FYI Resources Ltd (ASX:FYI) (FRA:SDL) (OTCMKTS:FYIRF) will start trading on the US-based OTCQX market on Thursday, April 15 (US time), under the stock code OTCQX:FYIRF, after its application to OTC Markets was accepted.
The company believes that trading on the OTCQX will enhance its visibility and accessibility to the growing market of North American retail, high net worth and institutional investors.
Shares on the ASX have been as much as 8% higher this morning to A$0.61 while FYI's market capitalisation is approximately A$168.6 million.
“Important step in our future”
Managing director Roland Hill said: "FYI believes it is a perfect time to increase our exposure to one of the largest and most sophisticated markets in the world.
“In light of the growing US interest in E-mobility and battery-related investments, as a participant in the electric vehicle revolution, FYI believes it is an important step in our future to become a participant in the OTCQX.”
Primary advantages to North American investors include:
- Allows trading of FYI in local time zone;
- Trades and settlements are in US Dollars (no exchange rate risk or additional fees);
- The OTCQX is a common share (same class) as the FYI shares traded on the ASX (ASX:FYI); and
- All shares are maintained through the company's current share registry, Automic Group.
Increased US investor interest
This step into the US markets is a response to an increase in US investor interest in FYI’s fully integrated and innovative flowsheet design which delivers high purity alumina (HPA) coupled with strong financial metrics, a positive ESG impact and increasing investment exposure into EV and strategic battery minerals supply chain opportunities.
OTCQX promotes both financial standards and ‘best practice’ corporate governance and statutory compliance.
DTC eligibility
FYI is also seeking eligibility from The Depository Trust and Clearing Corporation (DTC) and this process is independent of trading on the OTCQX.
DTC manages electronic clearing and settlement of publicly-traded companies across the US and in more than 130 other countries, thereby giving investors around the world the opportunity to trade in the securities of member companies electronically from their online accounts.
It provides for cost-effective clearing and guaranteed settlement, simplifying and accelerating the settlement process of daily trades.
Such eligibility will ensure a more liquid and transparent market for the company’s common shares within the US as is the case with daily on-market trading on the ASX.
FYI anticipates this process will be completed during May 2021 and will advise the market accordingly.
In the interim OTCQX trading will be conducted through OTC market maker, B.Riley Financial.