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?

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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.

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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.

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