The Tinybeans Group Ltd (ASX: TNY) share price is reaching for the sky today after the company announced it was eligible for United States OTC listing.
In closing trade this afternoon, shares in the mobile and web-based social media platform are up 18.4% to $1.80.
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What did Tinybeans announce?
The Tinybeans share price is shooting higher after the company reported a favourable decision that will extend its reach to US-based investors.
In its release, Tinybeans advised that its OTCQX-quoted ordinary shares are now eligible for electronic clearing and settlement through the Depositary Trust and Clearing Corporation (DTCC) in the US. They will be listed under the code of OTCQX: TNYYF and operate in the same class as ordinary shares.
DTCC is a subsidiary of the Depositary Trust Company (DTC) that manages the electronic clearing and settlement of publicly-traded companies. Securing DTC eligibility means that Tinybeans can be traded in US dollars and in the North American time zone. This promotes a simplified trading process for the company as well as enhancing its liquidity of registered shares.
A range of online brokerage firms such as Ameritrade, Fidelity Investments, Charles Schwab and E*TRADE all offer OTCQX trades.
CEO commentary
Tinybeans CEO Eddie Geller hailed the positive result, saying:
I am delighted to share the news that Tinybeans Group now has DTC Eligibility. We receive requests almost daily from US investors who have had difficulty buying our stock and are extremely pleased to announce that we have obtained DTC eligibility, effective immediately. This means the company's stock can now be traded in USD for those who wish to do so in the American time zone.
This represents an important step forward in increasing liquidity, broadening our shareholder base and building a strong presence for our company within the US capital markets. We would like to thank our DTC filing agent Glendale Securities, our transfer agent AST and our OTC Sponsor and legal advisor Rimon Law for their efforts
About the Tinybeans share price
In the past 12 months, the Tinybeans share price has increased by 26%. The company's shares were hit hard during the COVID-19 rout in March last year, falling to a low of 51 cents. However, they have accelerated since October to touch a 52-week high today.
Based on the current share price, Tinybeans has a market capitalisation of around $81 million.
