MDC (ASX) Ann: EGM Notice of Meeting to Approve Dual Listing to Nasdaq

Originally posted by Apse ↑

@amb005 – "Tentatively” optimistic on the Nasdaq front – I think it’s a market that better understands biotechs like Medlab and the FDA processes, with a market/investor depth that dwarfs the ASX.

You’ve made some good points and I want to look deeper before I respond to some (particularly dilution concerns which I share), but as far as the consolidation goes, I’m pretty sure a Nasdaq listing requires a minimum share price (USD$3-5?) which will make some form of consolidation absolutely necessary to proceed. Like I said, I need to refresh on SEC filing reqs to get a bearing on that.

Consolidation in and of itself doesn’t change our holdings or value – I have no real problem with that resolution, but your examples are valid. Actually after you brought ZLD to my attention, I’ve watched their recent consolidation and subsequent SP fall – point well taken, but I do know MDC can’t Nasdaq list at ~5c AUD.

@silvahman - Spot on, dual listing has done wonders for MXC, and having checked, it was indeed the path that got GW Pharma from a small LSE stock to the Nasdaq and a $7b+ acquisition.

BTW, after looking at that recent NanaBis announcement - the only ARTG listed CBD/THC medicine I can find is Sativex? (GW Pharma, now owned by Jazz). If so, GWP reported Sativex did USD$18.474m global sales in 2021, and it’s not even FDA approved for sale on the US market. More in annual sales than MDC's current MC and NanaBis is looking twice as good.

--I’ve got more digesting to do here, but I agree all of this will take time to unfold. One month notice for the EGM is the ASX minimum req, then shareholder approval, then the actual process of the dual listing. Any final IPO pricing, actual number of shares issued and dilution details will only come when/if the listing actually occurs. I think Medlab are just getting the ball rolling while an offer is on the table.

GLTAH and as always DYOR

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Apse nice post, was waiting for your take after you had a read, you always seem to have a well thought out opinion.

Consolidation is not needed for listing on nasdaq, you will see the IHL price on nasdaq is different to the ASX price of IHL. You can see IHL on ASX is 21 cents, whilst on nasdaq its $9.38. They can do this under an ADR (American Depositary Receipt .)

Really there is no need for a consolidation of the ASX shares, its going to be costly in admin. Its basically just a way for him to sell more of the company to US investors, taking it from ASX holders.

The listing itself is a great move, but that could be done without consolidation and without diluting holders by 60%+ as Sean Hall is going to do here.

Im happy we didnt get dumped on today, the insider selling probably got out of everything they needed to before announced. Will be interesting to see who was getting out which will be confirmed in the updated top 20.

Im not happy with how this has been handled however we are at the mercy of Sean Hall given his percentage holding here, so basically any resolution he puts forward will be passed. Just got to hope we get some hype leading up to nasdaq listing which will be over a year away and possibly use that hype to get out at much higher levels.