16 July 2012
Chatham Rock Phosphate is planning to seek a dual listing of CRP shares on the Toronto Stock Exchange secondary (venture) board (the TSX.V).
Directors have resolved to adopt this approach, which effectively separates the listing process from the normally associated financing, usually described as an Initial Public Offer or IPO.
CRP has sufficient shareholders required to dual-list on a number of overseas exchanges without undertaking an IPO.
“Adverse market conditions still prevailing in overseas markets continue to delay the company’s earlier decision to undertake an IPO,” Managing Director Chris Castle said. “However the directors remain determined to provide a more efficient market for the company’s shares.”
Mr Castle said the Canadian market is the most logical market to join, given the number of fertiliser companies already listed there.
“It will provide access to an investor market familiar with our industry and provide investors with a basis for comparison.”
The process to dual list requires the filing of an application, the preparation of both an information memorandum similar to a prospectus and a technical report. As these reports were already being prepared in mid 2011 in anticipation of the IPO, they simply require updating, and this process is now well underway.
“We are also discussing, with a number of parties, the appointment of a broker sponsor who will also need to prepare a report.
“The dual listing should make it easier to continue to source funding by means of private placements in the short term. We still intend to undertake an IPO when market conditions improve,” Mr Castle said.
A number of other New Zealand companies are listed or intend to list on the TSX.V.
Managing Director CRP
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