FRAMINGHAM, Mass. and SYDNEY, June 12, 2013 /PRNewswire/ -- HeartWare International, Inc. (NASDAQ:HTWR - ASX:HIN), today announced that it 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 September 10, 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 September 17, 2013 subject to HeartWare providing a voluntary sale facility through which holders of CDIs may sell their shares of common stock on NASDAQ (as described below) and notifying CDI holders of the availability of the sale facility. HeartWare's common stock will continue to be listed on NASDAQ.
Background on decision to delistHeartWare 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 United States 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% of the total trading volume of HeartWare's securities occurring on NASDAQ and less than 1% of its trading volume occurring on ASX since January 1, 2013. In addition, CDIs now only represent approximately 5% 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. Delisting process 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 which will be available to CDI holders:
- the continued right to sell their CDIs on ASX until trading of CDIs is suspended from the official list of ASX (expected September 10, 2013);
- 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 September 18, 2013 to December 18, 2013);
- the continued right to convert their CDIs into shares of common stock until the end of the Voluntary Sale Facility (expected on or around December 18, 2013); and
- 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 December 19, 2013 and December 27, 2013).
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