Rhinomed sniffs out opportunities in North America with new listing
Written on the 12 September 2019 by Business News Australia
Breathing management med-tech business Rhinomed (ASX: RNO) has today listed in the USA on the OTCQB Venture Market.
The company, which develops nasal and respiratory technologies to assist with sleep, sport and wellbeing, and is currently exploring how medicinal cannabis can improve its product range, will trade under the symbol "RHNMF".
In a statement to the ASX the company says the reasoning behind the US listing is to better connect with its growing US investor base.
"With North American investors now owning approximately 35 per cent of the Company's stock the Board determined that a listing on the OTCQB market has the potential to provide a new source of demand for Rhinomed shares and a greater opportunity for North American investors to participate in Rhinomed's growth story," says Rhinomed.
Speaking to Business News Australia CEO Michael Johnson says that over 90 per cent of the company's revenue is now generated in the USA, with its products now on over 9,000 store shelves, as well as being stocked by Amazon.
As such, being able to give access to US investors, particularly retail investors, is a necessary move for the company.
"Clearly there is some demand for our growth story in the US, and if we can facilitate the opportunity for American investors to buy the stock then that is something we need to consider," says Johnson.
No new capital or shares have been issued to facilitate the listing on the OTCQB, meaning the dual listing structure is not dilutive to Rhinomed's existing shareholders.
The OTTCQB market was created in 2010 for early stage and developing US and international companies.
In late September Rhinomed secured a 12-year exclusive licensing agreement of its nasal platform technology with Columbia Care LLC, the largest provider of cannabis-based products and services in the United States.
Initially, the Rhinomed and Columbia Care collaborative product will be distributed via US based cannabis dispensaries.
Rhinomed hopes the products will be able to alleviate problems currently unmet by a number of already available products including obstructive sleep apnoea, PTSD, pain relief, nausea and other sleep-related conditions.
Johnson says that the company hopes to take the eventual collaborative product global, with a focus on retail.
"Where we see the CBD market growing is true retail pharmacy, and we already have the retail presence with many major drug store chains in the US, UK and Canada. We certainly believe that is a distirbution network that we can take full advantage of," says Johnson.
Shares in Rhinomed are down 7.41 per cent to $0.25 per share at 10.22am AEST.
Business News Australia
Author: Business News Australia