01:03:54 EDT Fri 29 Mar 2024
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Post says TSX-V full of "zombie" listings

2015-03-03 07:07 ET - In the News

The Financial Post reports in its Tuesday edition there are about 600 "zombie" companies on the TSX Venture Exchange that should be purged as quickly as possible. The Post's Peter Koven writes that is the view of Tony Simon at the Venture Capital Markets Association, who recently completed a detailed study of resource firms on the junior stock market. He calculates the total working capital of these "zombies" is negative $2-billion, even though they claim to have $5-billion of assets that have been capitalized. Mr. Simon told the Post the exchange's owner, TMX Group, simply wants the listing fees. "It's the sheer number of them that creates a problem," Mr. Simon said. If these companies were kicked off the TSX-V, they would have nowhere to go. Mr. Simon said they would not even qualify for the upstart Canadian Securities Exchange, which requires $50,000 of working capital for a listing. More broadly, he is disturbed by the general apathy over this issue. "Is there anybody out there that actually wants to talk about this stuff? The answer is no." TMX Group says it "consistently and carefully reviews the companies that are listed on its exchange to ensure they comply with its continuous listing standards."

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