Meren Energy Inc (TSX:MER, OTCQX:MRNFF) earlier this week said it had upgraded its US trading status from the OTC Pink to the OTCQX market, in a move it described as an important step in its investor engagement strategy. The company told investors that the upgrade would support greater visibility and communication with capital markets, including US-based retail and institutional investors.
Investor relations manager Shahin Amini told Proactive the OTCQX listing would improve the company’s visibility on market data systems used by brokers and funds.
Proactive: Meren shares are now trading on the OTCQX in the US. What does this move mean for the company and its shareholders?
Shahin Amini: It's important to remind everyone that after completing the strategic consolidation deal earlier this year—which doubled our reserves and production—and following the rebranding of the company from Africa Oil to Meren, it's very important for us to actively engage with the capital markets, investors, and sell-side analysts.
The upgrade from OTC Pink to OTCQX is a very important step in our investor relations and communication plans as we seek to reach out more proactively to the markets. This is part of a broader plan for more active engagement with investors.
Do you expect to increase your visibility and your access to US investors, especially retail investors?
Absolutely. There are three points I want to highlight here. You've already touched upon the most important one, which is enhanced visibility and market presence. Most people know that OTCQX companies are featured on high-tier market data systems. This will increase our visibility with brokers, funds, and retail platforms. It will help us attract more coverage and specifically support our investor relations and communications outreach in the US markets.
Also, this is a cost-effective upgrade. OTCQX delivers many of the market visibility and access benefits of a full listing—but at a fraction of the cost and regulatory burden. We'll rely on our high standards of Canadian disclosure as a foreign issuer on OTCQX. This move reiterates our high disclosure standards. We expect it to be well received in the US market.
What else should investors be watching out for in the next six to 12 months across your core projects in Nigeria and Namibia?
First of all, and most immediately, I want to remind everyone that our third quarter results are due to be published on Thursday, 13th of November, after market close. There is also scope for us to declare another quarterly dividend, subject to board approval. If approved, that would take our total annual distribution this year to $100 million, which was a promise made following the Prime deal.
On the operational front, there are multiple potential catalysts. In Nigeria, we are working with partners towards restarting infill drilling on our producing assets. The Preowei project could also reach final investment decision. In Namibia, we could have a high-impact exploration catalyst next year. The Venus discovery is working its way towards final investment decision. In Equatorial Guinea, we’ve been actively involved in a farm-down process, and we hope to provide an update on that in the coming months.
Quotes have been lightly edited for style and clarity