Metal recycling group CMA Corporation says it will have improved access to world investment markets as its shares start trading in the United States as American Depository Receipts.
Metal recycling group CMA Corporation says it will have improved access to world investment markets as its shares start trading in the United States as American Depository Receipts.
The announcement is below:
Metal recycling group CMA Corporation Limited (ASX: CMV) ("CMA") is pleased to announce that its shares will commence trading in the United States as American Depository Receipts (ADRs), providing the company with improved access to world investment markets.
From 28 April 2009 CMA ADRs will trade on OTCQX International. Under the program, one ADR is equivalent to 20 ordinary shares of CMA Corporation Limited. The ADRs trade in the US over-the-counter (OTC) market under the ADR trading symbol CMANY and the CUSIP number is 125663104. Investors can find real-time quotes, disclosure and financial information at www.otcqx.com.
CMA Managing Director Doug Rowe said listing CMA securities on OTCQX would provide the Company with greater exposure to the US investment market.
"CMA has established its American Head Quarters in Chicago and is expanding its metal recycling operations in this area through our Meretec Steel Recycling Facility operating on this site." said Mr Rowe.
"Our strategy is to leverage the Meretec technology to grow our position in the US market. The opportunities for CMA in America are increasing with the need for clean black scrap - we are excited by the interest and demand for our product and the growth opportunity in the years ahead.
"We see great value in making our securities available to US investors and look forward to the first day of trading."
US investment bank, Merriman Curhan Ford, will serve as CMA's Principal American Liaison ("PAL") for OTCQX International, responsible for advising on the company's OTCQX-listing process and providing a comprehensive suite of US capital markets services.
"The OTCQX market continues to attract high-quality businesses, like CMA, that are keen to establish a secondary listing in the United States and benefit from the breadth of US institutional investors," said Stephen Nash, Managing Director and Head of Merriman Curhan Ford's OTCQX Advisory Group.
"With recovering market conditions, now is an opportune time to target US investors, given the abundance of cash on the sidelines - approximately $4 trillion in US money market accounts - which should be put to work as conditions improve. We also see a strong trend toward global diversification, approximately $4.4 trillion in ADRs traded in 2008 and up 34% over ADR trading volumes in 2007."
