Mobile and e-health company G Medical Innovations Holdings Ltd. withdrew its $17.3 million IPO on Nasdaq and plans to list on the OTCQB instead.
Cayman Islands-based G Medical said the Nasdaq listing was not in the best interest of its shareholders, citing delays, potential dilution from a related capital raising, along with the current market conditions and pricing expectations.
The company believes trading on the OTC market will expose G Medical to the same individual and institutional investors as Nasdaq. An OTC listing will be non-dilutive to existing shareholders since there is no need for capital raising and issuance of new shares on the exchange, the company added.
G Medical noted that cancelling its Nasdaq IPO was not the result of any material change within the company's operations. Additionally, the company's shares will remain listed on the Australian Securities Exchange and will be dual listed on OTC following U.S. IPO completion.
The company expects to file the prospectus for its OTC listing in the coming weeks.
