Is Additional Cap Raising for US Exchange?, page-5

But what shares will be traded over there?
Don't they need to have a certain volume of shares that are held and tradeable over on the US Exchange?
How will they move the existing shares from ASX over to there?

So then don't they have 2 options?
1) Start buying loose shares up to then be used to populate that exchange.
2) Issue shares to US Investors with them being traded on the US Market.

if they go with option 1), that will be a win for current Shareholders as it will put significant buying pressure on the stock and thus increase the price... but perhaps artificially? Additionally, who will pay for this? Will they get a broker who is happy to do it, thinking they will be able to sell them in the US for a premium? Otherwise they will need to use company money to do it... not a good use of funds.

if they go with option 2) they do a CR, company gets some good money to use for future JV's, new US investors feel like they are getting a good deal, creates a good volume of shares over there, and thus any price increase should be beneficial to all.


my thoughts only.