Article by New Cannabis Ventures
London, UK, October 19 2016: GW Pharmaceuticals plc (Nasdaq: GWPH, AIM: GWP, “GW” or “the Company”), a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform, today announced the Company’s intention to cancel the admission of its 0.1 pence ordinary shares (Ordinary Shares) to trading on AIM on 5 December, 2016. The last day of trading on AIM will be 2 December, 2016. GW will retain its U.S. listing on the NASDAQ Stock Exchange of American Depositary Receipts (ADRs) under ticker symbol GWPH. Existing holders of ADRs do not need to take any action as a result of this announcement.
At the date of this announcement, 78 percent of GW’s Ordinary Shares are held in ADR form and tradeable on the NASDAQ market with approximately 94 percent of trading in the last six months taking place on the NASDAQ market. All shareholders who have not already converted their Ordinary Shares into ADRs are able to do so at any time. Following cancellation of the AIM listing, shares will only be tradeable on the NASDAQ market in the United States.
Following the cancellation of the AIM listing, GW will continue to be headquartered and domiciled in the UK, will continue to comply fully with the requirements of the Companies Act, will be subject to the UK Takeover Code, and will be subject to UK corporation tax. GW currently has 420 employees in the UK and expects this number to continue to increase as it prepares for global regulatory submissions and approvals of Epidiolex, its investigational product for the treatment of a number of rare childhood-onset epilepsy disorders, as well as advance its cannabinoid product pipeline.
Having been listed on the AIM market of the London Stock exchange since 2001, GW completed a successful Initial Public Offering (IPO) on the NASDAQ Global exchange in May 2013, with the result that a dual listing was achieved. The liquidity of trading of GW’s shares was immediately enhanced by the NASDAQ listing and demand from U.S. investors following material corporate progress has led to share price growth and rapid increase in the proportion of GW’s shares that are held through NASDAQ.
GW believes that this trend is likely to continue, leading to a further reduction in the proportion of shares held and traded through AIM. The Company expects that continuation of the decline in proportion of shares held and traded through AIM is likely to lead to a decrease in the liquidity of AIM trading and that it would be advantageous for all GW shareholders to combine trading volumes from both markets onto a single exchange in one time zone.