Piedmont Lithium Ltd (ASX: PLL) shares were racing higher today following news of a recent court decision involving the company.
At the close of trade today, the Piedmont share price was trading 12.77% higher at $1.06. In earlier trade, Piedmont shares reached an intraday high of $1.085 – a new all-time high for the company.
Let's take a look at what the company announced.
What did Piedmont report?
In a statement released to the ASX last night, Piedmont announced the Supreme Court of Western Australia had approved its decision to re-domicile in the United States. The planned move is set to take place via a newly formed company, Piedmont Inc, acquiring Piedmont shares.
Piedmont is a dual-listed company – it trades on both the ASX and NASDAQ. The company intends to list the new Piedmont Inc on the NASDAQ. Piedmont Inc will then buy all shares, on both markets, under the scheme.
Shareholders will receive either: one US Chess depository interest (CDI) or one share in Piedmont Inc for every share they own. Shareholder allotment of either CDIs or Piedmont Inc shares will depend on whether they own shares on the ASX or NASDAQ, respectively.
The CDIs can be traded on the ASX when available.
As part of the court's decision, Piedmont will send a booklet containing all relevant information to shareholders. Owners will then decide whether or not to approve the move. The lithium company will also send the booklet to the ASX for publication.
Due to the COVID-19 pandemic, electronic voting will be available for shareholders.
How has the Piedmont share price been performing?
As previously reported, demand for lithium has been surging in recent months. And higher demand means higher prices. One of the main drivers of this demand is the increasing uptake of electric vehicles, which require the use of lithium in the manufacture of their batteries.
As a result, the Piedmont share price has been going gangbusters. Only six months ago, Piedmont shares were selling at just 9 cents. Investors who bought in at that time would now be sitting on gains of more than 1,000%.
Similarly, the NASDAQ Piedmont share price has also been performing well. It jumped by around 9.5% on today's news and is up more than 40% in the last five days of trading.
Based on the company's current ASX share price, it has a market capitalisation of $1.5 billion.
