- AVITA Medical (AVH) has received approval from the Federal Court of Australia for a scheme of arrangement to redomicile
- The company intends to redomicile itself and its subsidiaries from Australia to the U.S.
- Under the scheme, AVITA Therapeutics in the U.S. will become the Avita Group’s parent company
- The company’s shares will be suspended from trading on the ASX from close of trading on June 23, 2020
- AVITA Medical shares are 3.33 per cent in the red in early trade, priced at 43.5 cents each
AVITA Medical (AVH) has received approval from the Federal Court of Australia for a scheme of arrangement to redomicile.
The company intends to redomicile itself and its subsidiaries (Avita Group) from Australia to the U.S.
Under the scheme of arrangement, AVITA Therapeutics (Avita US) will become the parent company of Avita Group. Avita US is currently incorporated in the U.S. state of Delaware.
The company first announced its intention to redomicile on April 21, 2020. In the announcement, AVITA stated that it would list primarily on the Nasdaq, but would continue listing on the ASX in a secondary capacity.
The company partly attributed the move to an organisational change in direction. AVITA recently started focusing on developing new ways to treat burn injuries. The company believed that the Nasdaq would provide a larger market for that specific industry sector.
AVITA also estimated that redomiciling to the U.S. would save up to $400,000 a year in professional costs. Much of these costs were the result of having to report directly to two separate exchanges.
With the Court’s approval now in hand, AVITA can move forward with its plan to move to the U.S.
On June 23, 2020, the company plans to lodge a copy of the court orders with the Australian Securities and Investments Commission. Once ASIC registers those orders, the approved scheme will take effect.
AVITA’s company shares will be suspended from trading on the ASX, from close of trading on June 23, 2020.
The company’s shares will be exchanged for CHESS depositary Interests (CDI’s) in Avita US’ Nasdaq shares. Specifically, all eligible ASX shareholders will receive five CHESS CDI’s for every 100 previously owned AVITA Medical shares.
The following day, Avita US will list on the Australian Securities Exchange.
After the implementation date, which is slated for June 29, Avita US will also list on the Nasdaq, and commence trading its U.S. shares.
AVITA Medical shares are 3.33 per cent in the red in early trade, priced at 43.5 cents each at 10:54 am AEST.