Why the Incannex (ASX:IHL) share price is soaring 13%

The Incannex share price is soaring today as the company mulls a US listing. We take a closer look at its release.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Incannex Healthcare Ltd (ASX: IHL) share price is soaring today as the company announced that it is mulling a US listing. Shares in the small-cap health care stock are currently trading 12.82% higher as a result. This has held Incannex shares to rise to a price of 22 cents.

Why is the Incannex share price flying?

Today the Incannex share price is trading strongly higher. This comes as the company announced that it is intending to list on the US market. The company has executed a binding consulting agreement with EAS Advisors to facilitate the listing.

Incannex noted that the predominant purpose of the arrangement was for EAS to introduce it to US banks and institutions. With the aim of dual listing the company on either the Nasdaq Composite (INDEXNASDAQ: .IXIC) or the NYSE Composite (INDEXNYSEGIS: NYA). While also retaining its listing on the ASX.

It is worth noting that the term of the agreement is 12 months. EAS will be paid both with Incannex options and a standard retainer. The advisory firm is also going to assist with financial modelling, presentation preparation, and external data room maintenance. This will be on top of generating global investor awareness.

Management Comments

CEO and Managing Director of Incannex Healthcare, Joel Latham, welcomed the news by saying:

After several months of getting to know one another, Eddie and EAS have joined our broader team to evaluate opportunities to list IHL securities in the United States on one of the main markets. We have made this decision because of deep investor interest and corporate activity in both cannabinoid-based pharmaceuticals and psychedelic therapeutic endeavours in North America. We're delighted to be working with the team at EAS, which has an excellent track record of growing international awareness for ASX companies.

About the Incannex share price

The Incannex share price has performed well as of late as it recently released positive drug results.

In the last month alone, its shares are up a whopping 37.5%, easily outpacing the All Ordinaries Index (ASX: XAO). Incannex is currently valued at $229.24 million.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

These shares are ending the week in the red. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

Woman and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Catapult, Champion Iron, Healthco, and Meeka Metals shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Miner looking at a tablet.
Broker Notes

Why Macquarie expects this ASX 200 copper stock to surge 36% in a year

Macquarie forecasts some hefty gains ahead for the ASX 200 copper miner. But why?

Read more »

two women celebrating good news on phone
Broker Notes

Top broker names 3 ASX All Ords stocks with between 30% and 77% upside

These 3 stocks offer compelling potential upside.

Read more »

Woman on her phone with diagrams of tech sector related elements linking with each other.
Broker Notes

A leading fund manager is buying these ASX 200 tech shares

Let's see why the fund manager has these shares in its focus portfolio.

Read more »