Despite the standard disclaimer about no certainty that is always contained in the announcements, definitive steps towards listing the ADRs on NASDAQ certainly appear to be underway. The latest 4E (Preliminary Final Report) confirms the company applied for listing on 2nd August 2019, which is an advance on the previous information that a draft registration statement had been submitted on 9th July 2019. This process seems to be progressing reasonably quickly.
Will a NASDAQ listing be a value creating milestone? Apparently so according to Avita; refer slide 34 of the 7th August Investor Presentation, where it is listed as the first / next value milestone for this financial year.
I'm no expert in these matters, but one would imagine that listing on NASDAQ will open up Avita to investment by many US investment funds who see the potential for the company and are ready and waiting to invest, but simply do not have a mandate to delve down into the OTC market.
It is highly likely that Avita is already on the radar of some such US funds. We know from shareholder notices and the Investor Presentation (slide 39) that two or three smaller funds (Redmile, Karst, Montgomery(AU) ) have taken positions recently, or are currently building positions. In my opinion the nature of trading over the past 7-10 days indicates another round of steady fund-like buying has been happening, perhaps getting themselves set before the stock is opened up to a broader investment community via NASDAQ
I held another stock through a NASDAQ listing a few years ago. It's price rocketed at the time. Of course, ultimately, the underlying performance has to be there to build the value, but I am reasonably happy with Avita management's strategy and execution at this stage (even if I was not so happy with the free options that were issued 2 years ago). It has taken a significant investment but I think going hard and fast into the burn centres from the time of FDA approval of Recell was the right move.
Hopefully onwards and upwards as this unfolds. It looks like a range of investment funds and us will be in it together.
NASDAQ listing imminent
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Last
$2.80 |
Change
-0.150(5.08%) |
Mkt cap ! $168.5M | |||
| Open | High | Low | Value | Volume |
| $2.86 | $2.88 | $2.78 | $2.017M | 714.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 12250 | $2.80 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.81 | 500 | 1 |
View Market Depth
| Last trade - 16.10pm 19/04/2024 (20 minute delay) ? |
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Last
$2.81 |
Change
-0.150 ( 4.50 %) |
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| Open | High | Low | Volume | ||
| $2.81 | $2.88 | $2.78 | 26446 | ||
| Last updated 15.59pm 19/04/2024 ? | |||||
| AVH (ASX) Chart |