BrainCool’s CEO on the listing announcement from Nasdaq
BrainCool has received conditional approval for admission to trading on the Nasdaq First North Growth Market. Talking to BioStock, CEO Martin Waleij says that only formalities remain for the list change to be carried out according to plan at the end of March 2023.
Medtech company BrainCool has come one step closer to a list change from Spotlight Stock Market to Nasdaq First North Growth Market. For a long time, the company has had its sights set on changing trading venue, primarily with the aim of being able to attract international capital more easily. BrainCool, headed by CEO Martin Waleij, believes that a list change could open up more financing opportunities, broaden the ownership base and in the long run benefit the shareholders.
Comments from the CEO
On March 13, 2023, BrainCool received a conditional approval for admission to trading on First North. CEO Martin Waleij tells BioStock what these terms include and mean.
Martin, Nasdaq has set some specific requirements for an admission to trading on First North Growth Market to be approved. Can you elaborate on what these requirements mean?
– To begin with, I would like to point out that I believe that we already meet all the requirements of Nasdaq and have undergone their review process of the memorandum in connection with the list change, legal due diligence, and a forecast for 15 months that shows that working capital is secured.
– The reason for the terms is about the administrative process that is now taking place between Spotlight and Nasdaq for the transfer. We have therefore terminated the agreement with Spotlight.
– Once the first day of trading is established, the memorandum will be published, which is already reviewed and approved by Nasdaq.
– We meet the requirement of the number of shareholders, but formally, when the first day of trading is set, the current list of shareholders and a certificate based on this list is produced.
– Another requirement is that we, no later than two days before the first day of trading, update our website in accordance with First North’s regulations. This means, among other things, that there must be dedicated departments for regulatory press releases and corporate governance issues. Press releases should be available for the last 5 years. Our available press releases stretch back to 2014, before the then imminent listing on Aktietorget. In addition, other relevant information, such as details regarding the Board of Directors and management, shall be disclosed. Only minor details remain to be updated and these will be completed close to the first day of trading.
– Finally, it is required that no substantial changes occur in the company before the first day of trading that could lead to a different assessment from First North.
What remains for BrainCool to fulfil before the list change can take place?
– At the moment, as I see it, the process lies primarily in the actual transfer of data from the current trading platform, and that is not something we can influence. The timetable remains unchanged, i.e. that the list change can be completed by the end of March 2023. It is also worth pointing out that BrainCool’s shareholders do not need to take any action in connection with the planned list change.
– We meet the formal requirements for listing on Nasdaq. A connection memorandum, which will be published in connection with the list change, has already been approved and we meet the requirement for a working capital budget for at least 15 months. Had this been an IPO and not a list change, I assess that the first day of trading could have been 2-3 days away.
What does the list change mean for BrainCool?
– It will be very positive for BrainCool as it increases awareness of the company and gives us greater access to the Swedish and international capital markets. It is also positive for shareholders in the long run as it facilitates our future development and expansion plans.
– We have turned the page in the company’s history to become a significant player in the market for medical cooling and Targeted Temperature Management for several diseases where today’s alternatives are not effective enough. The list change is a natural step in the same direction.The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.