Why is the American Pacific Borates (ASX:ABR) share price sliding 6% today?

American Pacific Borates was planning to achieve dual listing by December. So, how's that going?

Bored man looking at his iMac with his head held in one hand feeling dismayed at AGL Energy's lower dividend

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The market is bidding the American Pacific Borates Ltd (ASX: ABR) share price lower on Monday after the company pushed back its US listing.

The company released an update on its plan to list on the Nasdaq index this morning.

In October, American Pacific Borates told the market it might achieve dual listing by late December. However, it's now certain it won't be floating on the Nasdaq index until early 2022.

At the time of writing, the American Pacific Borates share price is $2.23, 6.3% lower than its previous close.

Let's take a closer look at today's news from the borates and lithium explorer.

American Pacific Borates share price's struggles

The American Pacific Borates share price is in the red after the company earlier gave a market update on its plan to move its primary listing from the ASX to the Nasdaq.

As part of the move, American Pacific Borates will be renamed 5E Advanced Materials.

To make the switch, all American Pacific Borates stock will be transferred to the newly established 5E Advanced Materials. 5E will then issue shares and CHESS Depositary Interests (CDIs) to American Pacific Borates shareholders.

American Pacific Borates shareholders can choose to receive 1 5E share for every 10 they hold in American Pacific Borates, or 1 5E CDIs for every American Pacific Borates share they own.

According to the company, the US market is a more appropriate home for American Pacific Borates, as all its assets are in the nation.

Additionally, it expects to be valued higher in the US due to the nation's large pool of investors. The company also believes it will be able to access lower-cost debt by being a US-listed entity.

Shareholders will vote on the scheme in late December or early 2022.

Previously, the company stated its stock will trade on Nasdaq under the ticker FEAM. It will adopt the ticker 5EA on the ASX.

Today's news from American Pacific Borates follows last week's announcement of a successful placement. The placement raised $37 million for American Pacific Borates by issuing new shares at $2.10 apiece to 4 institutional investors.

The American Pacific Borates share price fell 5% on the back of last week's announcement.

At that point in time, the company still believed its Nasdaq listing could occur in December.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Materials Shares

ASX mining in April 2024: The best stock to buy right now

Analysts at Bell Potter think this mining stock could offer big returns.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

The Core Lithium share is down 27% in March: What's next?

Times have been hard for this lithium miner's shareholders. Will things improve?

Read more »

A female worker in a hard hat smiles in an oil field.
Materials Shares

Why it's a great day to own BHP shares

The Big Australian's shareholders have reason to smile on Thursday.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Materials Shares

Why did this ASX All Ords stock just crash 36%?

Investors have been hitting the sell button on Tuesday.

Read more »

A miner in a hardhat makes a sale on his tablet in the field.
Materials Shares

Lake Resources share price surges on sustainable lithium news

Lake Resources shares are enjoying a welcome lift today.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Mineral Resources shares fall despite 'exceptional results'

This mining and mining services company has provided an update on its energy business.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Are Pilbara Minerals shares in the buy zone or overvalued?

Here's what Bell Potter is saying about the lithium giant.

Read more »

Three guys in shirts and ties give the thumbs down.
Materials Shares

3 reasons to sell Core Lithium shares

This lithium miner's decline may not be over according to Goldman Sachs.

Read more »