From progress report (cnq form 7)Not that we had any doubts as to why they moved. Question,is the deal still on????
6. Expiry or Termination of Contracts or Financing Arrangements
Glenbriar terminated its listing on the TSX Venture Exchange (TSX-V) in October in order to list on
the CNQ.
Glenbriar submitted a proposed financing transaction to the TSX-V for approval in March 2004.
After six months, no response had been delivered despite additional information being provided,
satisfactory searches on and direct communication with the participants by the TSX-V, and
numerous requests from Glenbriar. Investors who had been lined up in July by the participants
went cold over the uncertainty caused by the delay. Over time, Glenbriar’s management lost
faith in the TSX-V’s governance as evidenced by their lack of understanding of the transaction,
its details, its benefit to Glenbriar’s shareholders, and the cost to Glenbriar caused by the delay.
Glenbriar management determined that its TSX-V listing was preventing it from conducting
business in the best interests of Glenbriar and its shareholders, and sought a credible
alternative to prevent such disruptions in the future.
Glenbriar management conducted due diligence with investment bankers, venture capitalists
and listed companies. The CNQ was identified as a fully electronic exchange with better
information, transparency and disclosure standards. The CNQ uses the same back office in
Toronto for market surveillance as the TSX, and uses TSX Datalinx for market data distribution.
In addition, it follows the Nasdaq model of not vetting transactions, and has a more acceptable
cost structure. In the end, Glenbriar’s board of directors determined that the problems it
experienced with its previous listing would have been avoided under the structure and
disclosure model adopted by CNQ, so they voted unanimously to move Glenbriar’s listing to the
CNQ. Despite this transition, the delays described above have reduced the chance that the
proposed transaction will move forward due to the need to overcome the uncertainty that it has
created for potential investors. If it is able to be pursued, the transaction is still subject to
completion of due diligence, formalization of documentation and market risk. See the Listing
Statement for more details.