Nustay updates on new business strategy and intentions to move stock exchange listing and to list in the USA
Nustay A/S (“Nustay”) has today announced its intention to move from Spotlight Stock Market (Sweden) to NASDAQ First North Growth Market Denmark and concurrently to list on OTC Market Groups OTC/QB list in the USA. Increased liquidity in the trading of the shares, making trading more accessible for both Danish and US investors and to be on trading platforms that best supports the company’s growth prospects are the key reasons. Nustay has further revealed its new business strategy, including the launch of two new platforms: travelpalm.com and searchcheaphotels.com.
From Spotlight to NASDAQ First North Growth Market and OTC/QB in the USA
Nustay’s Board of Directors has made clear the company’s intention of moving from Spotlight Stock Market, where the company is currently listed, to NASDAQ First North Growth Market Denmark this year. Concurrently the company will also seek a listing on OTC/QB in the US thereby significantly increase US investors’ access to invest in Nustay.
The reason behind seeking to move from Spotlight Stock Market to NASDAQ First North Growth Market is to increase the shares’ liquidity and make trading more accessible for Danish investors. As NASDAQ First North Growth Market is a OTC Markets Group qualified foreign stock exchange the move to NASDAQ First North Growth Market enables the listing on OTC/QB in the US which Nustay believes is fundamental for building both a US and an international shareholder base. Nustay is a “born global” company with clients and investor interests from around the world and especially from the US. With a listing on both NASDAQ and OTC Market Group Nustay’s investor base and Nustay’s customer base will be more aligned.
Nustay believes the move to NASDAQ First North Growth Market and the OTC listing in the US further will support the new business strategy (set out below), which Nustay believes could be particularly appealing to US investors. Many of Nustay’s peers are listed companies in the US and with companies within the travel industry in the US often trading at higher levels than Scandinavian companies, Nustay believes trading in the US will prove beneficial for the overall trading in Nustay’s shares.
New Business Strategy: two new platforms
Nustay has now set in motion a new business strategy, which consists of launching two new platforms. These will be hotel booking websites similar to Nustay but targeting different key market segments. The first, travelpalm.com, will be a family-oriented hotel booking site, and the second, searchcheaphotels.com, will be a discount hotel booking site focusing on ‘bargain hunter’ customers.
The two new sites will be listed on price comparison marketing next to Nustay and competing platforms, increasing exposure and therefore making it more likely for the Nustay group (the three platforms) to generate more bookings – similar to the strategy of competitors like e.g. Booking Holdings -marketing different services on the same price comparison sites.
ROI Positive: Performance since resumption of marketing activities
Since starting marketing activities three weeks ago (5th of August – 26th of August), Nustay has increased its total bookings by 375% compared to the previous two months (4th of June – 4th of August). Importantly, all these bookings have been ROI positive.
Most of the bookings have been domestic travel and principally within EU countries, such as France, UK, Italy and Germany, where staycations have increased during COVID-19. This ‘staycation’ trend is similarly showing in the US, where, according to Google and SOJERN data, domestic US hotel searches and bookings have shown consistent growth. Nustay will be making the US its next focus market over the coming weeks and expects a strong increase in sales in line with the demand trend.
Mathias Lundoe Nielsen, Nustay CEO, comments:
“The announcements today all highlight our goal of accelerating out of the current crisis. Nustay’s objective is to have the company much better placed to compete against the largest players in the global market by the end of next year (2021). Our intention to move from Spotlight to NASDAQ First North as well as our new platforms are key ingredients in our strategy to meet this objective. We are especially keen to make the most of the increased liquidity the move will create, knowing that there is keen interest from US investors; having been approached by professional US investors several times.”
For further information about Nustay, please contact:
Investor Relations, Nustay A/S
E-mail: investor@nustay.com
Website: www.nustay.com
This information is information that Nustay A/S is obliged to publish following the EU Market Abuse Regulation. The information was provided by the contact person above for publication on August 27th, 2020.
About Nustay:
Nustay is a Danish online hotel booking company established in 2014. The company has developed an innovative booking platform offering the lowest possible hotel prices while also enhancing customer’s booking experience. Nustay has set out an ambitious vision to become the global leader within the online hotel booking industry, and is confident its large hotel room inventory, novel pricing strategy, and transparent booking process, will achieve that goal.
