I was finding this to be a fascinating, vigorous, debate which made me wonder why people are worried about losing their investment in BRN
Our new mate Chat GPT has helped me out. Seems like we aren’t forced sellers. Was that the concern. I have ComSec International so it would be pretty straight forward I expect. anything I am missing here?
If a company like BrainChip, which of is currently listed on the ASX, chooses to delist from the ASX and list on a U.S. exchange (like the NASDAQ or NYSE), here’s what typically happens to the shares held by Australian investors:
1.
Notification and Transition Period
- The company would issue an official announcement outlining the delisting plans, reasoning, and timeline.
- Investors would be given advance notice to decide how they want to manage their holdings.
2.
Options for Australian Shareholders
Australian shareholders generally have a few options:
a.
Convert to U.S.-listed Shares (ADRs or Direct Holding)
- Investors can choose to convert their ASX-listed shares into U.S.-listed shares, often via a share registry or broker-assisted process.
- This could involve:
- Transferring holdings to a broker that can trade U.S. stocks.
- Potentially receiving American Depositary Receipts (ADRs), if offered.
- Fulfilling any regulatory/identity requirements (like W-8BEN tax forms).
b.
Sell Shares Before Delisting
- Investors may choose to sell their shares on the ASX before the delisting date to avoid complexity or foreign exchange/tax exposure.
c.
Hold Shares via International Broker
- If investors don’t sell or convert, some brokers (like CommSec International, Interactive Brokers, etc.) may allow them to continue holding and trading the U.S.-listed shares.
3.
Implications to Consider
- FX risk: U.S. shares are traded in USD.
- Tax implications: May involve U.S. tax reporting (withholding, W-8BEN, etc.).
- Liquidity: Depends on how popular the stock becomes on the U.S. exchange.
- Broker capability: Not all Australian brokers support U.S. trading—investors might need to switch.
Summary
If BrainChip delisted from the ASX and relisted in the U.S., Australian investors would either:
- Convert to U.S.-listed shares (possibly via a custodian or broker),
- Sell their ASX shares before the delisting,
- Or move to an international broker to continue holding/trading.
(20min delay)