American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has launched its sponsored Level 1 American Depositary Receipts (ADR) program which began trading on the OTCQX market on August 15, complementing its existing ASX listing.
American Rare Earths ADRs will trade on the OTCQX under the symbol AMRRY and represent one ADR for every 50 ASX-traded ARR ordinary shares.
ADRs enable qualifying non-US companies to have direct exposure to the US investment community and OTCQX trading provides access to enhanced visibility and trading liquidity.
Though founded in Australia, American Rare Earths’ primary assets and markets are in the United States.
As a result, the company is establishing a stronger presence in the United States and moving its corporate headquarters and management team to the Denver area.
This move should better serve US investors, be closer to its flagship project in Halleck Creek, Wyoming, and take advantage of other strategic business opportunities in North America.
American Rare Earths CEO Donald S Swartz, II said: “We are very excited about this ADR program as it has broad appeal among US institutions and will enable American Rare Earths to proceed on its path of gaining high accessibility to the US capital markets.”
“Given that demand for rare earths is expected to escalate sharply in the coming decade, the availability of ADRs in the US is expected to generate significant interest among US investors that can lead to an increase in shareholder value as the company continues to execute on its strategy of becoming a US-based entity.”
The Bank of New York Mellon is the nominated depository bank and it will waive ADR issuance fees for the first month of the program, to encourage existing holders to convert to the ADR and generate initial growth and liquidity.