I believe I have been through this before with the OTC counter. But essentially they are only a reflection of the available stock which has transacted across the various broker networks with international ties and clients.
So going through the list of prominent daily participants in the SYAXF's we can start off with the New York based connections of GTS securities which is one of the largest market makers in the US accounting for up to 5% of all cash equities volume and the largest on the NYSE with over US$11 trillion of market capitalization.
In fact it ( GTS ) specialises leveraging transactions for its primary US markets clients across ' market regimes ' So it's no surprise that it's based in New York were our own capital raising Jett Capital is also based. And just on a side issue , it should also be no surprise that Jett and Petra coincidentally teamed up in early 2021 and were also involved in the $40 raising for Core Lithium along with Taylor Collison and Bell Potter and Jett as lead with Petra riding shotgun as co-broker.
And of course as I've posted before , you've got the likes of Stone-X financial , Mcap LLC , talked , Citadel Securities , Old Mission Markets LLC , Maxim Group , Virtu Americas , G1 Execution Services ( E-Trade ) , and our very own Canaccord Genuity LLC playing a significant almost daily role in the market making ' Low Volume ' trading activities of the OTC counter ' stock availability ' of SYAXF.
So you can go through the connections again as I have done of all these trading concerns , but the bottom line is that the OTC counter in terms of Sayona and its rather large SOI is only a mirror reflection of the available stock coming from essentially the SAME international pool of stock. ie the ' Free Float ' of Sayona.
So if you want to think of it as Australian ASX and its broker network providing stock through clients international connectivity and that this in a sense if not trading is considered in a way as ' Lent out Stock ' ( if not being traded ) .
And this notion can be reflected and supported by the clear fact that despite the high SOI on the home exchange , and the high volume liquidity that comes with it , the stock availability on the OTC is still very much illiquid and to a degree as a percentage movement on any given day more volatile ( and hence where the trade is on any given day ) .
And you can see that even today where the trading range was as wide as US$ 11.5 cents to the LOW ( down 15.44% ) .....to as HIGH as US$14.14 cents ( or almost 4% higher ) ......to eventually close level at US$13.6 cents. And ALL of this on only 1,042,058 in volume and almost 60% higher volumes than the average of 653,049 over the last 30 days trading activity.
So you can see that despite this notable increase in OTC volumes , it still is but a fraction of the 39,545,789 on the last day traded on the ASX plus the Chi-X volumes of 32,798,911. So this activity on the OTC is only by comparison 1.44% of the total traded volumes on the home exchange.
And you can see this ' Free Float ' effect in the visible depth of the OTC sell side where there is only a total of 77,8389 up to the price of US$16.0 cents in only 8 levels deep with the next available parcel of 2,000 at US$1.18 and an undisclosed parcel above that pricing.
So in conclusion , if the OTC is almost a derivative ' Proxy ' for BOTH the available stock via the defacto ' Free Float ' being transacted through these interconnecting global broker networks as well as being representative of the underlying market sentiments as reflected by the upside price expectations on low available volumes.
Then what does this say about both the share capital figures I had submitted and where we are ultimately likely to go given the ' true ' available retail ' Free Float ' , and because we should all know that one of the imperatives of the OTC trading counters is to ' accumulate ' due the relatively lower available pricing's you would otherwise have with a NYSE or Nasdaq comparative listings.
And I reckon the volumes on the OTC could be much much higher but for the simple fact that there just isn't the available stock in the free float to transact on these broker networks. In other words - no shortage of interest coming from the likes of these Market Maker trading platforms - just not enough stock
But one certainly has to ask the question as to WHY would this platforms trading participants ....in a generally down lithium market trading environment allow 60% more volumes to be transacted than the average for the last 30 days to to end up trading ' LEVEL ' at US$13.6 cents or an equivalent A$20.25 cents........
Because it had every opportunity to close down right.
Market Makers I guess. Because that's what they do right......
Someone or some entity wants in though at 18.0 cents I reckon. And it appears to be being guided to that price point for some reasons on the ASX.......
(20min delay)