Thanks @ Quiltman - your posts are always appreciated :) I...

Thanks @ Quiltman - your posts are always appreciated

I received the same email, and I found the below points particularly interesting:


Question – What happened to the US listing?

The Nasdaq markets, especially IPOs and medical technology companies, performed poorly in the first 3 quarters of 2023. The investment bank leading CardieX’s IPO declined to work with 2 other brokers that were introduced, as they were confident that they could raise the full $10m that CardieX was seeking.

In the final week of the SEC process, following clearance of all SEC comments and gaining Nasdaq approval the investment bank could not raise the required minimum that the Company needed to justify a dual listing.

As a result, CardieX withdrew the US/IPO filings and refocused back on the ASX.


Question – why has the company been in trading suspension since end of September 2023?

In late September, the Company announced that it had withdrawn its Nasdaq IPO and was terminating that capital raising process. The Company then requested a trading halt, followed by a voluntary suspension in order to develop and execute against a capital raising plan to replace the US capital raise. ASX then imposed a suspension for the late filing of the FY23 audited accounts (which were subsequently released in November). Since then, the relisting of the Company has been at the ASX’s discretion, and the Company has been working on the completion of the required capital raise as well as satisfying the ASX relisting conditions.

The Company advised the ASX that as part of its pathway to relist it would provide shareholders and the ASX with FY23 audited accounts, updated capital plans and comprehensive business updates.

Comprehensive updates have been provided (including at the 2023 AGM), the audited accounts released and the “3-part capital raising package” (Placement $4m, Entitlement Offer $4m and C2V Funding Commitment Agreement $6m) raising $14m is announced and underway.

Importantly, the Company believes the capital being raised is sufficient to execute its plan – to deliver profitability and to launch multiple new FDA cleared products and solutions (including the CONNEQT Pulse and Band) over 2024 calendar year.

As announced on 2 January 2024, the ASX has now provided a pathway towards relisting – post a successful Placement and Entitlement Offer.


Question – When will the Company be re-listed?

As announced on 2 January 2024, the ASX has provided a pathway and conditions towards relisting. In effect this is the completion of the successful Placement ($4m), the Entitlement Offer ($4m), and keeping up to date with required disclosures/announcements.

The Entitlement Offer completes on 1 February, which is the same day as the EGM (to approve the Placement), with shares to be issued shortly thereafter (see Timetable). Timing for the ASX (it is at their discretion) to reinstate CardieX trading is expected to follow the EGM and completion of the Placement and Entitlement Offer – in February 2024.

The Capital raised in the “3-part capital raising package” - Placement, Entitlement Offer, and C2V Funding Commitment Agreement – totals $14m, and provides the capital required to move towards profitability in the next 12 months and launch multiple new FDA cleared products and solutions.


Question – The share price has been trending down over the past year, would you say the Company is in a far better position today than it was a year ago? If so, why?

We believe the company is in a better position.

The Company has achieved FDA clearance for the CONNEQT Pulse, increased revenue on Q1 FY24 by 143% (PCP), received $6.2m in cash from the finalisation of the Clinichain clinical trial.

With the 3-part capital raising package totalling $14m from the Placement, Entitlement Offer and C2V Funding Commitment Agreement the Company will have the capital required to execute on its business plan – launch multiple new FDA cleared products and solutions (including the CONNEQT Pulse and CONNEQT Band), significantly grow revenues, and attain profitability.

Thus, Yes the Company is now in a significantly better position than a year ago.


Question – In terms of growth and revenue, what results is the Company hoping for come 2024?

The company delivered Q1, FY24 revenue up 143% and with the completion of the Clinichain clinical trial is likely to have FY24 revenue of c.$10m (up from $4.6m in FY23).