CardieX : proposes to seek secondary listing on US OTCQX Market

CardieX Ltd (ASX:CDX) is proposing a new initiative - to seek a secondary quotation of its fully paid ordinary shares on the US OTCQX Market.

The timing for the OTCQX secondary quotation is anticipated to be upon the completion of meeting the OTCQX criteria, which is likely to be within a month of the company's upcoming extraordinary general meeting (EGM).

CardieX has commenced the application process for the quotation of its shares on the OTCQX.

Meeting listing criteria

A successful application requires certain criteria to be met.

It is expected that this and other criteria will be met in the month or so after the company's EGM to be held on February 16, 2022.

The principal reasons for the planned OTCQX quotation include:

➢ Providing direct access for US strategic and institutional investors to invest in the company through a known US share trading market;

➢ Increase the company's profile ahead of the launch of multiple new FDA-cleared products in the US market and globally;

➢ Increase the potential for a revaluation of the company in line with other comparable wearable and health technology companies in the US such as WHOOP, Oura, Levels, Supersapiens and Fitbit (NYSE:FIT); and

➢ Provide more visibility of its core technology and product ecosystem with strategic partners and investors globally.

Corporate communications plan

As part of the OTCQX listing, the company has appointed leading US investor relations and corporate communications firm Integrous Communications to work with management and the board on US investor relations.

Integrous has provided a detailed first-year corporate communications plan to increase the company's visibility to US investors as well as to guide management on further strategic and financial opportunities.

Proposed share consolidation

CardieX's EGM will allow shareholders to vote on a proposed 10-for-1 consolidation of its fully paid ordinary shares, performance rights and unlisted options.

The directors are of the view that in addition to the rationale detailed in the EGM's explanatory memorandum, a consolidation will benefit shareholders by bringing its number of shares on issue (from around 1.1 billion to about 10 million shares), and its share price, more in line with the company's peer group.

Additionally, the consolidation will ensure that the company's share price is suitable for admission to quotation on OTCQX - which has a US$0.25 minimum share price.

Subject to shareholder approval at the EGM, normal T+2 trading would commence on a consolidated basis on ASX, March 1, 2022.

OTCQX

The OTCQX is the top tier of the three marketplaces for the over-the-counter (OTC) trading of stocks in the US market.

The OTCQX is provided and operated by the OTC Markets Group.

Stocks trading on this platform must meet stringent qualification and reporting criteria.