Orbital Moves American Depository Shares to the OTC Bulletin Board
June 28 2004 - 10:06AM
PR Newswire (US)
Orbital Moves American Depository Shares to the OTC Bulletin Board
PERTH, Australia, June 28 /PRNewswire-FirstCall/ -- Orbital Engine
Corporation Limited today announced that it intends to move the
trading of its American Depository Shares (ADSs) in the United
States to the OTC Bulletin Board (OTCBB), following the decision of
the New York Stock Exchange (NYSE) to no longer provide trading for
the ADSs, from 1st July 2004. There is no change to the Company's
listing on the Australian Stock Exchange (ASX). The Chief Executive
Officer of Orbital, Mr. Peter Cook commented: "The NYSE decision
has been made on the basis of Orbital's relatively small size. We
are simply too small to meet the NYSE's internal requirements of
market capitalisation and shareholders' equity. The NYSE has no
concern over any matters of corporate governance, underlying
trading, prospects or reporting. Our paramount objective has been
to provide an alternative, effective and seamless trading market
for our American ADS holders." Orbital has been operating for the
last eighteen months with the NYSE, under a plan to meet their
listing requirements. Despite progress, these have not been totally
met within the required time frame. "Despite the excellent
relationship we have with the NYSE, the increased regulatory
environment has created a complexity and cost in being dual listed
on both the ASX and the NYSE, that is not justifiable for such a
small company. Other companies, most much larger than ourselves,
have seen the need to take this step. However, our underlying
commercial prospects are not changed by this decision and the
improved financial position we have recently reported continues to
add value for Orbital's shareholders," Mr. Cook added. For any US
shareholder, the process for buying or selling Orbital's ADSs
remains unchanged, simply by advising their normal stock broker of
their requirements. There is no need to deal directly with OTCBB,
although quotations for securities can be obtained from its web
site. Susquehanna Specialists Inc. will be Orbital's initial market
maker on the OTCBB and the Bank of New York will continue to
administer Orbital's ADS facility. Both organisations have had a
long association with Orbital's securities in the USA. For those
holders of ADSs who may be unfamiliar with the OTCBB, it is a
NASDAQ operated quotation service for securities not listed on a US
national exchange. Further information can be obtained from the
OTCBB web site at http://www.otcbb.com/ or from Orbital's web site
at http://www.orbeng.com/ Outlook In February 2004 Orbital
announced a A$2.1 million profit for the half year ended 31
December 2003, including a foreign exchange gain of A$0.8 million
and indicated that the 2nd half would deliver a similar result,
excluding any foreign exchange impact. Orbital expects to report a
result for the year ending 30 June 2004 in the range of A$3.0
million to A$3.4 million. The forecast includes a second half year
to date foreign exchange loss of A$0.5 million, due to the
strengthening US dollar. Excluding foreign exchange the 2nd half
result will exceed the 1st half highlighting Orbital's improved
financial performance. Orbital remains in a strong cash position.
Cash on hand at 30 June is expected to be approximately A$12.0
million, also consistent with previous advice to the market.
Forward Looking Statements This press release includes
forward-looking statements that involve risks and uncertainties.
These forward-looking statements are based upon management's
expectations and beliefs concerning future events. Forward- looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of the
Company, that could cause actual results to differ materially from
such statements. Actual results and events may differ significantly
from those projected in the forward-looking statements as a result
of a number of factors including, but not limited to, those
detailed from time to time in the Company's Form 20-F filings with
the US Securities and Exchange Commission. Orbital makes no
undertaking to subsequently update or revise the forward-looking
statements made in this press release to reflect events or
circumstances after the date of this release. Orbital is an
international developer of engine and related technologies,
providing research, design and development services for the world's
producers of powertrains and engine management systems for
application in motorcycles, marine and recreational vehicles,
automobiles and trucks. Orbital's principal operations in Perth,
Western Australia, provide a world class facility with capabilities
in design, manufacturing, development and testing of engines and
powertrains unparalleled in the Asia Pacific region. Orbital
provides its customers with leading edge, world class, engineering
expertise. Headquartered in Perth, Western Australia, Orbital stock
is traded on the Australian Stock Exchange (OEC) and, until June
30, 2004, the New York Stock Exchange (OE). DATASOURCE: Orbital
Engine Corporation Limited CONTACT: Australia: Peter Cook, Chief
Executive Officer, +61-8-9441-2311, Email: , USA: Bob Schmidt,
+1-810-245-0621, both of Orbital Engine Corporation Limited Web
site: http://www.orbeng.com.au/
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