1/100 CDI, page-5

Poki, if you currently hold 80,808 shares in PLL listed on the ASX, with the share price currently at 36 cents, then after the redomicile you will hold 80,808 CDIs (a type of share representation) listed with the ASX at the current share price of 36 cents - so almost no (noticeable) change for you.

For you, there will be no change, except that your current shares will be converted to CDIs (Chess Depository Interests), which is a way for an overseas domiciled company to maintain a dual listing on the ASX where the ASX is not the primary listing, but is a secondary type of listing.

Now if you have an American broker in the USA, and say you wanted to convert your CDIs into primary listed shares held by the companies register on the NASDAQ, then you would need to divide the number of CDIs you have by one hundred, and that is the number you would have held for you by your broker in the USA, but really, unless you are a USA citizen, there is no need to do this.

For example, if you take the current price of PLL on the NASDAQ, it's $27 USD.
And if you currently convert $27 USA dollars to Aussie dollars, and then divide by 100 (which is the ratio PLL are using for their ASX CDI to NASDAQ holdings), then you get 36 Aussie cents, the current price of PLL on the ASX.

The reason I believe that some people, and possibly funds, are selling, is because it's common once a stock has been redomiciled for the company to keep the CDI's going on the ASX for a period of 6 months or a year, and then delist from the ASX, then you would have no choice, the company would forcibly convert your CDI shares to NASDAQ shares and hold them in the USA, and if you did not have a USA broker, then you could get someone like CommSec or the other banks here, or your Aussie broker, to hold them for you as an overseas holding, for instance, CommSec use Pershings in New York to hold their overseas stock but Aussie shareholders can view this on the CommSec web site.

For the moment though, you will find (virtually) no change, your shares will simply become CDI's and listed on the ASX just the same as they are showing there now, and you can trade just the same as you do now.

PS: I like this news today about the primary redomicile of PLL, and bought in at 35 cents.

Gw