Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) is planning to pursue a listing on the NYSE American exchange through American Depositary Shares (ADSs), in line with its expansion strategy.
Dual initiatives
The company says capital consolidation is also in the works, as part of its efforts to streamline operations and attract international investors.
The dual initiatives are aimed at bolstering Brookside's presence in the United States and broadening its investor base.
The company will maintain its primary listing on the Australian Securities Exchange (ASX), with the ADSs representing a proportionate number of ASX-listed shares.
The ratio for the ADSs will be determined during the listing process.
To facilitate the NYSE American listing, Brookside has begun appointing advisors, external counsel, US accountants and independent experts to ensure compliance with the financial and regulatory requirements.
Capital consolidation
In tandem with the listing effort, Brookside plans to conduct a capital consolidation, pending shareholder approval.
This consolidation will reduce the number of outstanding shares by a ratio of 1-for-50, leaving some 95.5 million fully paid ordinary shares in circulation.
The move is expected to enhance the company's attractiveness to international investors and align with its broader strategic goals. The consolidation will also apply to share rights issued under Brookside’s securities incentive plan.
Brookside Energy will provide further updates on both the listing and capital consolidation as key milestones are reached.
Shareholders will vote on the consolidation at an upcoming General Meeting, with a notice of the meeting to be lodged on the ASX platform once approved.
The board emphasised that these initiatives reflect the company’s commitment to delivering long-term value and positioning itself for growth in the US market.
US footprint expansion
Brookside managing director David Prentice said: “This is a pivotal moment for Brookside as we take meaningful strides to expand our footprint in the US market through a proposed listing on the NYSE American exchange.
“The board’s decision to pursue this listing, alongside a capital consolidation, aligns with our strategic objective to enhance our US visibility and provide better access to a broader base of international investors.
“We are confident that these initiatives will position the company for long-term growth and create significant value for our shareholders as we continue to deliver on our mission to deliver best-in-class financial returns for our shareholders through all phases of commodity price cycles by identifying and efficiently developing oil and gas reserves.”