The Freelancer (ASX: FLN) share price has fallen 8% today after the company shared news it has begun trading on the OTCQX Best Market.
The post Why has the Freelancer (ASX:FLN) share price has fallen 8% today? appeared first on The Motley Fool Australia. –
The Freelancer (ASX: FLN) share price has fallen today despite the company sharing good news. Freelancer announced today that it has begun trading on the OTCQX Best Market. The OTCQX Best Market is the top tier of the OTC Markets group, a decentralised market where shares are traded by dealers. It typically allows a company greater access to international investors and more liquidity.
At the time of writing, the Freelancer share price is down by 5.34%, trading at 62 cents.
Let’s look further into Freelancer’s new listing.
Freelancer on the OTCQX
In the announcement, the company stated that listing on OTCQX market will enhance its visibility and ease of access for US-based investors.
Generally, a company listing on OTCQX is in itself a good sign of health. To be eligible for the market, a company must meet high standards including having open and proper corporate governance, complying by US securities law, and quickly disclosing company happenings.
Ordinary shares in the company will still continue to trade on the ASX.
Freelancer also said it is in the process of making its shares eligible for Depository Trust Company (DTC). DTC manages the clearing and settlement of publicly-traded company shares across the US and 131 other countries. It simplifies and accelerates the settlement process of share market trades.
Commentary from management
Freelancer’s CEO Matt Barrie commented on the company’s new listing:
We are pleased to reach the milestone of trading on OTCQX, as this will make it easier for our U.S. investors, employees and customers to invest in Freelancer by reducing the requirement of having an Australian share trading account.
Freelancer share price snapshot
The drop caused by today’s news still leaves the Freelancer share price well and truly in the green on the ASX.
Currently, the Freelancer share price is up by 20% year to date. It is also up by 100% over the last 12 months.
The company has a market capitalisation of around $295 million, with approximately 453 shares outstanding.
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The Motley Fool Australia has recommended Freelancer Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.