DYAI: Relocating to a Nicer Neighborhood

By John Vandermosten, CFA


Dyadic International Inc. (OTC:DYAI) announced this morning that they have satisfied all of the requirements for inclusion on the NASDAQ and target uplisting to the exchange this Wednesday. This continues the string of positive catalysts and milestones achieved by the gene expression platform developer. Shortly after the February announcement that the Form 10 was effectively filed with the SEC and that the company would seek a NASDAQ listing, shares moved above $2.00 per share then $3.00 per share, satisfying increasingly stringent requirements for listing on the coveted bourse. At $3.00, the shares need only trade for five consecutive days before satisfying the price requirement for listing.

After a several week period of responding to questions from the stock exchange, Dyadic announced the NASDAQ’s approval of the listing in an SEC filing on April 12, 2019. The process to obtain a NASDAQ listing should be complete by Wednesday, April 17, when shares of Dyadic are expected to start trading on the NASDAQ Capital Markets exchange under the ticker symbol DYAI.

A listing on the NASDAQ confers several benefits to companies that trade there. Additional prestige, recognition of more stringent disclosure and accounting standards that those required for the OTC markets and increased visibility. The move should also result in company inclusion on investment universe lists for many institutional investors as many funds are prohibited from buying OTC stocks. The sum of all of these benefits is that a NASDAQ listing provides a larger pool of investors and compresses the bid ask spread due to the greater trading volumes.

Despite Dyadic’s successes in the reporting and trading domains, the fundamental driver for the company will continue to be achievements with C1 advancement and with partners. We expect to see continued progress in C1’s expression rates, glycoengineering, protease deletion, internal programs for nivolumab and certolizumab and with additional collaborators in the coming quarters.

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