Azure Dynamics Corp., the Oak Park electric and hybrid truck powertrain developer, said it would hold a special meeting of its shareholders Aug. 19 to ask shareholder approval of a consolidation of its shares in order for Azure to pursue a dual listing on a United States stock exchange such as the Nasdaq Global Market.
Originally incorporated in Canada, Azure trades on the Toronto Stock Exchange under the ticker symbol AZD and on the U.S. over-the-counter market under the symbol AZDDF. The meeting will be held at Azure’s 14925 W. 11 Mile Road in Oak Park, at a time to be announced later.
“With operations in Canada, Europe and the United States, Azure is becoming a more global company with international investors, partners and customers,” said Scott Harrison, CEO of Azure. “This proposed share consolidation will allow the Company to pursue a Nasdaq stock exchange listing, which, if successful, may improve visibility and liquidity by broadening the company’s investor base and increasing its exposure to larger financial markets. The Nasdaq stock market is widely considered to be a leading stock exchange for companies advancing new technologies to the market.”
Azure regularly reviews the potential benefits of seeking a listing on additional stock exchanges and, having explored the options in this regard, has determined to commence the listing application process on the Nasdaq Global Market. Azure intends to retain its listing on the Toronto Stock Exchange. A dual listing of this type has enabled some TSX-listed companies to expand their investor base, increase the liquidity of their equity securities and reduce their cost of capital.
The company expects to realize a number of benefits from a listing on a U.S. stock exchange, such as the NASDAQ Global Market, including:
* Access to a larger domestic as well as global financial market;
* Expanded exposure to additional investors;
* Greater coverage by industry and financial analysts; and
* The ability to disclose the Company’s financial performance, business achievements, and other important information to a larger audience.
Azure’s listing application process with the Nasdaq Global Market will be subject to satisfaction of a number of listing criteria as well as approval by Nasdaq and applicable securities regulatory approvals. Azure’s current per share price does not meet the Nasdaq listing standards and a consolidation of the Company’s shares would be required in order to meet such listing requirements and complete a Nasdaq listing. The Board of Directors of Azure has therefore determined that it is in Azure’s best interests for the Board to have the authority to implement a consolidation of Azure’s issued and outstanding common shares.
At the meeting, Azure shareholders will be asked to approve a share consolidation within a proposed range. If approved by the shareholders, as well as the applicable stock exchange and securities regulatory approvals, the share consolidation will not take place unless further authorized by the Board of Directors on a date and at a specific consolidation ratio determined by the Board within the range approved by the shareholders.
Further details, including the proposed consolidation ratio range, will be set out in a management information circular to be delivered to shareholders and filed on Canada’s SEDAR online stock information database before the meeting.
More at www.azuredynamics.com.