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Phynova to join the US International OTCQX trading platform
Phynova Group plc
("Phynova")
Phynova to join the US International OTCQX trading platform
Promises cost-effective access to US investor liquidity pool
Phynova Group plc (AIM: PYN), the developer of prescription pharmaceuticals derived from plants used in Chinese medicines, today announces that in April it will establish a sponsored level one American Depositary Receipt ("ADR") programme on the US International OTCQX platform under the symbol PHNVY. Phynova will issue ADRs in respect of up to 25% of its issued share capital and each ADR will represent 10 ordinary Phynova shares. Phynova is retaining its primary listing on the UK AIM market.
The International OTCQX is a new electronic platform for non-US companies that are already listed on certain qualifying international exchanges, including the UK´s AIM market. In an interview last year R. Cromwell Coulson, Chairman and CEO of Pink Sheets, LLC, which operates International OTCQX, said: "It´s imperative to create a listing process that´s cost-efficient for smaller companies. We looked at the London Stock Exchange´s successful AIM market and decided to offer a US answer". AIM and other similar markets have deliberately adopted a simplified regulatory climate in order to attract smaller fast-growing companies. So long as an OTCQX-traded company complies with the regulatory environment of its primary exchange, it is relieved of the obligation to undergo Securities and Exchange Commission ("SEC") registration and reporting. Many commentators have pointed out that compliance with SEC regulations, including adopting US GAAP accounting and fulfilling the requirements of the Sarbanes-Oxley Act, is a burden that makes trading in the US prohibitively expensive for many international companies, especially smaller businesses.
Robert Miller, Phynova´s CEO, said: "We see OTCQX as a unique and valuable opportunity. We will be one of the first AIM-listed stocks to have our ADRs traded on this new platform. We believe OTCQX will provide cost-effective access to US investors, who have shown a growing appetite for investing in non-US securities. As of 30 September 2007, US investments in foreign equities amounted to $4.9 trillion, 22% of all US equity investments, against less than 9% a decade ago . We expect Phynova´s focus on the fast-growing Chinese pharmaceutical market to be of particular interest to US investors and we are optimistic that US interest will translate into improved liquidity in our shares."
Phynova has appointed The Bank of New York Mellon to serve as Principal American Liaison ("PAL") for its OTCQX quotation. The Bank of New York Mellon will be responsible for maintaining Phynova´s Level one ADR programme as well as advising on disclosure requirements and communications with the US market. The Bank of New York Mellon, the leading global depositary for Depositary Receipts, will also act as depositary for Phynova´s ADRs.
- Ends -
For further information, please contact:
Phynova Group PLC +44 (0) 1993 880700
Robert Miller, Chief Executive Officer www.phynova.com
Nominated Adviser:
Nabarro Wells & Co. Limited +44 (0) 20 7710 7400
Marc Cramsie
Broker:
Evolution Securities China Limited +44 (0) 20 7220 4850
Barry Saint
The Bank of New York Mellon +1 (212) 815 2077
Jason Paltrowitz
Media enquiries:
Abchurch Communications +44 (0) 20 7398 7700
Peter Laing/Ashley Tapp/Stephanie Cuthbert
ashley.tapp@abchurch-group.com
www.abchurch-group.com
Notes to Editors:
About Phynova
Phynova is a UK company developing prescription pharmaceuticals derived from plants used in Chinese medicines. Phynova is focused on viral and metabolic diseases and cancer. Phynova´s lead product for hepatitis C has now completed a Phase I/II trial in the US and the Phase IIb trial is scheduled to commence in the first half of 2008. Two further products, for fatty liver disease and post-operative ileus, are targeted for entry to the clinic over the next six months and there are a further four products in preclinical development. For further information please visit www.phynova.com.
About International OTCQX
Launched in March 2007 and operated by Pink Sheets, LLC, the International OTCQX provides a gateway to U.S. securities markets for international companies that are listed on a qualified international exchange and which undertake to provide ongoing disclosure (in English) to U.S. investors. The OTCQX distinguishes the reputable international issuers from the 8,000 over-the-counter (OTC) securities traded in the U.S. Only leading companies that have substantial operating businesses and provide credible disclosure to the public are eligible for inclusion on the premium-tier International OTCQX. Each company listed on International OTCQX must appoint a Principal American Liaison (PAL) to act as sponsor and to ensure compliance with disclosure regulations. Major non-US companies whose shares are now traded on the OTCQX platform (sometimes delisting from other US exchanges) include British Gas, Nestlé, Roche, Tate & Lyle, BASF and Akzo Nobel. For more about International OTCQX, visit www.otcqx.com.
About Pink Sheets, LLC
Pink Sheets, LLC is the leading electronic inter-dealer quotation system, trading technology and financial information provider for the over-the-counter (OTC) securities markets. Its centralized information network includes services designed to benefit market makers, issuers, brokers and OTC investors. Pink Sheets information enhances the efficiency of OTC trading, provides better executions for OTC investors and improves the capital formation process for OTC issuers. For more information visit the Pink Sheets website at www.pinksheets.com.
28/03/2008
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