Espicom View: After relocating to the US, Heartware seems to be focussing on this market more than the one from which it originated, Australia. With most of its trading volume on the Nasdaq Global Market, it is a wise move for Heartware to save the costs of being on two stock markets. Analysts are calling Heartware a company to watch, after good revenues and well performing stock. The company has incurred net losses since the introduction of the ventricular assist system in 2008, and expects this to continue as it invests in research to expand the pipeline and infrastructure. Heartware is setting itself up for long-term growth by expanding its pipeline, entering new markets and securing growth for its currently approved product.
Heartware has requested and received approval from ASX Limited for its removal from the official list of ASX. Trading in HeartWare's CHESS Depositary Interests (CDIs) will be suspended on ASX at the close of market on 10th September 2013. HeartWare's shares of common stock are currently listed for trading on the Nasdaq Global Select Market (Nasdaq) under the symbol HTWR and HeartWare's CDIs are traded on the ASX under the code HIN. One share of HeartWare common stock is equivalent to 35 CDIs.
ASX has advised that in accordance with the Company's request, it will remove the company from the official list of ASX with effect from the close of trading on 17th September 2013 subject to HeartWare providing a voluntary sale facility through which holders of CDIs may sell their shares of common stock on Nasdaq and notifying CDI holders of the availability of the sale facility. HeartWare's common stock will continue to be listed on Nasdaq.
HeartWare Limited was admitted to the official list of ASX in 2005 and was replaced as the ASX listed entity by HeartWare following its redomiciliation in the US in 2008. Since HeartWare's listing on Nasdaq in 2009, there has been a substantial shift in the trading volume of its securities from ASX to Nasdaq, which has culminated in more than 99 per cent of the total trading volume of HeartWare's securities occurring on Nasdaq and less than 1 per cent of its trading volume occurring on ASX since 1st January 2013. In addition, CDIs now only represent approximately 5 per cent of HeartWare's issued and outstanding capital with the vast majority of its capital being held as common stock traded on Nasdaq. As a result, HeartWare has determined that sustaining the administrative costs of an ASX listing, including the higher level of regulatory compliance costs associated with dual listings, is difficult to justify and, accordingly, has made the decision to delist from ASX.
Prior to suspension of trading in HeartWare's CDIs on ASX, HeartWare will send each CDI holder a letter which will provide an overview of the delisting process, as well as details of the following options that will be available to CDI holders:
â¢ the continued right to sell their CDIs on ASX until trading of CDIs is suspended from the official list of ASX (expected 10th September 2013);
â¢ a Voluntary Sale Facility that will be established by the company to enable CDI holders to sell the shares of common stock underlying their CDIs on Nasdaq for a period of three months following the date of HeartWare's removal from the official list of ASX (expected for the period between 18th September 2013 to 18th December 2013);
â¢ the continued right to convert their CDIs into shares of common stock until the end of the Voluntary Sale Facility (expected on or around 18th December 2013); and
â¢ the compulsory sale of remaining shares of common stock underlying the CDIs during the nine day period following the close of the Voluntary Sale Facility (expected to occur between 19th December 2013 and 27th December 2013).
On the date of the announcement, 12th June 2013, share prices fell by 1.54 per cent closing at US$91.44; however, the following day, 13th June, share prices recovered, closing at US$91.67.
HeartWare develops and manufactures ventricular assist devices to treat Class IIIB/IV patients suffering from advanced heart failure. The HeartWare ventricular assist system features the HVAD (Heartware ventricular assist device) pump, a small full-support circulatory assist device designed to be implanted next to the heart, avoiding the abdominal surgery generally required to implant competing devices. The HeartWare system is approved in the US for the intended use as a bridge to cardiac transplantation in patients who are at risk of death from refractory end-stage left ventricular heart failure, has received CE marking in the EU and has been used to treat patients in 30 international countries. The device is also currently the subject of a US clinical trial for destination therapy.