Shareholders in Incannex Healthcare (ASX: IHL) (NASDAQ: IXHL) have voted overwhelmingly in favour of a scheme to redomicile the company’s headquarters to the US.
Approximately 99.64% of shareholders and 99.93% of optionholders have given their nod of approval to the proposal which will see Incannex US acquire 100% of issued Incannex shares to become the group’s new parent entity.
Of a total 464 shareholders who had voted by 18 October, 433 of them (representing approximately 788 million shares) voted in favour, or provided discretion to the company to vote in favour, of the scheme.
A total 16 shareholders representing 2.4 million shares voted against the idea.
Of a total 217 optionholders who voted by 18 October, 209 (representing approximately 124 million options) voted in favour, or provided discretion to the company to vote in favour, while four of them (representing 53,336 options) voted against.
Incannex directors have unanimously voted in favour of the scheme so the company may redomicile to the US and have all of its shares trade exclusively on the Nasdaq securities exchange.
Incannex said it would facilitate a seamless transition to the Nasdaq and intends to engage an international share registry to provide share transactional services to shareholders.
Lower-cost equity markets
In July, Incannex announced its proposal to re-home the Incannex Group to the US for access to lower-cost equity capital in markets which are larger and more diverse than those in Australia, enabling its future growth to be financed at a lower cost.
The move is expected to provide increased alignment with prominent pharmaceutical companies listed on the Nasdaq and enhance the group’s visibility and reputation within the industry, making it more attractive to potential investors and strategic partners.
It will also offer Incannex an enhanced regulatory pathway for its pharmaceutical products through direct access to US Food and Drug Administration (FDA) resources, guidance and expertise.
US market reception
Managing director Joel Latham said the company had elected to switch to the Nasdaq board as it believes the US market reception is strong for pharmaceutical programs.
“By committing our presence to the US, we believe 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,” he said.