Key Takeaways:
Redwood AI Corp. received approval from the Depository Trust Company to clear and settle its common shares electronically in the US, a move the company said will simplify trading and improve liquidity for American investors.
"Receiving DTC eligibility is an important step in improving access to Redwood AI for investors in the United States," Chief Executive Officer Louis Dron said. "By enabling electronic clearing and settlement, we believe Redwood's shares will be more efficient for US investors and brokerage firms to trade."
The Vancouver-based company, which trades on the Canadian Securities Exchange under the ticker AIRX, also lists on the OTCQB in the US as RDWCF and on the Frankfurt exchange as Y0N. DTC, a subsidiary of the Depository Trust & Clearing Corp., provides the electronic infrastructure used by US broker-dealers and banks to process securities transactions. The approval allows Redwood's shares to be transferred electronically through DTC's system rather than through physical certificates.
Redwood AI uses artificial intelligence to accelerate chemistry research and development, focusing on drug discovery, defense applications, and safety solutions. The company has been building momentum through a series of partnerships and research collaborations. On May 25, it announced a collaboration with Resilience Biosciences for AI-assisted small-molecule drug development. Earlier this month, its operations subsidiary received approval for up to CAD 240,000 in funding from the National Research Council of Canada for a chemical screening project. The company also recently launched a research collaboration with the University of British Columbia to enhance its AI-driven chemical synthesis platform.
Separately, Redwood said it engaged InvestorBrandNetwork, an Austin-based marketing firm, to provide market awareness and corporate communications services. The company will pay IBN a cash fee of US$114,000 for services running through Sept. 30, 2026, or until budget exhaustion.
The DTC approval removes a friction point for US-based investors who previously faced manual settlement processes. Redwood's shares closed at 7.12 Canadian dollars on the CSE on Tuesday, down 1.66% on the day and 25% year to date. The company's next catalyst will be the progress of its AI platform deployments and the outcomes of its academic and industry research partnerships.
This article is for informational purposes only and does not constitute investment advice.
