iQnovate prepares for intended redomicile and Nasdaq listing
In yesterday’s market announcement, iQnovate Ltd (IQN) intends to redomicile in the US, in preparation for an intended listing on Nasdaq. The redomicile is being carried out via a scheme of arrangement between IQN and The iQ Group Global Inc (TIGG).
“After seven years of significant growth in Australia, IQN has acquired, developed and de-risked significant life science assets, mitigated corporate start-up risk, refined and globalized its business model and built a valuable global network of bioscience professionals” said IQN Chief Executive Officer and Chairman Dr George Syrmalis.
Dr Syrmalis further commented that “These milestones have now triggered the realization of our mid-term group strategy, which mandates corporate consolidation and relocation to the US, the home of the global bioscience industry”.
NASDAQ is known as a tech-heavy exchange for growth-oriented companies, as of June 2018, there are over 3,300 companies listed on Nasdaq with a total market cap over USD10trillion. In 2017, there were 108 IPOs on Nasdaq with total capital raised USD10.3bn. 
While in Australia, although the capital markets are favourable to biotech, both the size and the valuation are limited. In total there are around 2,200 companies listed on ASX with a total market cap over AUD2 trillion.
Dr Syrmalis further commented that “This is the logical next step in our development, where we can showcase our group, our asset, our pipeline, and our people to significant institutional capital and global financial and healthcare centres of influence.”
There were 449 biotech companies listed on Nasdaq with a market cap of USD698.6bn in 2016. As at the end of June 2018, Nasdaq Biotechnology Index (NBI) has achieved approx. 94% as 5-year performance and approx. 348% as 10-year performance.
It is anticipated, that the re-domicile from Australia and NSX to the US and Nasdaq will build a solid foundation for our long-term growth strategy, and enables the value of IQN’s novel life science assets been truly reflected.
“With this transaction (scheme), we create a precedent and set an example, not only for the wider iQ Group ventures, but the entire biotechnology sector in Australia. Success in commercialising great science is not just about the technology, but also about access to purposefully placed capital” concluded Dr Syrmalis.
The Board is currently seeking the necessary shareholder, regulatory and court approvals for the redomicile proposal, full details of which can be found here:
What does it mean for IQN shareholders:
- Your shares of IQN will be exchanged to shares of TIGG. After the scheme, you will be a shareholder of TIGG.
- Your shares of IQN will be exchanged to TIGG shares on a ratio of 35:1. For example, if you hold 35,000 IQN shares before the scheme, and then after the scheme, you will hold 1,000 TIGG shares.
- The percentage of your equity in TIGG will remain the same as your percentage of equity in IQN immediately after the implementation of the scheme. For example, 1% equity in IQN will be exchanged for 1% equity in TIGG immediately after the implementation of the Scheme.
- Subject to the listing of the common stock of TIGG on Nasdaq, IQN will cease to trade on the NSX.
- IQN shareholders do not need to take any action in relation to the Scheme. It is expected that IQN shareholders will receive the scheme booklet in relation to the Scheme in October 2018, which will include a more detailed explanation of the proposed transaction, along with a copy of the independent Expert’s Report.
For further information, please contact:
Investor Relations Team
Phone: +61 2 8239 5400
 Ernst & Young, Global IPO trends: Q1 2018, 2018
 Ernst & Young, Biotechnology Report 2017, Beyond borders staying the course, 2017