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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by meetoo1600on Dec 01, 2017 10:44pm
414 Views
Post# 27076672

Delisting Notice

Delisting NoticeFor anyone who cares about my opinion, it is that the delisting notice is completely irrelevant for the following reasons: 1. The time frame: Whatever is going to happen with this company -- good or bad -- it will be determined long before the notice period expires, and, even if it is not, the Nasdaq is known to be quite liberal when it comes to granted extensions, at least up to one year. Nasdaq makes its money by having companies listed, not delisted. It has to delist them in certain circumstances to maintain its integrity, but it is never anxious to do so, because it means losing a customer and losing revenue; 2. A delisting only means that the company's shares would no longer be able to trade on the Nasdaq exchange. Trading will still be available under the symbol CXR on the TMX, which does not have a US$1.00 minimum. There is nothing about the company, at the current time, which threatens its TMX listing; 3. If management and the resulting shareholders -- whomever they may be -- value the Nasdaq listing, they will make sure that the restructuring deal results in a share price greater than US$1.00. I am pretty confident that they will do this anyway, but protecting the listing, and the liquidity that comes with it, might function as an additional reason for doing so. Rad10 has noted that this could be achieved post restructuring by doing a reverse split, but I do believe that they will do it in two steps if they have to at all. They will do it as part of the restructuring; and 4. Finally, for all the people following this situation -- which is like watching paint dry -- the giving of the Delisting Notice has no bearing whatsoever on what will happen. It's still all about the restructuring deal, and what will happen with it. Until that is known, nothing else matters. On a separate note, Mr. Hulot, you should have a little more respect for rad10. He is not a shorter trying to push the share price down. He has disclosed that his investment is higher up on the food chain, and it matters little to him whether the stock goes up or down. I do not happen to agree with his prediction with respect to what will happen with this stock, but I do agree that there is a real possibility that his call could be right. It shouldn't be, but it well could be. The fact is that we really do not understand all of the factors at play, and we will only have a better understanding once the restructuring deal -- or lack of one -- is announced.
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