Ltd offers to apply for a secondary listing on the US OTCQX market

Cardiex Ltd offers to apply for a secondary listing on the US OTCQX market

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CardieX has begun the process of applying for a listing of its shares on the OTCQX.

CardieX Ltd (ASX:CDX) is offering a new initiative: to seek a secondary listing of its fully paid ordinary shares on the US OTCQX market.

The timing of the OTCQX secondary listing is expected to be once the OTCQX criteria are met, which is expected to occur within one month of the company’s next Extraordinary General Meeting (EGM).

CardieX has begun the process of applying for a listing of its shares on the OTCQX.

Meet the registration criteria

A successful application requires certain criteria to be met.

It is expected that this and other criteria will be met in the month following the company’s EGM to be held on February 16, 2022.

The main reasons for the planned OTCQX listing include:

➢ Provide direct access to US strategic and institutional investors to invest in the company through a known US stock market;

➢ Raise the profile of the company before the launch of several new FDA-approved products in the US market and worldwide;

➢ Increase the company’s revaluation potential in line with other comparable wearable technology and health companies in the United States such as WHOOP, Oura, Levels, Supersapiens and Fitbit (NYSE: FIT); and

➢ Provide greater visibility of its core technology and product ecosystem to strategic partners and investors globally.

Corporate communication plan

As part of the OTCQX listing, the company has appointed Integrous Communications, a U.S. investor relations and corporate communications firm, to work with management and the board on investor relations. American investors.

Integrous provided a detailed first-year corporate communications plan to increase the company’s visibility with US investors and guide management on other strategic and financial opportunities.

Proposed reverse stock split

CardieX’s EGM will allow shareholders to vote on a proposed 10-for-1 consolidation of its fully paid ordinary shares, performance rights and unlisted options.

The directors are of the opinion that beyond the logic detailed in the explanatory memorandum to the EGM, a consolidation will benefit shareholders by reducing the number of shares issued (from around 1.1 billion to around 10 million shares) and share price, more in line with the company’s peer group.

In addition, the consolidation will ensure that the company’s share price is suitable for listing on the OTCQX – which has a minimum share price of $0.25.

Subject to shareholder approval at the EGM, normal T+2 trading would begin on a consolidated basis on the ASX on March 1, 2022.

OTCQX

The OTCQX is the top tier of the three markets for over-the-counter (OTC) stock trading in the US market.

OTCQX is provided and operated by the OTC Markets Group.

Stocks traded on this platform must meet strict qualification and reporting criteria.