GREY:TSTIF - Post by User
Comment by
Drrwongon Aug 29, 2017 11:04am
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Post# 26632259
RE:RE:RE:U.S. Listing
RE:RE:RE:U.S. ListingI know I am going to get a lot of heat for this, but here are some of my thoughts to a US listing:
- Typically, Canadian firms will list in the US when they are doing an equity raise. The company will try to place these new shares into US institutional investors' hands (no HFs) as long term shareholders. At this point, TSO3 has no needs for additional cash, and I (as a shareholder) sure don't want the dilution at these prices.
- The added costs for a US listing might be more than the $2mm you listed there. We must keep in mind that TSO3 is still a micro-cap company, with $20ish mm in cash only. So a $2-4mm added cost is significant, especially when they need the cash to ramp up production and build a new manufacturing facility in 2018
- Even with a US listing, micro-cap names still get "played". Look at other Cdn healthcare examples throughout the years, like Cardiome (CRME).
- As a long term investor, I want management (RR, GK) to focus on building the company and its business. I know the stock will react accordingly (eventually) if the underlying business is sound and growing. I don't think protecting uninformed retail investors should be among its top priorities, and I sure don't want them to check their stock price every 5mins.
- On the other hand, agencies like FINRA, SEC, etc. are tasked with protecting retail investors, and they should be one who should step up. But as we have seen with Pershing/Valeant/Allergan example, many of these HFs are playing in the "gray" area that can make prosecution difficult even though it seems like a no-brainer for any typical person.