Incannex Healthcare Files for US IPO Sending the Shares 4% Higher (ASX:IHL)
Local pot stock Incannex Healthcare Ltd [ASX:IHL] is in traders’ sights today. The stock shares is currently up 4.36% and climbing.
As for the catalyst behind this recent surge, well it has to do with Incannex’s plans to head to the US. Noting that management has officially filed a statement for a potential IPO in the US.
Let’s see what this landmark move entails…
A big move with big ambition
This morning, Incannex has confirmed that its F-1 paperwork has been filed with the SEC. A registration of their intent to seek a public offering on the NASDAQ.
For context, this is basically the US version of a prospectus. An important document that outlines the proposed offer, as well as any and all obligations of the business entity in question.
So, let’s talk details.
If the proposal is approved, then Incannex will list on the NASDAQ under the ticker IXHL, utilising American Depositary Shares (ADS’) to raise capital from US investors. With each of these ADS’ being the equivalent of 50 ordinary Incannex shares.
As for how many and how much these shares will trade for, no decision has been finalised. Meaning the important final figures will be subject to market conditions.
Needless to say, it is a big decision to make.
One that will still require final approval from shareholders before Incannex commits to it. And even then, it will require the company to pass through all the regulatory and administrative hoops.
But if they succeed, then it could be a huge driver for further growth. Giving the company access to a far more developed and open market for medicinal cannabis in the US. Something that investors are clearly excited by, given the share price movement today.
It’s simply a matter of how management plans to execute this plan now.
What’s next for the Incannex Share Price?
Going down this IPO route is bound to be a time-consuming affair. Because like I said, Incannex still needs to secure shareholder approval, let alone all the other paperwork.
Therefore, investors may need to prepare for a lengthy process ahead of them. But one that will hopefully be worth it in the long run.
No doubt we will see and hear from management as things progress.
At the very least though, they’ve taken the first step toward this ambitious goal.
Indeed, it is for this reason that Incannex may be one ASX pot stock to watch. But it certainly isn’t the only one.
In our latest sector report ‘Three ASX Pot Stocks That Could Soar in 2021’, we break down and analyse what this revived industry has to offer. With the potential for investors to capitalise upon a steady comeback in the cannabis space.
For all the details, including the names of these three stocks, access the full report right here.
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here