Director’s Talk Interviews discussed Pulsar Helium’s upcoming milestone dual listing on the London Stock Exchange.
Pulsar Helium Inc., one of the USA’s most prominent, multi-project ‘Green Helium’ exploration companies, has decided to pursue a dual listing on the London Stock Exchange’s AIM Market.
With many of Pulsar’s core team hailing from the UK and London’s AIM Market emerging as a global hub for industrial gas companies, the timing appears favourable. In recent months, companies in this sector have thrived on AIM, benefiting from strong investor support.
Additionally, there has been growing interest from UK retail investors, and together both factors have encouraged Pulsar to pursue a dual-listing, which would make it easier for their British network and a broader investor base to participate in the company’s growth.
Global growth in the helium market
On a broader scale, the global helium market is gaining significant attention, driven by its vital role in high-tech industries, such as semiconductors, medical devices, and space exploration.
Helium’s unique properties make it essential for many applications, but its rarity and the complex extraction process pose major challenges. Russia and Qatar are key players in the global helium market, with both countries holding significant helium reserves.
However, geopolitical factors pose challenges to their helium production. Russia, as a top-three helium producer, faces restrictions due to sanctions, which limit its ability to supply helium to Western markets.
Meanwhile, Qatar’s helium production, although substantial, is susceptible to geopolitical tensions in the Middle East, which could impact supply chains and export stability. These factors underscore the vulnerability of global helium supplies to political events and highlight the need for diversified ‘Safe Jurisdiction’ sources of helium to mitigate supply risks.
Pulsar, with its assets in the USA and Greenland, is well-positioned to capitalise on the growing demand and supply shortages in the helium market.
The appeal of AIM for small-cap companies
The AIM Market is a sub-market of the London Stock Exchange (LSE) designed to help smaller, growing companies access capital markets with reduced costs compared to the LSE’s Main Market.
AIM has earned a reputation as a global leader for small and mid-sized companies seeking equity financing. It now boasts approximately 700 listed firms from a wide range of industries.
AIM’s flexibility, international exposure, and dynamic investor base make it an appealing destination for small-cap companies, particularly those in high-growth industries such as helium exploration.
For Pulsar, dual-listing on AIM offers several strategic benefits that could support its expansion and broaden its appeal to a wider pool of investors, especially those based in the UK.
Key benefits of a dual-listing on AIM for Pulsar Helium
Access to capital for expansion
One of the most compelling reasons for any small-cap company to list on AIM is the opportunity to raise additional capital. By dual-listing on AIM, Pulsar can tap into a new pool of risk-tolerant investors focused on growth sectors.
The London market is known for its strong base of institutional investors, particularly in the energy, mining, and exploration sectors. Many of these investors look for opportunities in early-stage, high-potential companies. As demand for helium increases, Pulsar’s promising projects, particularly its flagship Topaz Project in Minnesota, stand to benefit.
A dual listing on the London Stock Exchange is expected to support and accelerate the company’s exploration and development activities while providing the necessary liquidity for strategic acquisitions or joint ventures.
Increased liquidity and shareholder base
Dual listing on AIM also presents the potential for enhanced liquidity in Pulsar’s shares. AIM’s structure, which allows for easier trading of small-cap stocks, could attract more active trading in Pulsar’s shares, which could ultimately improve the company’s liquidity profile.
For small-cap companies, enhanced liquidity can make the stock more attractive to institutional and retail investors alike, as it reduces the risk associated with holding or trading relatively illiquid assets.
A dual listing on AIM will allow UK-based and European investors easier access to the company’s shares, which are currently listed on the Canadian-based TSX Venture Exchange under the ticker PLSR and on the OTCQB under the ticker PSRHF.
Developing a broader shareholder base and improved liquidity could, in turn, contribute towards a more stable share price and position the company well for future fundraising efforts.
Enhanced visibility and credibility
Dual listing on AIM would raise Pulsar’s profile in the UK and European investment communities. The London Stock Exchange is a highly respected financial market, and a listing on AIM would bring the company under the scrutiny of London’s financial analysts and media.
This increased visibility is expected to attract interest from industry analysts, institutional investors, and high-net-worth individuals looking to invest in innovative, growth-oriented companies.
The credibility that comes with an AIM listing could also open doors for Pulsar in terms of partnerships, strategic alliances, and even government contracts. Being listed on a well-established and regulated exchange like AIM brings increased credibility, providing the company with stronger leverage when in negotiations with suppliers, customers, and potential joint venture partners.
Regulatory flexibility and lower costs
AIM is known for its lighter regulatory touch compared to the LSE’s Main Market, making it an attractive destination for small-cap companies.
The costs of listing and ongoing compliance are typically lower on AIM, which is a significant advantage for Pulsar. This allows it to focus more of its resources on exploration and development rather than administrative overhead.
The flexibility of AIM’s regulatory framework also allows companies to pursue growth strategies more aggressively. For example, AIM-listed companies have more freedom regarding acquisitions, fundraising, and corporate restructuring.
This flexibility allows Pulsar to adapt quickly to changing market conditions or raise additional capital should it be required without facing the more rigid requirements of an LSE Main Market listing.
Strategic positioning for future growth
A dual listing on AIM could serve as a strategic stepping stone for Pulsar as it continues to grow and expand its operations.
The helium market is expected to grow significantly over the coming decades, driven by its critical role in sectors like semiconductors, space exploration, and medical technologies.
Moreover, AIM’s international reputation is expected to open doors for Pulsar to pursue additional listings in other global markets, further expanding its footprint and access to capital.
Why UK investors should be excited about Pulsar Helium’s dual listing
Exposure to a high-growth market
Helium has attracted considerable attention in recent years due to supply shortages and its crucial role in high-tech industries.
As demand for this essential resource is poised to rise, investors are actively seeking opportunities to gain exposure. Pulsar, with its exploration efforts concentrated in helium-rich and ‘safe jurisdiction’ regions, presents UK investors with a unique opportunity to invest in a company poised to lead in meeting this growing demand.
A dual listing on AIM provides UK-based investors with a simple and direct way to gain exposure to the helium market without the complexities of foreign exchanges.
Potential for strong returns
Small-cap exploration companies like Pulsar present the potential for significant returns, particularly if they are successful in their exploration and development activities.
Compared to other natural resource industries, there are still very few listed companies operating in the helium space, making Pulsar potentially an attractive prospect for investors should its strategic plans develop as the Board intends.
Environmental and strategic importance
With an increasing focus on sustainability, helium’s strategic importance is likely to grow, further driving demand for this rare resource. Helium is essential not only for high-tech industries but also for supporting the green energy transition.
As battery technology becomes increasingly critical in this shift, helium is widely used in the production of battery cells, modules, and packs. Many countries now rely on battery storage, allowing renewable energy to be stored and released as needed, balancing supply and demand in the power grid.
Pulsar’s commitment to ‘green’ helium projects aligns with these trends, offering investors a chance to support a clean, low-impact commodity.
Future investments in helium
A dual listing on AIM could be a pivotal move for Pulsar, providing access to new capital, increased liquidity, enhanced visibility, and regulatory flexibility.
For UK-based investors, this presents an opportunity to invest in a company well-positioned to capitalise on the growing demand for helium, a resource critical to many high-tech and environmentally sustainable industries.
As Pulsar Helium continues to develop its projects, a dual listing could drive the company into its next phase of growth and deliver value to its shareholders.
Pulsar Helium Inc. is a primary helium exploration and development company listed in Canada and the USA.
The company focuses on discovering and developing helium resources, which are essential for various industries, including technology, healthcare, and research. Pulsar Helium’s current operations are centred around advancing its projects in Minnesota, where it aims to expand its known helium reservoirs and contribute to the growing demand for this critical resource.