Rotary

Rotary: unchg at $1, claws back morning session’s losses. Co files for quotation of ADRs on the OTCQX. No new shares will be issued.
Going by DMX’s ADR experience, the Spore counter would likely see a boost in trading interest, but the ADRs itself would be little traded.
Fundamentally, we see limited impact on the company.

Filed registration to quote ADRs on OTCQX. OTCQX is the mkt for non-US co to trade over-the-counter without compliance costs of SEC requirements. Issue will be non dilutive and each ADR will be represented by 20 ordinary shares. Further details will be announced when listing is approved…

This may create some interest in the stock over nxt few days and generally provides accessibility to US investors. Rotary trades at 8.93x P/E close to avg of 8.53x. Development is puzzling due to US not being a key mkt of Rotary though it might generate interest and liquidity.

*Rotary trades at 8.93x P/E close to hist avg of 8.53x.