Letter from Rich Morrov todayDear Ms. ...,
I hope the following statement is of some help to you in outlining the effects on shareholders of delisting of MagIndustries shares.
MagIndustries Corp. (TSX:MAA) ("MagIndustries" or the "Corporation") announced on July 20, 2015 that the Toronto Stock Exchange (the “TSX”) has confirmed that the TSX Continued Listings Committee has determined to delist the Corporation’s securities effective at the close of market on August 19, 2015. The delisting was imposed for failure by the Corporation to meet certain continued listing requirements of the TSX.
Following the delisting of the Corporation's common shares from the TSX there will be no public market over which the common shares of MagIndustries will trade. Shareholders will continue to hold the shares held by them prior to delisting but shareholders will not be able to trade such common shares on the TSX. Furthermore, the Corporation's common shares are currently subject to a general cease trade order imposed by the Ontario Securities Commission and certain other Canadian securities regulators and therefore no trades (purchases or sales) through a private sale, or otherwise, are permitted until such cease trade order has been lifted. In order for such order to be lifted the Corporation must satisfy the regulators that its continuous disclosure record has been brought up to date, which will require, among other things, the filing of the Corporation's 2014 audited annual financial statements and the associated management's discussion and analysis ("MD&A") relating thereto together with all subsequent interim financial statements and MD&A of the Corporation that may then be due to be filed.
The Corporation is continuing to work towards ensuring that these statements can be filed as soon as possible but at this time the Corporation does not have a specific timeline for the filing of such documents. Even after the delisting, MagIndustries will remain a reporting issuer under applicable Canadian securities laws and therefore will continue to be obligated to issue news releases regarding material developments. These news releases will be issued through a newswire dissemination service, will be filed on
www.sedar.com and will also be accessible on the MagIndustries' website.
Apart from that, I can’t really comment on the present or future value of your shares and the only further assurance that I can provide is that current management is fully committed to securing fair treatment of all shareholders. We are doing our best to engage a successor auditor which is a first step toward getting into compliance with OSC requirements.
Best regards,
Rich