Ivanhoe Capital Acquisition Corp. Warrants each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per... IVAN.WS

RE:Another Consolidation?

[skygarden]

Ivanhoe will not be delisted from the Nasdaq (at least not for the moment)--I do not trade on Nasdaq so I had to verify the delisting requirements. According to Investopedia.com they state the following:

How Delisting Works
The rules for delisting depend on the exchange and which listing requirement needs to be met. For example, on the Nasdaq, the delisting process is set in motion when a company trades for 30 consecutive business days below the minimum bid price or market cap. At this point, Nasdaq's Listing Qualifications Department will send a deficiency notice to the company, informing it that it has 90 calendar days to get up to standard in the case of the market value listing requirement or 180 calendar days if the issue is regarding the minimum bid price listing requirement. The minimum bid price requirement, which is $1, and the market value requirement (minimum $5 million, provided other requirements are met) are the most common standards that companies fail to maintain. Exchanges typically provide relatively little leeway with their standards because most healthy, credible public companies should be able to meet such requirements on an ongoing basis.

However, while the rules are generally considered to be written in stone, they can be overlooked for a short period of time if the exchange deems it necessary. For example, on September 27, 2001, the Nasdaq announced that it was implementing a three-month moratorium on price and market value listing requirements as a result of the market turbulence created by the September 11, 2001, terrorist attacks in New York City. For many of the approximately 400 stocks trading under $1, the freeze expired on January 2, 2002, and some companies found themselves promptly delisted from the exchange. The same measures were taken in late 2008 in the midst of the global financial crisis, as hundreds of Nasdaq-listed companies plunged below the $1 threshold. The Nasdaq makes other exceptions to its rules by extending the 90-day grace period for several months if a company has either a net income of $750,000, stockholders' equity of $5 million or total market value of $50 million.

According to Stockwatch.com the last time Ivanhoe closed above $1 was on July 22, 2013 so if they have 180 days to meet the $1 threshold they will have until January 2014 to satisfy that condition.

From looking at Ivanhoe's August 2013 corporate presentation they have extended some time schedules:

• Ecuador Block 20 Partner – Q3 2013

• Tamarack Partner – 2014 (Q4 2013 in their June 2013 presentation)

• Potential divestiture of Nyalga – 2013/2014 (Q2/Q3 in their June 2013 presentation)

The positive point is their Equador Block asset--again from their August presentation:

 Ivanhoe engaged in partnership

discussions with industry participant

• Need government endorsement prior to

communicating key deal terms

I suspect that once they receive government endorsement of the project there will be a pop in share price and I would not be surprised to see some insiders pick up more shares after they disclose the terms.

Every investor has their own risk tolerance, comfort level and time frame and Ivanhoe definitely is not for everyone, but I think that the next couple of quarters should be positive.