G Medical to delist from ASX despite a May promise to stay
Health & Biotech
Health & Biotech
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With its stock plumbing all time lows, G Medical (ASX:GMV) is making good on a promise first made in 2018 to list on the NASDAQ tech exchange in New York.
The medical device company will delist from the ASX in order to list in the US, an event it is “targeting” for the December quarter.
It said in May it had “no plans to delist from the ASX”.
G Medical has been talking about a dual listing in the US and a Hong Kong listing since 2018. The latter, promised for late 2019, has not occurred.
The company appointed an underwriter in October 2018 to manage a US listing, just after doing the same for a HKSE listing of its Chinese subsidiary.
At the time the US move was supposed to take place by early 2019.
Come late 2019 the company was still “set” for a US listing.
Today, G Medical is somewhat further ahead than its previous attempts, having filed a draft prospectus with the US Securities Exchange Commission (SEC) and “attracted interest from major international investors and strategic partners”.
Its stock began trading on over-the-counter (OTC) markets in the US in January.
G Medical finally began making good on a range of deals in January that, in 2017, it said would deliver $US168m ($234m) worth of revenue in their first year of operation.
Progress was stymied by a change in China’s health regulatory system in early 2018 which meant extra approvals were needed to manufacture medical devices in that country.
The company took $US985,000 in cash receipts in the June quarter, down 20 per cent from the prior quarter, burning $2.1m mostly on staff costs and admin fees, up 213 per cent on the March quarter.
G Medical was still struggling for cash at the end of the quarter, as it has since 2017, and raised $5m in August at 5c a share.
The stock closed Friday at 4.3c.
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