Regenerative medicine company AVITA Medical (ASX:AVH) has announced its intention to redomicile from Australia to the US.
The company said it has entered a Scheme Implementation Agreement with AVITA Therapeutics, Inc (Avita US), which is a newly-formed company incorporated in the US state of Delaware.
The redomiciliation will see shareholders effectively exchange their shares in the company for equivalent securities in Avita US. The existing listing of the company on the Australian Securities Exchange and on the NASDAQ Stock Market will be inverted and replaced with a new listing of Avita US on NASDAQ (as its future primary listing) and on the ASX (as its future secondary listing).
The redomiciliation is subject to regulatory and court approvals as well as approval by the company’s shareholders at an extraordinary general meeting.
The company said its directors "are of the unanimous view" the advantages of the redomiciliation materially outweigh its disadvantages and risks.
It said the directors believe it will substantially reduce the costs, burden, resourcing and risks associated with dual financial reporting and related compliance obligations. It expects to save $400,000 annually in external professional costs alone. A 'local' share listing on the NASDAQ exchange in the US will also support its visibility to investors and growth in the world's largest market for the treatment for burns.
"The Company derives virtually all of its revenue from the United States, has no physical presence outside of the United States, and a significant majority of its issued share capital (taking into account its American Depositary Shares (ADSs), which are traded exclusively on NASDAQ) is currently held by investors in the United States," said the company in a statement.