Novogen subsidiary aims to float on Nasdaq

Australian drug developer Novogen's US subsidiary Marshall Edwards has announced plans to float on the Nasdaq exchange, the company said today, with the prospect of raising up to $US13 million before costs associated with the float.

According to Novogen managing director Christopher Naughton, it was a natural move for cancer therapeutics company Marshall Edwards, which listed on London's Alternative Investment Market (AIM:MSH) in May 2002.

"When Marshall Edwards was listed on AIM, we identified then that we would be moving to Nasdaq down the road," Naughton said. "It's a US company, its activities are focused in the US, and its major shareholders outside Novogen are US-based. Everything says America."

The IPO will consist of two million common stock units, each consisting of one share of common stock plus a warrant to purchase one share of common stock at an expected offer price of US$4.50 to $6.50. Up to 1.5 million will be offered to US holders of Novogen ADRs (NasdaqNM:NVGN) and shares (ASX:NRT), while the rest will be underwritten by US investment bank Janney Montgomery Scott. Novogen itself will not be participating in the offering.

Naughton said the prospectus had just been filed with the US Securities Exchange Commission, so was not effective yet, but the company was hoping to conclude the listing by the end of the year.

The company has applied for a Nasdaq SmallCap listing under the symbol MSHL.

Shares in Novogen had jumped 3.9 per cent to AUD$5.40 by press time.