Lithium Universe broadens investor base and boosts liquidity with Frankfurt and OTC listings
Lithium Universe (ASX: LU7) has opened the door for a significant number of potential new investors to join its “closing the gap” strategy with the completion of listings of its stock in Europe and North America.
The company has added the Frankfurt Stock Exchange – where it will be quoted under the ticker FRA: KU00 – and the US-based OTC Markets Group platform (OTC: LUVSF) to its ASX listing.
Operated by Deutsche Börse AG, the Frankfurt Stock Exchange serves as a hub for international investors and companies and is one of the world’s largest trading centres for securities.
The OTC is the largest trading platform in North America for over-the-counter securities, providing transparent and efficient marketplaces for a diverse range of US and international companies.
Diversified investor base
Chair Iggy Tan said the new listings will allow Lithium Universe’s securities to be readily accessed by European and North American investors.
“Both quotations will expand our access to capital markets, enhancing our ability to raise funds from a more diverse investor base,” Mr Tan said.
“It may also facilitate trading of our shares in local currencies and during local market hours, increasing liquidity and investor participation.”
“This initiative is a key part of our growth strategy, aimed at fostering long-term value for our shareholders and strengthening our presence in international markets.”
Lithium gap
The company’s strategy is aimed at closing the lithium conversion gap in North America via a number of development areas related to its Bécancour refinery project in Canada.
The company is confident that a surge in North American battery manufacturing is approaching, with over 20 major manufacturers planning to deploy an estimated 1,000 gigawatts of battery capacity.
It is also confident that there are a number of supply gap issues looming regarding North America’s access to the necessary materials and processing technology to meet that demand as electric vehicle uptake grows.
Operational stability
As part of its strategy, Lithium Universe’s Bécancour refinery is designed to be able to process spodumene feedstock from global sources such as Australia, Brazil and Africa – overcoming local supply shortages.
This will also assist in the management of market fluctuations, ensuring operational continuity and stability while Canada’s supply chain develops.
Ongoing test work has successfully demonstrated the production of battery-grade lithium carbonate from various spodumene concentrates using the Bécancour refinery design.
A CO2 purification circuit has also been designed to achieve significantly low sodium and sulphate impurities, well below industry thresholds.