Benzinga | Jul 6, 2021 08:30AM EDT

What the Nasdaq Uplisting Could Mean for Worksport

Canadian-based tonneau provider Worksport (OTC:WKSP) has heated up the solar landscape.

The company's high quality, modular and attractively priced tonneau covers and solar-powered systems for light-duty trucks like Ford (NYSE:F), GM (NYSE:GM) and Nikola (NASDAQ:NKLA) have been performing well in sales.

By the end of 2021, its allied TerraVis COR(tm) mobile energy storage system (ESS), will be another redefining product targeted for vacationers, second-home owners and campers.

But, the company's most exciting revelation thus far, arguably, has been the potential uplisting to the Nasdaq stock exchange.

What are the Benefits of Uplisting?

Uplisting is the practice of elevating a company from having its stock quoted on an alternative trading platform like the Over-the-Counter (OTC) exchange to a major stock exchange like Nasdaq.

It is essentially moving up the stock market food chain as the stocks of a company get bigger and more successful.

The reason for uplisting is threefold.

First, institutional investors and hedge funds prefer large stock exchanges over OTC because there isn't enough liquidity.Second, since larger stock exchanges have more stringent requirements, it gives a greater sense of legitimacy -- allowing better investors to take part. For example, companies that want to list on the Nasdaq are required to have 1.25 million public shares held by at least 550 shareholders with a collective market value of $45 million.

And, moving to a major exchange like Nasdaq offers greater visibility -- making it the best place for a company to have access to more investors from around the world.

Promising Future for Clean Energy Stocks on Nasdaq

Nasdaq attracts many of the world's leading companies today: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB) and Comcast (NASDAQ:CMCSA).

This is largely because of the way Nasdaq has embraced innovation in its trading platform for companies in technology, as well as companies in other cutting-edge industries like clean energy.

The transition toward a cleaner future has become clearer in the recent past because of political and economical actions. The green initiative is backed by President Joe Biden's $2.3 trillion investment proposal in infrastructure.

An investment of this scale spells good news for top clean energy stocks and allows investors to jump on the bandwagon in many ways. Clean energy stocks also benefit when oil and gas stocks tumble. And, with more consumers moving toward EV vehicles, the shift from fossil fuels is inevitable.

Many clean energy IPOs have also performed well in the recent past. One such company is FuelCell Energy, Inc. (NASDAQ:FCEL). In 2019, the stock was trading in the 50-cent range for most of the year. But around November 2020, there was increased interest in the stock. Volume came in and the stock broke out above $1 in December. As of June 29, 2021, the stock is trading at $9.75.

Similarly, other clean energy companies like Sunworks, Inc. (NASDAQ:SUNW) and VivoPower (NASDAQ:VVPR) experienced great results at the end of their IPOs as their stocks went supernova.

Uplisting Implications for Worksport

Recent information about the company's plan to launch a subsidiary company, TerraVis Energy, suggests that the company might be using hydrogen fuel cells and allow EV charging where it wasn't thought possible.

With Worksport's existing robust product line of tonneau covers, its revolutionary TerraVis(tm) system, upcoming advanced TerraVis COR(tm) mobile energy storage, potential Nasdaq uplisting and the company's plan to launch a new subsidiary, the future looks sunny for the company.

Worksport is a partner of Benzinga. The information in this article does not represent the investment advice of Benzinga or its writers.