Market Herald logo


Be the first with the news that moves the market
  • Battery specialist Novonix (NVX) is tossing up the idea of selling shares on over-the-counter (OTC) markets to keep up with international demand
  • OTC markets allow shares to be traded directly between investors rather than through exchanges like the ASX or NYSE
  • While this means the trading is less regulated and transparent, it can make international trades easier
  • Novonix said today it is investigating the idea of trading its shares on the New York-based OTCQX Best Market, which is operated OTC Markets Group
  • With the prospect of more U.S. and European tech investors coming on board, Novonix shares had another day of healthy gains
  • Today, shares gained just over seven per cent to close worth $1.30 each — marking an increase of over 88 per cent in the past two days

Battery specialist Novonix (NVX) is tossing up the idea of selling shares on over-the-counter (OTC) markets to keep up with international demand.

The company has had a stellar few weeks on the ASX, with shares gaining some 400 per cent since the start of May. However, the company said today it has been receiving some major interest from North American and European investors since the start of June.

As such, the company said it is investigating the possibility of trading on the OTCQX Best Market in North America.

What is an OTC market?

Simply put, over-the-counter markets, sometimes referred to as off-exchange trading, allow shares to be traded between investors directly rather than through a formal exchange.

This means shares can be transferred from one party to another without the same regulations and transparency that would be required for shares on the ASX or NYSE, for example. The price of shares traded on OTC markets does not need to be publically disclosed.

While OTC markets are generally seen as riskier and more prone to manipulation than exchange-traded shares, they come with perks as well.

Among these — and likely at the forefront of Novonix’s reasons for considering OTC quotation — is easier trading between international parties.

Novonix is considering trading its shares on the OTCQX Best Market, headquartered in New York. This OTC market is operated by OTC Markets Group, which also operates the Pink Open Market. Novonix shares are already trading on an unsolicited basis on this market.

Fortescue Metals, PointsBet, and Starphama are some of the other ASX-listed entities who also trade on the OTCQX.

Why the upswing in demand?

The driving force behind the most recent surge in Novonix’s share price is its now-patented single crystal cathode production technique.

The technique is said to dramatically improve the battery life of lithium-ion batteries, which is big news in a world shifting to electric vehicles.

The company revealed yesterday that the technique has been patented, prompting a 75.36 per cent surge in the price of NVX shares.

While Novonix has not confirmed the OTC trading and said it does not intend to issue further shares to seek quotation on the OTCQX, the company’s share price stacked on some more gains today as investors lick their lips at the prospect of U.S. tech investor interest.

Novonix shares closed 7.44 per cent higher at $1.30 per share. The company has a $258.5 million market cap.

NVX by the numbers
More From The Market Herald
Salt Lake Potash (ASX:SO4) - CEO, Tony Swiericzuk

" Salt Lake Potash (ASX:SO4) enters administration

Salt Lake Potash (SO4) has gone bust and entered voluntary administration.
SRG Global (ASX:SRG) - Managing Director, David Macgeorge

" SRG’s (ASX:SRG) Bugarrba JV secures $25m contract with Fortescue (ASX:FMG)

SRG Global (SRG) has updated the market on a new contract secured by its Bugarrba Aboriginal joint venture (JV).

" Auroch Minerals (ASX:AOU) tags multiple targets at Nepean nickel project

Auroch Minerals (AOU) has identified multiple drill targets at the Nepean Nickel project in Western Australia following completion of down-hole geophysical surveys.

" Tesoro (ASX:TSO) reports further ‘high-grade’ zones at Ternera

Tesoro Resources (TSO) says it is continuing to discover and define high-grade zones at the Ternera Gold Deposit within the El Zorro Gold