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Peninsula Energy (ASX:PEN) has started the application process to list on the New York Stock Exchange. The process is expected to be completed in October, subject all regulatory and shareholder approvals.
As quoted in the press release:
Highlights:
- Imminent production from Lance Projects and NYSE listing will drive the re-rating of PEN
- US utilities looking for greater quantities of domestic uranium supply
- The US is the world’s largest user of uranium for electricity generation
- NYSE-MKT listing to be completed before the end of this calendar year
- This will allow direct access to the world’s largest capital market
- Foreign uranium companies with a US dual listing and US projects attract
- Higher valuation
- Increased liquidity as compared to non-US listed uranium companies
… Listing on a US stock exchange is expected to provide a number of benefits to the Company. As the largest generator of nuclear power in the world, the US provides access to not only the largest pool of capital globally, but also access to an active market well versed in the benefits of nuclear power generation. Average daily turnover of uranium peer companies dual listed on a US stock exchange consistently exceed the liquidity levels achieved on their non-US exchange by factor of 4 to 7 times.
Uranium companies with a listing on a US stock exchange benefit from a higher relative valuation than companies that do not have a US listing. Comparable In-Situ Recovery (ISR) companies with a US listing outperform companies that do not have a US listing by a factor of 2 to 3 times enterprise value per pound of measured and indicated resource.
Peninsula Energy Executive Chairman, Gus Simpson, said:
Listing on the NYSE MKT with production starting at the Lance Projects in the near future will allow greater alignment with peer companies, provide a more transparent valuation for Peninsula, greater US retail/institutional shareholder access and will, all things being equal, lead to a substantial valuation re-rating.
Click here to read the Peninsula Energy (ASX:PEN) press release
Click here to see the Peninsula Energy (ASX:PEN) profile.