Ann: NVU to Pursue US Expansion Strategy via OTCQB Market Listing, page-2

I asked Claude:

Here are the key pros and cons of an ASX-listed company also pursuing an OTCQB listing in the US:

PROS:

Access to US Capital Markets

• Access to more potential buyers of their stock by tapping into the large US investor base
• Easier for US institutional and retail investors to trade the stock without currency conversion complexities
• Better visibility among US analysts and fund managers

Enhanced Liquidity

• Trading across different time zones can provide more continuous price discovery
• Increased trading volumes from broader investor participation

Strategic Benefits

• Useful for companies with US operations, customers, or acquisition targets
• Can facilitate future US expansion or partnerships
• May help with US-based executive recruitment and retention

CONS:

Regulatory Complexity

• Dual compliance requirements with both ASX and US OTC regulations
• Need audited annual financial statements prepared in accordance with GAAP by a PCAOB member auditor. Additional reporting obligations and disclosure requirements

Costs

• Annual listing fee of $12,000 for OTCQB
• Legal, accounting, and compliance costs for maintaining dual listings
• Currency hedging and administrative expenses

Operational Challenges

• May hamper transparency for investors and reduce managerial efficiency
• Issuing shares in mergers and capital market transactions are more complex
• Managing investor relations across multiple markets and time zones

Market Risks

• Potential for price arbitrage between markets
• Must maintain minimum stock price requirements for OTCQB eligibility
• Limited liquidity on OTCQB compared to major US exchanges

The decision typically depends on the company's US exposure, growth strategy, and ability to manage the additional complexity and costs.