The company’s shares are backtracking today. We take a closer look
The post European Lithium (ASX:EUR) share price sinks after listing in US appeared first on The Motley Fool Australia. –
The European Lithium Ltd (ASX: EUR) share price is in reverse on Tuesday afternoon. This comes after the lithium miner announced its shares have now begun trading on the OTCQB market in the United States.
At the time of writing, European Lithium shares are swapping hands for 14 cents, down 3.45%.
European Lithium expands access to US investors
A possible catalyst for the fall in the European Lithium share price is that investors are fearing a share dilution.
According to the release, European Lithium’s ordinary shares are now quoted on the OTCQB market. Trading under the symbol EURIF, the listing provides direct access to US institutions and retail investors to invest in.
A diversified shareholder base bolsters the company’s strategic efforts to scale up its lithium projects in Europe. The company is focused on developing the Wolfsberg Lithium Project in Austria to production and securing critical local lithium supply.
European Lithium’s primary listing is on the ASX, with the secondary quotation on the OTCQB market and the Frankfurt Stock Exchange, under the symbol PF8.
European Lithium executive chair Tony Sage commented:
We’re actively engaging with US investors and institutions who have expressed strong interest in the company and its projects. We believe that providing a convenient and transparent trading platform for US investors to directly access our shares will improve liquidity and broaden awareness of the company among mature and sophisticated investors with strong interest in lithium.
More on the OTCQB market
The OTCQB market, also called the “Venture Market”, is a trading platform that is operated by OTC Markets Group Inc in New York. The middle-tier market provides a home for shares that are not listed on the two big United States exchanges, NYSE and NASDAQ.
European Lithium share price summary
Over the last 12 months, the European Lithium share price has accelerated to post a 230% gain. Year-to-date, its share price performance is almost as impressive, up 210%.
Since hitting a 52-week high of 19 cents in early November, European Lithium shares have retreated for the time being.
Based on today’s price, European Lithium presides a market capitalisation of roughly $155.9 million, with approximately 1.08 billion shares outstanding.
The post European Lithium (ASX:EUR) share price sinks after listing in US appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.