Tech micro targets US capital and liquidity boost with dual-listing
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Special Report: The listing on the US over-the-counter (OTC) Venture Market will help drive awareness and provide exposure to the global investment community.
For ASX-listed tech company Reffind (ASX:RFN), North America is an important target market to source the investment required to fuel the company’s growth strategy.
And in order to better position itself for the year ahead, the company has targeted a listing on the OTCQB Venture Market.
Reffind is a major investor in boom North American loyalty company Loyyal, who has just announced a landmark commercial agreement with the world’s biggest airline, Emirates.
Established in 2010, the OTCQB market provides an efficient vehicle for capital flows into both US and international early-stage tech companies.
The listing will provide an efficient way for Reffind to get access to US capital markets, given that it already meets the relevant financial reporting and corporate governance requirements through its compliance with ASX listing rules.
And according to Reffind non-executive chairman Rumi Guzder, it also ties in accurately with the company’s strategic ambitions.
“Reffind is a truly global company, and we will continually seek opportunities to engage with our investors around the world through planned marketing activities,” Guzder said.
A footprint in the US market will help the company “make sure its growth strategy continues to be highlighted with new investors coming through”.
The OTCQB market operates at the “premium tier” of US OTC markets, with strict regulatory requirements that provide the platform for a higher degree of certainty among companies and investors.
Along with the cost efficiencies resulting from Reffind’s existing compliance structure, the company said a dual-listing will also provide an “important avenue for raising awareness with a broader investment community”.
The larger US market will provide more exposure for a number of the company’s successful corporate strategies, including a profitable investment in the Loyyal rewards platform which recently signed a commercial partnership with Emirates airlines.
In addition, indications from the US advisory team handling the OTC dual-listing application process are that is “is likely to increase the liquidity in the company’s trading volumes”, Reffind said.