The Incannex share price is soaring today as the company mulls a US listing. We take a closer look at its release.
The post Why the Incannex (ASX:IHL) share price is soaring 13% appeared first on The Motley Fool Australia. –
The Incannex Healthcare Ltd (ASX: IHL) share price is soaring today as the company announced that it is mulling a US listing. Shares in the small-cap health care stock are currently trading 12.82% higher as a result. This has held Incannex shares to rise to a price of 22 cents.
Why is the Incannex share price flying?
Today the Incannex share price is trading strongly higher. This comes as the company announced that it is intending to list on the US market. The company has executed a binding consulting agreement with EAS Advisors to facilitate the listing.
Incannex noted that the predominant purpose of the arrangement was for EAS to introduce it to US banks and institutions. With the aim of dual listing the company on either the Nasdaq Composite (INDEXNASDAQ: .IXIC) or the NYSE Composite (INDEXNYSEGIS: NYA). While also retaining its listing on the ASX.
It is worth noting that the term of the agreement is 12 months. EAS will be paid both with Incannex options and a standard retainer. The advisory firm is also going to assist with financial modelling, presentation preparation, and external data room maintenance. This will be on top of generating global investor awareness.
CEO and Managing Director of Incannex Healthcare, Joel Latham, welcomed the news by saying:
After several months of getting to know one another, Eddie and EAS have joined our broader team to evaluate opportunities to list IHL securities in the United States on one of the main markets. We have made this decision because of deep investor interest and corporate activity in both cannabinoid-based pharmaceuticals and psychedelic therapeutic endeavours in North America. We’re delighted to be working with the team at EAS, which has an excellent track record of growing international awareness for ASX companies.
About the Incannex share price
The Incannex share price has performed well as of late as it recently released positive drug results.
In the last month alone, its shares are up a whopping 37.5%, easily outpacing the All Ordinaries Index (ASX: XAO). Incannex is currently valued at $229.24 million.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.