The stage is set for K2 Energy to switch from the ASX to the NSX
Link copied to
K2 Energy (ASX:KTE) has told its shareholders today will be the last day its shares will trade on the ASX prior to its switch to the NSX.
K2 Energy has traditionally specialised in oil and gas but has undertaken little exploration activity in recent times.
However it has a stake in NASDAQ-listed semiconductor company Atomera as well as worldwide rights to MST Technology which is a solar energy application. It had $564,000 cash on hand as at March 31 2021.
Although K2 Energy has remained trading on the ASX the threat of suspension has loomed over its head for months.
The ASX has argued it had insufficient operations to be listed and its mind couldn’t be changed by K2’s attempts to get reclassified as an investment company. It was initially due to be delisted in May before being granted a two-month reprieve set to expire on July 7.
Now it has been able to convince the NSX to welcome it and it will begin trading on Australia’s secondary exchange from next week.
Shares saw a slight drop after this news.
It goes without saying moving to the NSX is a far better outcome for shareholders than the company being delisted or listing on a foreign exchange, either way making it difficult to trade shares.
The listing on the NSX will mean shares can be traded easily and without worries about currency conversions and potentially foreign tax obligations.
The company’s code and share registry operator will remain the same.
Nevertheless, as the company warned its shareholders today, not all brokers offer NSX trading.