Mr. David Jan reports
ENTREE RESOURCES ANNOUNCES INTENTION TO VOLUNTARILY DELIST FROM NYSE AMERICAN, APPLIES TO HAVE SHARES TRADE ON OTCQB
Entree Resources Ltd. intends to file a Form 25 (Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act of 1934) with the U.S. Securities and Exchange Commission to voluntarily withdraw its common shares from listing on NYSE American LLC. The Company anticipates filing with the SEC a Form 25 on September 20, 2019 and expects the last day of trading on NYSE American to be on or about September 30, 2019 (approximately 10 days after filing the Form 25).
The Company has been evaluating its options with respect to its U.S. listing for some time. Following receipt of notice from NYSE American that the Company is not in compliance with the continued listing standards as set forth in Section 1003(a)(i), (ii) and (iii) of the NYSE American Company Guide (see the Company's news release dated August 16, 2019), and after careful consideration and a review of several options, the Board of Directors has determined that a voluntary delisting from NYSE American, and applying for a listing on a more suitable U.S. trading platform, is in the Company's best interests. Having regard to the business, finances and assets of Entree, the price of Entree's common shares on NYSE American, commodity prices, and the political and economic climate in which Entree is currently operating, the Board of Directors is of the view that the potential negative impact to the Company and its shareholders from having to undertake dilutive corporate or other actions for the primary purpose of regaining compliance is not warranted, particularly when there are other lower cost trading platforms that provide similar liquidity and transparency for U.S. shareholders.
The Company's shares will continue to trade on the Toronto Stock Exchange ("TSX"). The Company has also applied to have its common shares trade on the Over-the-Counter OTCQB Venture Market (the "OTCQB") and anticipates launching on the OTCQB the same date its common shares are delisted from NYSE American.
Stephen Scott, President and CEO of Entree, comments, "I believe this move to the OTCQB is very positive for Entree and its shareholders, as it offers the benefits of being publicly traded in the U.S. at a significantly lower cost and complexity than a U.S. exchange listing. Many of Entree's peers have already successfully made this move."
As a verified platform with efficient access to U.S. investors, OTCQB helps companies build shareholder value with a goal of enhancing liquidity and achieving fair valuation.
The Company will continue to file reports with Canadian securities regulators on SEDAR at www.sedar.com and with the SEC on EDGAR at www.sec.gov following the voluntary delisting.
ABOUT ENTREE RESOURCES LTD.
Entree Resources Ltd. is a well-funded Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world's largest copper-gold projects - the Oyu Tolgoi project in Mongolia. Entree has a 20% or 30% carried participating interest in the Entree/Oyu Tolgoi joint venture, depending on the depth of mineralization. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill are major shareholders of Entree, holding approximately 19%, 9% and 8% of the shares of the Company, respectively. More information about Entree can be found at www.EntreeResourcesLtd.com.
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