European Metal Holdings (AIM:EMH) said that due to increasing interest in its Cinovec project, the largest hard rock lithium deposit in Europe, the company will pursue a US-based OTCQX (over-the-counter) listing and has commenced trading on the OTC Pink Market.
The mineral exploration and development company highlighted that its entry into the US-based OTC markets - and in particular the actively traded OTCQX market - increases the ease within which North American investors can purchase European Metals securities.
The ASX will continue to be the group’s primary listing, with investors able to purchase shares through the OTCQX, OTC Pink, UK-based AIM market and Germany's Frankfurt Börse.
As announced in July, EMH is now in discussions with the Czech Republic's primary market, the Prague Stock Exchange (PSE), with regards to a listing of the Company's securities. It said these discussions continue and that it hopes to update shareholders in the near future.
Commenting on the Pink Market listing and upcoming OTCQX application, European Metals Executive Chairman Keith Coughlan said, "The expansion into additional marketplaces is due to long-standing and growing support for the Company in various international locations.”
Shares in European Metal Holdings have more than doubled in the past three months to open 3.39% higher this morning at 30.5p following the announcement.
The company cited the US market in particular as demonstrating “a keen awareness of the Cinovec project,” which is the company’s near-term development asset in Europe proximate to a number of battery manufacturers and end-users such as automobile companies.
"As the home of major battery-focused companies such as Tesla, North American investors are uniquely placed to understand the importance of lithium for future technologies,” it said.
The company highlighted that ‘over the counter’ markets offer a cost-effective method to access US investment, in turn providing a nexus to the largest capital markets globally.
OTCQX companies are not required to report to the Securities and Exchange Commission, it noted, avoiding costly compliance processes by submitting their home country disclosure in English.
European Metals also confirmed that its listing will be ‘non-dilutive’ since no additional capital is required to be raised and no new shares will be issued on the OTC markets.
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