Lonestar Resources Ltd. (ASX: LNR) (OTCQX: LNREF) is implementing a shift in its domicile from Australia to the US and listing its shares on NASDAQ. Subject to shareholder and regulatory approvals, the company expects this re-domiciliation and listing to become effective late March 2016.
The re-domiciliation of the company will be achieved by schemes of arrangement pursuant to which the company's shareholders and option holders will exchange their securities in the company for securities in Lonestar Resources US Inc., a newly incorporated Delaware company, once all approvals are secured.
“A potential move to the NASDAQ should heighten awareness from US investors, which could translate into a higher valuation for LNREF, in our view (LNREF currently trades at ~4x EV/2016E EBITDA vs. its average micro-cap peers at ~8.9x),” noted Seaport Global Securities analysts Thursday.
Lonestar considers that the change in domicile to the US is appropriate considering that 100% of the company's assets and operational management are in the US.
As part of the re-domiciliation, Lonestar Resources US Inc. is filing a registration statement on Form 10 with the US Securities and Exchange Commission (SEC) before the end of 2015. Pending the SEC declaring the effectiveness of its Form 10 registration statement, Lonestar Resources US Inc. will meet the requirements to obtain a listing on NASDAQ.
Lonestar has reserved the trading symbol "LONE" with NASDAQ. Commensurate with the listing of the common stock of Lonestar Resources US on NASDAQ, the company will cease to trade on the ASX.
Lonestar Resources is headquartered in Fort Worth, Texas, and is focused on the crude oil/condensate window of the Eagle Ford shale play of south Texas.