Incannex lodged extensive registration form with SEC. A strategic dual-listing will give Incannex access to larger pools of capital with investors who are experienced in psychedelics and medicinal cannabis.

For Incannex Healthcare (ASX:IHL), the US represents a major market for its multi-channel development strategy.

And in line with that strategic focus, the company has previously flagged its intention to explore a US listing, after receiving significant interest and positive feedback from US investors.

This week, the company’s management team confirmed its execution on that strategy with thefiling of its Form F-1 registration statement with US regulators.

The Form F-1 is an “extensive and important disclosure document that the SEC requires prior to granting approval to list in the United States”, Incannex said.

In structuring its application, IHL filed for a US public offering of American Depositary Shares (ADSs), each of which will represent 50 ordinary shares in the company.

Incannex also confirmed that the ADSs would be listed on the US Nasdaq exchange under the ticker IXHL, which has already been reserved for the company.

 

Major market opportunity

In comments to Stockhead, Incannex highlighted the strategic rationale for the US listing, which initially will provide greater access to a larger pool of global investors.

The US is also a market that has a higher degree of familiarity with companies developing clinically backed solutions in medicinal cannabis and psychedelic therapies.

Some listed development companies in the US market have already attracted valuations of US$1bn or more seemingly when they have plans aimed at pursuing FDA registration for their products.

In addition, “valuations for credible psychedelic projects are highly favourable in the US”, the company said.

It flagged the example of US company Mindmed, which is running a clinical development program for the use of LSD in treating anxiety.

Mindmed received its pre-IND feedback from the FDA in December last year, and has achieved a valuation of more than $US1bn.

In comparison, IHL is pursuing the use of psilocybin for anxiety (generalised anxiety disorder, which is a severe form of anxiety) and is expecting pre-IND feedback by the end of this year, which puts the company’s project on a similar development path to Mindmed.

 

Advisory team

Along with the opportunities provided by deeper capital markets and more knowledgeable investors, Incannex has also commissioned an experienced advisory team to lead its listing plans.

The company has appointed Roth Capital Partners as the sole book runner for the Nasdaq IPO.

Roth Capital has a track record of bringing Australian companies to US capital markets, working on the dual-listings for lithium stocks Lake Resources and Piedmont Resources, as well as fellow biotech company Imugene.

Roth Capital was the lead placement partner for Imugene’s December 2019 listing at 3.6c, and the stock is now trading near 30c.

Taken in summary, IHL’s US listing plans are the latest exciting development for the company as it builds out a market-leading development pipeline.

“We look forward to the opportunity to open our company’s operations up to a global audience of investors, with deeper pools of capital and extensive experience in psychedelic therapies and medicinal cannabinoid biotech companies,” Incannex said.

This article was developed in collaboration with Incannex Healthcare, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.