One of the best performers on the Australian share market on Tuesday has been the PuriflOH Ltd (ASX: PO3) share price.
In afternoon trade the air and water treatment company's shares are up over 17% to $3.72.
This means the PuriflOH share price has gained a massive 575% since this time last year.
Why is the PuriflOH share price rocketing higher today?
The catalyst for this latest gain was an announcement this morning which revealed that the company's board has approved an Over the Counter (OTC) Listing in North America.
PuriflOH is targeting an OTCQX listing, which is the top tier of the three marketplaces provided by the OTC Markets Group for the over-the-counter trading of stocks.
It facilitates trade in small and micro cap stocks, though also includes well known international names such as Fortescue Metals Group Limited (ASX: FMG) and Adidas.
The company will now be undertaking final selection processes for a Principle American Liaison (PAL) sponsor and a suitable market maker.
It expects to make these decisions in the coming weeks. After which, PuriflOH has been advised that an OTC listing should be achieved within 6-8 weeks.
Why the OTC markets?
Management believes that a listing on OTC markets offers the ability and utility for United States-based investors to directly trade in PuriflOH without the complexity of establishing bank accounts and broking arrangements in jurisdictions outside of the country.
Thus, this listing will provide it with exposure to millions of new small cap investors.
In addition to this, the release explains that a study has shown that international companies with a primary listing outside the US, experienced a 28% increase in trading volume by number of shares within their home market after joining the OTCQX Best Market.
Management said: "We believe the Company's strategy and US based operation and commercial focus is a strong match for the provision of a trading platform through the OTCQX and that this will be well received by investors."
And that the board "believes the timing is right to seek listing on the OTCQX ahead of the company commencing the commercialization of its FRG platform."
The FRG platform has been designed to purify contaminated indoor air, clean water, and sterilise surfaces. Judging by the strong share price rise over the last 12 months, some investors appear to believe the platform has a lot of potential.
Also rising strongly over the last 12 months have been Avita Medical Ltd (ASX: AVH) and Jumbo Interactive Ltd (ASX: JIN) shares with gains of 483% and 352%, respectively.
