Perth- based Orbital Corporation announced today that it has applied for the listing of its American Depositary Receipts on the New York Stock Exchange's subsidiary Amex board for small companies.
Perth- based Orbital Corporation announced today that it has applied for the listing of its American Depositary Receipts on the New York Stock Exchange's subsidiary Amex board for small companies.
Formerly Orbital Engine Corporation the company was one of WA's highest flying companies with a blue chip register which included companies such as BHP.
The company was founded by inventor Ralph Sarich used to be listed on the NYSE's main board until it was delisted from the US exchange in 2004.
The company developes technical solutions and services to producers, suppliers, regulators and end users of engines and engine management systems.
Orbital announced today that to meet the minimum share price requirements in connection with its NYSE Amex listing application it has affected a reverse split to change the ratio of ADR's to ordinary shares from 1:40 to 1:160.
The shares will commence trading on the OTC Bulletin Board at the new ratio from 19 April 2010. Letters of transmittal have been sent to registered ADR holders to affect the exchange of their certificates representing pre-reverse split ADRs for new certificates representing post-reverse split ADRs.
The Company has also amended the Deposit Agreement with the Bank of New York Mellon to incorporate changes to our ADR program to allow the ADR's to become Uncertificated American Depositary Shares and for the trading and registration of ownership of Orbital's ADRs through the Direct Registration System.
"We are pleased to be taking this initiative to move from the OTC Bulletin Board to list on the NYSE AMEX" said Terry Stinson, managing director and chief executive officer of Orbital Corporation.
"If this application is successful, this listing will help to raise our profile in the United States and will provide improved stock liquidity for our United States based ADR holders who represent approximately 20% of our shareholder base".
The Orbital engine was invented by Ralph Sarich in the early 70s, and he won ABC TV's inventor of the year in 72.
The company was floated in 1984, with BHP taking a 25 per cent stake, and the company also listed on the New York Stock Exchange.
Mr Sarich sold out of the business in the early 1990s at over $3 a share, making him one of Australia's richest men.
But despite hoping the orbital engine would revolutionise the internal combustion engine, it never won commercial backing from the major car makers and was effectively shelved.
Orbital then focused on fuel injection systems for boats and motorcycles.
BHP sold the last of its shares (for under $1 a share) in 1998 and 1999.
Former federal liberal leader Andrew Peacock, who became a director in 2001, also resigned from his position as a non-exec in late 2002
After racking up $480m in losses over 10 years, it was finally delisted from the NYSE in mid 2004 after failing to meet the exchange's minimum market cap threshold of $US50m for an extended period, and shifted its US listing on to the less regulated OTC bulletin board.
Ironically it was delisted from the NYSE the same year that it posted its first profit in over a decade ($3.4 million).
NYSE Amex is a platform launched by NYSE Euronext after acquiring the former American Stock Exchange in late 2008.
NYSE Amex is designed to meet the demands of the small-to-medium size enterprises that do not necessarily meet NYSE's higher listing standards.
