Nova Minerals Clarifies Shares Outstanding and Market Capitalization Data

Rhea-AI Summary

Nova Minerals (NASDAQ:NVA) has issued a clarification regarding its shares outstanding and market capitalization data. The company's correct market capitalization, based on its American Depository Shares (ADS) on Nasdaq, was approximately $24.8 million as of August 23, 2024. This figure contrasts with the erroneous $1.5 billion market cap reported by some U.S. financial data vendors.

The discrepancy arose from vendors multiplying the current ADS price by the total ordinary shares outstanding on the ASX, instead of the ADS count. Nova's Nasdaq listing in July 2024 involved issuing ADS at a ratio of 1 ADS for every 60 ordinary shares listed on the ASX. The company is actively working to correct this misinformation with data providers.

Positive

• Successful dual listing on Nasdaq in July 2024
• Proactive approach in addressing and correcting market data discrepancies

Negative

• Significant overstatement of market capitalization by financial data vendors
• Potential investor confusion due to incorrect market data

Insights

Financial Analyst

The clarification of Nova Minerals' market capitalization is crucial for investor transparency. The discrepancy between the reported $1.5 billion and the actual $24.8 million market cap is significant. This 75-fold overvaluation could have led to serious misjudgments by investors. It's a reminder of the importance of understanding the intricacies of dual-listed stocks and ADS ratios. The company's proactive approach in addressing this issue is commendable, but it raises questions about the reliability of financial data providers and the potential impact on market efficiency. Investors should be cautious and verify data from multiple sources, especially for companies with complex share structures or recent listings.

Market Research Analyst

This situation highlights a critical gap in data accuracy for newly dual-listed companies. The misreporting by major financial data vendors exposes vulnerabilities in the information ecosystem that investors rely on. It's particularly concerning that this error persisted for over a month since Nova's Nasdaq listing in July 2024. This incident may prompt increased scrutiny of data reporting processes for international listings. For Nova, while the clarification is necessary, it might lead to a short-term negative sentiment as the perceived market value drastically reduces. However, long-term, this transparency could build trust with investors who appreciate accurate reporting.

Market capitalization of Nova's ADS on Nasdaq was approximately $24.8 million as of the market close on August 23

ANCHORAGE, AK / ACCESSWIRE / August 26, 2024 / Nova Minerals Limited ("Nova" or the "Company") (NASDAQ:NVA)(ASX:NVA)(FSE:QM3) wishes to clarify the correct number of shares outstanding and the accurate market capitalization of the Company, following recent discrepancies reported by multiple U.S. financial data vendors.

As of the most recent close, the correct market capitalization of Nova, based on the properly reported ADS, was approximately $24.8 million. This contrasts sharply with the $1.5 billion market cap being erroneously displayed by some financial data vendors who are multiplying the current ADS price by the total ordinary shares outstanding on the ASX rather than the ADS count.

Since Nova's successful dual listing on the Nasdaq in July 2024, the Company has identified that a number of U.S. financial data providers, including those supplying major platforms such as Yahoo Finance, have incorrectly reported Nova's outstanding shares and market capitalization. This issue has resulted from a misunderstanding of the ratio between Nova's American Depository Shares (ADS) listed on the Nasdaq and its ordinary shares listed on the Australian Securities Exchange (ASX).

When Nova listed on the Nasdaq, it did so by issuing American Depository Shares (ADS) at a ratio of 1 ADS for every 60 ordinary shares listed on the ASX. However, many data vendors have erroneously reported Nova's outstanding shares on the Nasdaq as if they were equivalent to the total number of ordinary shares on the ASX, leading to significant overstatements of the Company's market capitalization in the United States.

Nova is actively working with these vendors to correct this misinformation.

About Nova Minerals Limited

Nova Minerals Limited is a Gold, Antimony and Critical Minerals exploration and development company focused on advancing the Estelle Project, comprised of 513 km2 of State of Alaska mining claims, which contains multiple mining complexes across a 35 km long mineralized corridor of over 20 advanced Gold and Antimony prospects, including two already defined multi-million ounce resources, and several drill ready Antimony prospects with massive outcropping stibnite vein systems observed at surface. The 85% owned project is located 150 km northwest of Anchorage, Alaska, USA, in the prolific Tintina Gold Belt, a province which hosts a >220 million ounce (Moz) documented gold endowment and some of the world's largest gold mines and discoveries including, Barrick's Donlin Creek Gold Project and Kinross Gold Corporation's Fort Knox Gold Mine. The belt also host significant Antimony deposits and was a major historical North American Antimony producer. For more information, please visit www.novaminerals.com.au.

Forward Looking Statements

This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Nova Minerals Limited's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Nova Minerals Limited undertakes no duty to update such information except as required under applicable law.

For Additional Information Please Contact

Craig Bentley
Director of Finance & Compliance & Investor Relations
E: craig@novaminerals.com.au
M: +61 414 714 196

Dave Gentry
RedChip Companies, Inc.
1-407-644-4256
NVA@redchip.com

SOURCE: Nova Minerals Ltd.

View the original press release on accesswire.com

FAQ

What is Nova Minerals' (NVA) correct market capitalization as of August 23, 2024?

Nova Minerals' correct market capitalization based on its American Depository Shares (ADS) on Nasdaq was approximately $24.8 million as of August 23, 2024.

What caused the discrepancy in Nova Minerals' (NVA) reported market capitalization?

The discrepancy was caused by U.S. financial data vendors multiplying the current ADS price by the total ordinary shares outstanding on the ASX, instead of the ADS count, resulting in an erroneous $1.5 billion market cap.

When did Nova Minerals (NVA) list on Nasdaq and what was the ADS ratio?

Nova Minerals listed on Nasdaq in July 2024, issuing American Depository Shares (ADS) at a ratio of 1 ADS for every 60 ordinary shares listed on the Australian Securities Exchange (ASX).

How is Nova Minerals (NVA) addressing the market capitalization reporting issue?

Nova Minerals is actively working with financial data vendors to correct the misinformation and ensure accurate reporting of its shares outstanding and market capitalization data.