The move simplifies trading and improves liquidity for Lake investors in North America and globally, amid the lithium industry’s continued recovery from the electric vehicle revolution.
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has received DTC approval to enable real-time electronic clearing and settlement in the United States for its OTCQB-listed common stock through the Depository Trust & Clearing Corporation (DTCC).
This will simplify trading and improve liquidity for investors in North America and globally, amid the continued recovery of the lithium sector due to the acceleration of the electric vehicle revolution.
“Broader pool of investors”
Chairman Stu Crow said, “We are delighted to have secured DTC e-commerce, allowing Lake shares to trade in USD for the convenience of North American investors.
“This should simplify trading and improve liquidity with more investors.”
Lake first obtained a secondary compliance listing in the OTC QB market with the code LLKKF in December 2019, with B Riley FBR acting as an OTC sponsor.
Compliance requirements are essentially the same as the Australian Securities Exchange, with listings automatically uploaded to the OTC platform.
The three main benefits of LLKKF’s OTC QB trading include:
- Trading and settlement in US dollars (USD);
- Trade in the North American time zone; and
- LLKKF is the same class of ordinary shares as shares traded on ASX (ASX: LKE), registered in two different registers.
Crow added, “We would like to thank our transfer agent Dynamic Stock Transfer, our sponsor OTC B Riley and our legal counsel Lucosky Brookman for facilitating this important step for Lake in expanding our global investor base.”
Shares rose more than 13% intraday to AU$0.17 after hitting AU$0.18 on Tuesday, a new high in nearly three years.
Lake is a clean lithium developer using direct mining technology for the production of sustainable high purity lithium from its flagship Kachi project in the lithium triangle.
This direct extraction method offers a solution for two growing demands of electric vehicle batteries: high-purity battery materials to avoid performance issues, and materials that are sustainable and responsibly sourced.