Nightingale explores transfer to Nasdaq Helsinki main list and OTC trading in the US

Translation: Original published in Finnish on 11/27/2024 at 3:45 pm EET.

With the possible transfer and OTC cross-trading, the company aims, among other things, to improve the liquidity of the stock and to broaden its international shareholder base. As Nightingale has already made the transition to IFRS, we expect the transition to the main list to be a relatively straightforward process. The company expects the transition to occur in the first half of 2025, and given the press release, we believe it is highly likely.

List transfer and trading in the US can help build international business

Nightingale announced that its Board of Directors has decided to investigate the possibility of transferring its series B shares to the main list of Nasdaq Helsinki and possible cross-trading on the OTC market in the United States. With the planned move, the company aims, among other things, to improve the liquidity of the stock and expand its international shareholder base. Nightingale moved its reporting to IFRS already in 2022, which we see as a step towards strengthening the company's credibility with international clients and investors. The announcement of the transfer to the Nasdaq Helsinki main list and the entry to the US OTCQX market continues along this line.

Nightingale has entered a wide range of international partnerships, many of which have been in the US, so we do not think it is far-fetched to expect investor interest in the US market. On the other hand, being tradeable on the local market can increase the company's credibility among its existing and potential new local partners. Nightingale is well capitalized and will not consider issuing new shares in connection with the proposed move.

OTC Markets operates an exchange in the United States for securities not listed on a national exchange in the United States. According to Nightingale, the OTC market reaches US investors and has the advantage that entry into the OTC market is a simple and cost-effective process. The OTCQX is the highest quality tier of OTC Markets.

Of course, the move has no impact on the fair value of the company or our view of the stock, although the increased liquidity that the move would provide would in principle enhance the price formation of the company's stock.