Ethernity Networks Ltd (AIM:ENET), the provider of processing technology for ethernet switching, has said its shares will begin trading on the OTCQB Venture Market in the US today.
Shares will trade under the ticker symbol ENETF and will have no impact on its existing shares which will continue to trade on the AIM market.
Additionally, the company said no new ordinary shares will be issued as part of the cross trade and it will continue to inform investors with announcements it makes in the UK to the London Stock Exchange.
According to a statement, the directors believe being part of the OTCQB will “assist in diversifying the company’s shareholder base with increased liquidity and brand visibility.”
Trading in the US also opens Ethernity’s shares to a broader pool of investors, priced in the US dollar “which has the potential to enable greater liquidity.”
“This cross-trading facility provides an opportunity to open up trading and investment in Ethernity to the North American investor community,” the company's chief executive David Levi said in a statement.
"We have strong sales growth with a high profile North American customer, as well as from the recently signed contracts leading into and beyond 2023, with further anticipated growth from additional possible contracts. We welcome the chance to share our fast-developing and exciting story on the US stage as well as the UK one," he added.
As a verified market, the OTCQB offers transparent trading for companies that have met a minimum bid price test, are current in their financial reporting and have undergone an annual verification and management certification process. The cross-trading facility is provided through OTC Markets Group Inc. (OTCQX:OTCM), located in New York. OTC Markets operates the world's largest electronic interdealer quotation system for US broker dealers and offers multiple media channels to increase the visibility of OTC-listed companies.
Jonathan Dickson, vice president of Corporate Affairs at OTC Markets said: "We are delighted to welcome Ethernity Networks Ltd (AIM:ENET) to the OTCQB in the United States. With Ethernity's primary listing remaining on London's AIM, the OTCQB's cross-trading facility will allow Ethernity to broaden its horizons and provide investors in the United States with the ability to access the Company's Ordinary Shares in US dollars and during US market hours."
Ethernity added that it has appointed Harbor access to assist management with investor outreach and awareness in the US, while B. Riley Securities has been named as its OTCQB Sponsor.