Where are Novonix’s ADRs traded and under what ticker?
Novonix’s listed ADRs are traded on NASDAQ with ticker NVX.
What is an American Depositary Receipt (ADR)?
American Depositary Receipts (ADRs) are negotiable U.S. securities issued by a U.S. bank, referred to as a "depositary bank," that typically represent a non-U.S. company's equity. ADRs trade freely in global markets and facilitate cross-border trading.
ADRs allow non-U.S. companies to make their shares available outside their home markets and allow investors in the U.S. and elsewhere to easily invest in companies on a more global basis.
What is an ADR ratio & how is the ADR price determined?
An ADR program often uses a ratio to reflect a USD price which will differ to its primary home market. One reason being, it ensures the ADR price is relevant to the wider market, including institutional shareholders who have investment mandate considerations.
An ADR ratio provides the number of underlying shares represented by one ADR. One (1) Novonix ADR represents four (4) ordinary NVX shares on the Australian Securities Exchange (ASX). The two securities trade very close to parity once the ADR ratio and foreign exchange aspects are accounted for.
What are the benefits of ADRs to United States investors?
Investors in the United States can benefit from holding ADRs rather than ordinary shares in the issuer's home market, because ADRs trade, clear and settle according to United States market conventions.
ADRs allow U.S. investors to buy non-U.S. securities and hold these in their U.S. brokerage accounts. ADRs also allow access to price and trading information, U.S. dollar dividend payments and corporate action notifications.
How can I purchase Novonix ADRs?
Novonix ADRs can be purchased through a typical broker, just as you would to buy other U.S. securities. You cannot buy ADRs directly from Novonix.
Who is the depositary bank for Novonix’s ADRs?
Is there a cost to hold ADRs?
The Bank of New York Mellon may charge an annual Depositary Service Fee of up to US$0.05 per ADR. This is typically collected from the broker or other intermediary that holds the ADRs on your behalf. Your broker may pass this fee on to you directly or it may be part of the annual fee that you pay to maintain your brokerage account.
Section 5.9 of the ADR Deposit Agreement discloses all applicable fees. A copy can be found by visiting here
What does it cost to exchange ASX-listed ordinary shares or OTC-listed foreign ordinary shares into ADRs?
There will be an issuance fee of up to US$5.00 per 100 ADRs (or portion thereof) charged by The Bank of New York Mellon for the issuance of the ADRs. The exchange of your dematerialised ordinary shares will need to be managed by your broker as ordinary shares need to be transferred electronically to The Bank of New York Mellon prior to the issuance of ADRs. Your selected broker may also levy an administrative charge for managing the exchange process.
Until April 1st 2022, BNY Mellon will waive the ADR issuance fee. Your brokers back office will be able to arrange for this when settling an ADR issuance on your behalf.
I am a current holder of Novonix’s foreign ordinary shares that trade on the OTC Market (OTCQX: NVNXF). What happens to my shares with the establishment of this ADR program?
At the present time, Novonix’s over-the-counter foreign ordinary shares will continue to trade on OTCQX. There is no requirement to convert your OTC market shares to ADRs. Each share will continue to represent one (1) ASX-listed ordinary share of Novonix.
How do I convert my ASX-listed ordinary shares into ADRs?
Converting ASX-listed ordinary shares into ADRs can be done through your broker.
To convert your ordinary shares into ADRs:
- You need to transfer your ordinary NVX shares to BNY Mellon's local custodian, HSBC Bank Australia Limited (SWIFT BIC: HKBAAU2SSYD, CHESS PID: 20057, Safekeeping Account: 011-552130-068). This process is usually completed by your broker via an electronic CHESS transfer, or broker transfer form. Your broker should be able to assist with this.
- HSBC also require the U.S. ADR delivery instructions to accompany any deposit of ordinary shares. This information should be sent via email to email@example.com and should include details of the institution where the ADRs will be delivered to in the U.S. market (i.e., institution / broker name & DTC acct. info).
- Once BNY Mellon receives confirmation from HSBC that your underlying ordinary shares have been deposited, new ADRs are issued and delivered to your nominated U.S. broker, in accordance with the ADR programs “Deposit Agreement”.
Your brokers back office will be familiar with the ordinary share to ADR conversion process. Should your broker have a settlement enquiry, they can contact firstname.lastname@example.org.
How can I convert my OTCQX-listed Novonix foreign ordinary shares to ADRs?
To convert your Novonix F shares to ADRs, please contact your broker. They should be familiar with the process and would need to arrange for the delivery of the underlying ordinary shares which represent your NVNXF to HSBC in Australia as outlined in the response to “How do I convert my ASX-listed ordinary shares or OTC-listed foreign ordinary shares into ADRs?” (above).
What is the difference between a registered holder and a beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of the record. A beneficial holder is one whose holdings are registered in a name other than his or her own, such as the name of the broker, bank, or nominee.
I did not receive a certificate with the purchase of my ADRs. How can I obtain a traditional certificate?
For registered owners, ownership is registered by the depositary bank and is evidenced by an account statement provided by the depositary.
Registered owners can hold physical ADR certificates. Please contact BNY Mellon for more information.
For additional questions about ADRs please contact: