Now that Novonix will be listing on the OTCQX Best Markets tonight, it is important to provide some clarification to many misleading posts on HC, saying that the OTCQX Best Markets only follows the ASX movements.
I confirmed the following with Greg Baynton to my question, how does the OTCQX Best Markets operate?
Greg Baynton's Response in italic:
"The OTC does not settle the shares itself. It provides a market for a buyer and a seller to match. The OTCQX seller will have to provide the shares to the OTCQX buyer. The OTCQX seller may already hold an inventory of shares (through prior buying on ASX), or could buy shares on ASX and settle after the OTCQX trade. The OTCQX seller could also acquire shares via off-market transfer also.
In NOVONIX NVNXF trading on OTCQX, participants are not dealing in derivatives over shares (e.g. ADRs),they are buying/selling actual NOVONIX shares,so they ultimately need to come from the existing pool of shares on issue - and be registered with the Company’s share registry in Australia (Link Market Services).
Basically the OTCQX Best Market allows for Novonix's actual shares to be traded between participants...but they need to own actual Novonix shares out of the existing pool of shares on offer off the ASX from the existing Novonix Share Registry, after they settle the OTCQX trade.
1. They could have acquired Novonix shares through previous Capital Raisings or off market transfers.
2. If they didn't and don't already own Novonix shares, they must come into the ASX and buy Novonix shares at market.
We saw the effect of this in the OTC Pink Markets "traders" platform in the first 20min of trading on battery day, when it hit $2.40. The difference is that the OTCQX Best Markets are long term investors. You can see the list of ASX200 stocks that trade on OTCQX Best Markets in Novonix's announcement below.
The difference this time, in the OTCQX Best Market is that these Investors are Long Term Institutional and Private Technology Investors in North America and Europe....and the OTCQX Best Market is a $US329Billion market, OTC Pink "Traders" Markets is only $US10Billion....
This article clearly discusses why Novonix is going down this path, and the heading of the article below says it all....
As major milestone events are made, we will see significant increase in overnight volumes and share price rise to new all time highs.
There are plenty of major milestones to be announced in the coming months....
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Novonix (ASX:NVX) eyes OTC markets to bag international investors
https://themarketherald.com.au/novonix-asxnvx-eyes-otc-markets-to-bag-international-investors-2020-06-10/
Novonix Lists on the OTCQX Best Markets tonight...Ticker Code NVNXF add that to your watch list and keep an eye on it overnight from now on!
(20min delay)