Someone sent an email to LNG from hotcopper and they responded with this:
http://hotcopper.com.au/threads/lnglf-vs-lngly.2362489/page-10?get_post=true#.VB-C6hZJNDJ
I sent an email to the company a few days ago as I was concerned about the difference between these stocks. If and when the company goes public in the US, I don't want to lose value in the LNGLF shares if these are the wrong ones to be holding. Response below...
Thanks for your email and interest in the Company.
Magnolia LNG Project and Bear Head LNG Project are 100% owned by Liquefied Natural Gas Limited (LNG Ltd), an Australian company. When you invest in LNGLY, or LNGLF you are in fact investing in LNG Ltd shares. Our ticker code is LNG on ASX (Australian Securities Exchange).
LNGLF are our shares but not on the platform to trade that we are promoting, we are promoting LNGLY through ADR’s with Deutsche Bank. The LNGLF shares are trades made by market makers without the support of the company where the market maker goes and purchases the actual shares on the primary exchange of the company (in our case the ASX). There is no ADR ratio here, it is always 1-to-1. Also, since these shares aren't held in a custodial account they generally can't be purchased on margin. These are often very low volume listings, in the case where a company has both a Y and a F listing, the ADRs (Y listings) will, once established, have much higher volume than the F listings.
LNGLY shares are ADRs with Deutsche Bank, being the depositary institution holding the local shares. This is a sponsored ADR (with LNG supporting the listing). As these are ADRs an ADR ratio (in this case 40 LNG shares per ADR) is in effect.
Below is a bit more information on our American Depository Receipts (ADR’s) that are sold in USA on OTC market under the ticker code LNGLY.
Liquefied Natural Gas Limited maintains a sponsored Level 1 American Depositary Receipt (ADR) program with Deutsche Bank Trust Company Americas (Deutsche Bank). ADR details: Ticker: LNGLY Structure: Level 1 ADR Exchange: OTC Ratio (ADR:ORD): 1 : 40 DR ISIN: US53632G1094 CUSIP: 53632G109 Contact details for ADR investors and brokers: Deutsche Bank ADR broker services desks New York: +1 212 250 9100 London: +44 207 547 6500
Also, to answer your other queries, yes the LNGLF and LNGLY stock is part of our issued capital. If we decide to list on another US exchange (ie NYSE of Nasdaq), these stocks will be converted at the time.
Kind regards
David Gardner
Company Secretary
Liquefied Natural Gas Limited
