U.S. Geothermal Inc. files for voluntarily delisting from Toronto Stock Exchange
Toronto Stock Exchange, Toronto/ON, Canada (source: flickr/ joseph a, creative commons)
Alexander Richter
11 Dec 2015
Geothermal developer U.S. Geothermal Inc. has announced its decision to delist from the Toronto Stock Exchange, naming the limited trading volume and more trading via its New York Stock Exchange listing.
It seems like the days for geothermal are coming to an end on the Toronto Stock Exchange. After the hopeful entry of junior geothermal companies onto the Toronto Stock Exchange (Venture Exchange) around 2005, the strong IPOs off Magma Emergy (now Alterra Power) and Ram Power (now Polaris Infrastructure) and the following consolidation of companies such as Western GeoPower and Sierra Geothermal into Ram Power, most of the stock remaining on the TSX are trading at a fraction of what they used to be or simply diverted away from geothermal.
So it might be no surprise today, that U.S. Geothermal Inc. (GTH) has now announced that “it has applied for the voluntary delisting of the Company’s securities from the Toronto Stock Exchange (“TSX”). It is expected to take effect as of the close of trading on Dec 31, 2015.
The Company’s shares will continue to trade under its existing stock symbol “HTM” on the NYSE MKT LLC (“NYSE”).
The decision to voluntarily delist from the TSX is due to the very limited trading volume of the Company’s shares on the TSX over a sustained period, with more than 97% of trades in the Company’s securities over the past 24 months occurring on the NYSE, and only 3% occurring on the TSX. As such, the Board considers that the regulatory and other costs (listing, compliance, etc.) of the Company in maintaining the additional TSX listing should not be continued.
“We are executing our growth strategy which is very focused on delivering value to our shareholders.” said Dennis Gilles, CEO of US Geothermal. “We are also examining all costs and expenses and this is a prudent step which will favourably impact our bottom line.”
Canadian shareholders will continue to trade their shares on the NYSE through Canadian broker-dealers who have U.S. registered broker-dealer affiliates.
Following delisting from the TSX, the Company intends to apply under Canadian securities laws for an order that it cease to be a reporting issuer in Canada. Until such order is granted, the Company will continue to comply with its applicable Canadian continuous reporting obligations.”
Source: Company release via Marketwatch
