Tinybeans (ASX:TNY) share price rises on Nasdaq update

This small cap tech share has taken a major step towards listing on the Nasdaq…

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The Tinybeans Group Ltd (ASX: TNY) share price is rising on Monday morning.

At the time of writing, the family-focused social media platform company’s shares are up 3% to $1.25.

Why is the Tinybeans share price rising on Monday?

The rise in the Tinybeans share price today has been driven by the release of an announcement relating to its plan to list on the Nasdaq index.

According to the release, the company has appointed Grant Thornton Audit as its new auditor with immediate effect.

It made the move in support of its planned listing on Nasdaq. This is because the Nasdaq requires a company to have an auditor that is registered with the Public Company Accounting Oversight Board in the United States.

Why is Tinybeans listing on the Nasdaq?

Tinybeans advised that its decision to list on a major U.S. exchange is aligned with its increasing operational and revenue shift to the United States, as well as its subscription growth strategy.

But don’t panic, nothing will happen with your Tinybeans shares if you’re a shareholder. Tinybeans intends to maintain its primary listing on the ASX and expects to be dually listed on the ASX and Nasdaq.

Tinybeans CEO, Eddie Geller, commented: “Tinybeans has had a strong presence in the United States ever since we established Tinybeans USA in New York in 2014. Today, nearly 100% of our revenue—and most of our brand partners and subscribers—are based in the U.S., helping to double our revenues for FY21. Grant Thornton is already engaged in the independent audit of our FY21 results. We look forward to releasing our full year results in late August.”

The Tinybeans share price has been a strong performer over the last 12 months. Following today’s gain, its shares are now up over 41% since this time last year.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Tinybeans Group Ltd. The Motley Fool Australia has recommended Tinybeans Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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