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Post says TSX-V's zombie numbers grow to over 1,300

2016-04-22 09:44 ET - In the News

Also In the News (C-X) TMX Group Ltd

The Financial Post reports in its Friday edition that the TSX Venture Exchange is plagued by more than 900 "zombie" companies with negative working capital. The Post's Peter Koven writes that Tony Simon, co-founder of the Venture Capital Markets Association, figures there are 910 companies on the TSX-V that are not meeting capital requirements for listings. He said the combined working capital of these companies, which are nicknamed "zombies," is negative $4.2-billion. That figure does not include the NEX board for inactive companies that fall below listing standards. After adding the NEX companies to his list, Mr. Simon said the total number of zombies is greater than 1,300. There has been a spirited debate over what to do with these companies, most of which are not doing much of anything. Critics have called for a mass delisting. They claim the zombies drag down the reputation of Canada's capital markets and distract attention from active companies. They think the TMX Group is not doing enough to delist them because it wants to maximize fees. TMX president John McCoach said the delisting argument is "fair comment," but he does not see evidence that inactive companies are a problem for the stronger ones.

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