LiquidityFew can argue the point that in general a share price will suffer from lack of liquidity...
i.e share price drifts downward with little liquidity/volume (and/or according to some. it is more easility manipulated downward by nefarious forces or by parties with a simple greed motivation)
share price easily rises with increasing demand/ liquidity...(just monitor level 2 to get an idea)
shareprice does not currently reflect value of the sum of its parts (PMX & Dialco)...(IMHO e.g. - just look at CTSO, Outset)
Co would like to spin off Dialco to create shareholder value (or so claimed as one possibility).
A partial spin-off will assign value to one major piece and likely highlight a misvaluation in the market.)
Co. would like to eventually list on Nasdaq (or so claimed)....(as claimed for 3 plus years now, when the mechanics & costs are not that onerous)
US appetite for Biotechs is far larger than Cdn appetite (more than just a population multiple)
Rememberiing demand increases liquidity. And Liquidity increases SP. And a higher SP lowers the cost of capital and reduces future dilution.
$ will eventually be needed eventually to launch DIMI (or to set up in anticipation of commercialization e.g trained Sales force etc.).....
$ raised are a function of sp (the lower the SP the more shares need to be created, and the more dilution)....co's use their share price as currency. A company demonstating/highlighting its future potential raises more $ more with fewer shares.
and so, remembering the more liquidy, the higher the SP....
IF money is eventually (soon?) needed to be raised to "introduce" or "prep" DIMI (and SAMI for that matter) for eventual commercialization....
And the market is (will be) primarily US centered....
And market/technological innovation creates demand...
And demand increases liquidity...
Why not proceed to a US listing?....
Required: some marketing, US analysts to tell the story (enticed by future IPO perhaps), a more serous dog & pony show, more social media presence, market maker. All at relatively low cost.
This allows for: more liquidity, more volume, more value discovery, less dilution, less manipulation, lower cost of capital, happier shareholders, faster market uptake once FDA has provided a stamp of approval (2022?), more lives saved quicker once approved, more medical costs saved, better outcomes for patients, more hope (e.g those with long Covid, LT organ damage, AKI, etc.).
Oh and the advantage of proceeding (to a US listing) has to be measured against another risk/disadvantage of waiting (too long)....i.e. the placement of the last piece of the puzzle such as an FDA gold stamp on each and every last product that will eventually be marketed.
A severe general market correction (called for by many smart peeps) MAY change the ability to raise $ for several years. How long will favourable IPO, good to great Biotech market conditions last?
Bottom-line question?
What is the downside to proceeding to a higher US market ? I'm talking about now, well before every last piece of the puzzle is in place...as seemingly is done by the vast majority of companies that HOPE to have a product that the US will eventually need (e.g Phase 1 Trial co's).....especially those that need to create liquidity, raise $ to commercialize their products and drive future sales?
I don't see the downside.
Maybe I'm blind
MM