A shocking and unheard of 37 companies delisted from the TSX Venture in the month of September, according to TMX Money. To my knowledge this is a record and took place during a month which saw just 4 new companies list on the beleaguered resource-centric exchange.
The TSX Venture, up to and including today, is down 13 of the past 16 trading days. The exchange is teetering on the brink of its all-time low of 509 – hit on August 24th.
These delisting are not just a reflection of the worst bear market of all-time in junior resource stocks, but a trend of consolidation as some successful, but many depressed juniors consolidate to survive.
I wrote about this trend in an article from earlier this week titled Consolidation: a new trend on the TSX Venture?
I chronicled the recently announced First Mining Finance (TSX V:FF) acquisition and consolidation of Gold Canyon Resources (TSX V:GCU) and PC Gold (TSX V:PKL) in that article.
Another success story from September was the successful acquisition and subsequent delisting of North Country Gold. The gold explorer was acquired by Auryn Resources as its agreement was formalized on September 25th.
North Country Gold’s impressive 52-week chart looks like it’s from a different era.
North Country Gold – 1 Year Chart
Stina Resources was among the companies which chose a different exchange altogether. While some companies chose to list only on a US exchange, a few of the 37 companies who deslited from the TSX Venture in September chose Canada’s newest and most junior exchange: the Canadian Securities Exchange.
Stina Resources was one of those companies and announced on September 28th that:
“…the Company will list its common shares on the CSE, and intends to voluntarily delist its common shares from the TSX Venture Exchange.”
Click here to read the entire press release.
While some companies opt for the CSE or a junior US exchange, others are not so fortunate.
A handful of the 37 companies, to name just a few, including Palladon Ventures (“PLL”) Redwater Energy Corp. (“RED”) Liquid Nutrition Group (“LQD”) and Cygam Energy (“CYG”), were featured in a recent press release:
“Effective at the close of business Monday, September 21, 2015, and in accordance with Exchange Policy 2.9, the following companies’ securities will be delisted from TSX Venture Exchange, for failure to pay their Annual Sustaining Fees.”
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While all of the 37 companies to delist from the TSX Venture have unique reasons, the harsh market conditions played a factor in most cases. For some the delisting was a long-time coming, while others likely saw an easy and quick way to reduce expenses.
The long awaited capitulation and ‘cleansing’ of the exchange could finally be upon us as commodity prices continue to languish and liquidity and financing capabilities are reserved for the elite issuers of an evolving TSX Venture exchange.
This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.
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