CleanTech Lithium PLC (AIM:CTL, OTCQB:CTLHF), a company engaged in exploring and developing sustainable lithium projects in Chile, has announced its intention to pursue a listing on the official list of the Australian Securities Exchange (ASX).
Joint lead managers Canaccord Genuity (Australia) Limited and Fox-Davies Capital have been appointed to facilitate the listing, which will hopefully be completed in the third quarter of this year, subject to regulatory approvals and processes.
The company said its board has examined the merits of an ASX listing and held discussions with major shareholders and other parties over the past few months, including two visits to Australia by chief executive Aldo Boitano.
An ASX listing would provide real benefits to the company and its shareholders, including exposure to a robust resources market where lithium exploration companies have attracted considerable investor interest, the board concluded.
Listing on the ASX would also allow closer communication with Australian investors, extend CleanTech Lithium's shareholder base, and provide greater liquidity for CleanTech Lithium shares.
Over 30% of CleanTech Lithium’s shareholder base is either based in, or has links to, Australia.
Listing on the ASX will not affect CleanTech Lithium's existing ordinary shares trading on the AIM Market of the London Stock Exchange or on the OTCQB Venture Market in North America.
"The ASX market has seen a growing interest in green commodities, in line with the global transition to a lower carbon future, and we have seen the valuations of many ASX-listed companies involved in the lithium supply chain benefit as a result,” said Boitano in a statement.
“We feel that listing on the ASX is timely and will enable a more favourable valuation of the Company and its assets. We have also been encouraged by our major shareholders and other potential investors to take this route, especially given our strong relationship with Australian shareholders on our register," he added.
There is no guarantee, however, that CleanTech Lithium will be admitted; the company is required to demonstrate that it will have sufficient shareholders to establish and maintain a market on ASX.