The current price or any future price will not impact AJX being able to list on the NYSE. Please read that carefully. People seem to be consumed with the thought that we need to hit a magical share price on the ASX for that to happen. We don't.
When we list, all that the ASX SP will influence is the ratio that is chosen for the ADR's.
I know that NC said that a 1:1 ratio is to be used when he spoke to us in Adelaide and this surprised me, but he also stated that he did not want to discuss the details of the listing at that meeting. At that point in time, we were 3 weeks into a 6 month process (his exact words). Too much can and has occurred between now and then. As an example, we had a large insto recently selling off a truckload of shares and it impacted our SP dramatically. Imagine if that happened 2 days before the listing.
People need to realise that we do not need to get to $5 (or any other price for that matter) to list on the NYSE. What we do need is to have a company valuation that meets the NYSE listing requirements. The listing price will then be worked out by the hired guns that NC has currently working on it. Not too high, not too low.
Here's the short of it...
1 - The ASX SP flies like a rocket - We hit $5... woo hoo...!! We list on the NYSE at a 1:1 ratio, we all pat ourselves on the back and we invite pinto over for a beer. This is highly unlikely... sorry Pinto.
2 - The ASX SP flatlines for a few more months - We all scratch our heads and hold our breath...? No, we still list on the NYSE and we use a slightly higher ratio.
3 - The ASX SP falls back to 35 cents - We all panic and wait for the sky to fall..? No, we still list on the NYSE and we use a higher ratio than in #2.
I honestly don't care what ratio it is as long as we are on the NYSE. The exposure that a US listing will give AJX is monumental. The ADR ratio is nothing but a side note. I have absolutely no concerns if we were to list with a 10:1 ratio, or even something higher like 20:1.
If people really want to worry about something, pray for the AU dollar to fall in a screaming heap when we list. I'll be rubbing my hands together if that happens.
