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(Sharecast News) - Rocky Mountains-focussed oil and gas company Zephyr Energy announced on Friday that it is filing an application with the OTC Markets Group for its ordinary shares to be publicly cross-traded on the OTCQB market in the United States.
The AIM-traded firm described the OTCQB, also known as the 'Venture Market', as a Securities and Exchange Commission (SEC)-recognised market for US and international companies in the "entrepreneurial and development" stages.
It said it believed that having its shares traded on the OTCQB would provide enhanced investor benefits, including easier trading access for investors located in the US, and greater liquidity due to a broader geographic pool of potential investors.
A market maker would be appointed in the US to support trading on the OTCQB.
The process to enlist on the OTCQB was expected to take about six weeks, and trading on the market would have no impact on its existing shares, which would continue to trade on the AIM Market in London.
No new shares would be issued as part of the cross-trade on the OTCQB, the board confirmed.
Zephyr said it would continue to rely on the announcements and disclosures it makes to the London Stock Exchange, and would have no Sarbanes-Oxley or SEC reporting requirements in connection with the proposed cross-trading on the OTCQB.
To qualify for the OTCQB, Zephyr said it would need to demonstrate that it met "high" financial standards, following best practice corporate governance, and that it complied with applicable securities laws.
"We believe dual trading on the OTC and AIM Markets represents another important step for the Zephyr corporate platform," said chief executive officer Colin Harrington.
"Dual trading, combined with our recent pledge to achieve carbon neutrality across our operational footprint, will serve to diversify the share register and increase exposure to a broader range of investors, whether US-based or ESG-focussed."
Harrington said the move came on the back of an already-increased level of interest from US investors, as a result of the recent expansion of its operational footprint in the country.
"Over the last 18 months, we've worked hard to complete Zephyr's corporate transformation, and following our admission to trade on the OTCQB, I believe our company platform will now be optimally structured to benefit from the considerable operational activity planned for the coming months."
At 1606 BST, shares in Zephyr Energy were up 1.83% at 4.18p.
3 May 2024 21:33
IN BRIEF: Zephyr Energy in debt for equity swap
Zephyr Energy PLC - oil and gas company focused on resource development from carbon-neutral operations in the Rocky Mountains region in North America - Announces USD3.88 million debt for equity swap at a price of 4.85 pence per share. Further, says operations at the State 36-2 LNW-CC-R well are progressing as expected. Drilling operations have commenced and is planned to a total depth of 10,362 feet. Chief Executive Colin Harrington says: "We continue to make good progress on the drilling of the State 36-2R well and remain on track to complete the well within our forecast thirty-day period."
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