Why the Purifloh share price rocketed 17% higher today to be up 575% in 12 months

The the PuriflOH Ltd (ASX:PO3) share price has been on fire over the last 12 months. Here's why…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the best performers on the Australian share market on Tuesday has been the PuriflOH Ltd (ASX: PO3) share price.

In afternoon trade the air and water treatment company's shares are up over 17% to $3.72.

This means the PuriflOH share price has gained a massive 575% since this time last year.

Why is the PuriflOH share price rocketing higher today?

The catalyst for this latest gain was an announcement this morning which revealed that the company's board has approved an Over the Counter (OTC) Listing in North America.

PuriflOH is targeting an OTCQX listing, which is the top tier of the three marketplaces provided by the OTC Markets Group for the over-the-counter trading of stocks.

It facilitates trade in small and micro cap stocks, though also includes well known international names such as Fortescue Metals Group Limited (ASX: FMG) and Adidas.

The company will now be undertaking final selection processes for a Principle American Liaison (PAL) sponsor and a suitable market maker.

It expects to make these decisions in the coming weeks. After which, PuriflOH has been advised that an OTC listing should be achieved within 6-8 weeks.

Why the OTC markets?

Management believes that a listing on OTC markets offers the ability and utility for United States-based investors to directly trade in PuriflOH without the complexity of establishing bank accounts and broking arrangements in jurisdictions outside of the country.

Thus, this listing will provide it with exposure to millions of new small cap investors.

In addition to this, the release explains that a study has shown that international companies with a primary listing outside the US, experienced a 28% increase in trading volume by number of shares within their home market after joining the OTCQX Best Market.

Management said: "We believe the Company's strategy and US based operation and commercial focus is a strong match for the provision of a trading platform through the OTCQX and that this will be well received by investors."

And that the board "believes the timing is right to seek listing on the OTCQX ahead of the company commencing the commercialization of its FRG platform."

The FRG platform has been designed to purify contaminated indoor air, clean water, and sterilise surfaces. Judging by the strong share price rise over the last 12 months, some investors appear to believe the platform has a lot of potential.

Also rising strongly over the last 12 months have been Avita Medical Ltd (ASX: AVH) and Jumbo Interactive Ltd (ASX: JIN) shares with gains of 483% and 352%, respectively.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

Guess which 4 ASX 200 shares are rocking new 52-week highs today!

Investors just sent these four ASX 200 shares to one-year-plus highs.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX managed to bank a small rise this Tuesday.

Read more »

Sport trainer talking to little girl who is climbing wooden ladder in gym.
Share Gainers

Why Vault Minerals, Droneshield, Westgold Resources shares are climbing higher today

These shares are gaining on Tuesday, but why?

Read more »