Interest from North American investors in the wake of US Government policies to promote the electric vehicle (EV) and power storage sectors has encouraged the company to seek quotation on the OTCQX as a secondary listing.
() (FRA:SDL) has attracted strong interest from North American investors prompting the company to start the process of seeking quotation on the US OTC Markets Group OTCQX as a secondary listing.
OTCQX is the highest tier in the OTC markets, a platform that offers an electronic quotation and trading service that will enhance the visibility and liquidity of FYI securities and accessibility to potential investors in North America.
The strong investor interest includes equity funds, ESG funds and family offices.
Milestones achieved
According to the company, North American investors have shown interest as a result of some milestones achieved and potential demonstrated by it including:
- FYI’s progress on the innovative and fully integrated high purity alumina (HPA) strategy, which helped the company in attracting high calibre corporate and counterparty interest;
- Demonstrated value outlined in the company’s published DFS;
- Leverage that HPA offers in the burgeoning EV and power storage markets; and
- Potential partnerships and opportunities in North America.
North American investor interest
Increasing investor interest in the US for the EV sector and its supply chain commodities, including HPA, appears to be stimulated, in part, by President Biden announcing plans to replace the US Government’s fleet of 645,000 vehicles with EVs.
The replacement plan is part of the Democrat Party’s $1.9 trillion post-COVID stimulus funding and investment into supporting US industries including battery-related development.
Will maintain primary ASX listing
FYI has clarified that it will maintain its primary listing on the ASX, with the OTCQX as a secondary or compliance listing trading the same class of ordinary share to the FYI’s ASX traded stock.
The FYI OTCQX quoted shares or securities will be traded ‘over-the-counter’ via a dealer network as opposed to trading on a centralised exchange.
FYI’s shares will not be a synthetic or derivative stock.
European interest
FYI already trades on OTC markets on the Frankfurt Stock Exchange under code SDL.F and the Munich Stock Exchange under the code SDL.M.
The Frankfurt and Munich listings have provided exposure for the company to European investors and FYI has observed increased trading volumes through these platforms over the past several months with overall European-based trading tripling.
The Frankfurt Stock Exchange is the world’s third-largest exchange-trading market, behind the New York Stock Exchange and NASDAQ.
FYI shares on the ASX have been as much as 11 per cent higher to A$0.45 while the company’s market cap sits at approximately A$125.1 million.
Read More: www.proactiveinvestors.com.au
