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Graphite battery player Talga Group (ASX:TLG) has raised some eyebrows on Monday with its news it will now be trading on the US-based OTXQC market.
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The company pointed to North American investor exposure and an easier way for Americans to get involved with Talga; but on the whole, Australian investors weren’t necessarily impressed – shares sold off Monday, though pared back flat early in the second hour of trades.
In between the lines, the big thing Australian investors want to see is an actual revenue-generating plan from the company, as opposed to the company just hunting around for liquidity.
Also worth noting is Talga remarked it had “graduated” from the U.S. pink sheets market – a market that is wildly unregulated and notorious for being an open arms index that won’t turn anybody away.
So there’s that. Of course, it’s not all Talga’s fault – it has inherited the curse of being a graphite company, which tends to be highly volatile and driven by fickle sentiment as far as niche commodity exposure goes.
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And that’s evident on the 5Y charts. While Talga commanded a share price around $1.50/sh in the early 2020s, these days, it’s below 50cps. That’s where shareholder impatience – or at best, disinterest – with the OTCQX listing comes from on Monday.
TLG last traded at 44cps.
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