Post by
MidtownGuy on Oct 06, 2020 7:19pm
Thoughts re TSX $10mm Treasury via issuance requirement
As noted previously, one of the listing requirements is "Minimum $10,000,000 in the treasury, the majority of which has been raised by the issuance of securities qualified for distribution by a prospectus".
Given it's a majority, that's at or above $5,000,000 needed.
So thoughts:
1/ exemptions to this are possible, and granted based on proving "an affiliation with established business and/or exceptionally strong financial position". So if PYR comes out prior to listing with a torch deal that shows massive numbers, OR an contractual affiliation with a giant customer a la Vale, Tesla, etc., the TSX would likely wave the treasury issuance requirement, no doubt. It's simply there to show you can raise money. Giant contracts and partners would prove that.
2/ Could HPQ pull a PYR and, through a private placement for that full $5mm, buy into PYR? Not sure what cash HPQ has, but maybe that's the reason for the back and forth quid pro quo of a month ago.
3/ Could Sheldon Inwentash continue the relationship he announced a few months ago, and make his buy-in via private placement for the whole amoun (less likely)?
4/ Could one of the major contract partners of the infamous clients A, B, or C (or Tesla) buy the whole private placement to ensure their exclusivity?
On the whole, it's easy money to raise without market-level dilution. $5mil is chump change now.
Comment by
Olderguy1 on Oct 06, 2020 7:25pm
Excellent post MidtownGuy. You present some interesting alternatives. I am looking forward to seeing what actually happens. I hope some of the new business comes in soon.
Comment by
pjecan on Oct 06, 2020 8:21pm
"$5,000,000 is chump change" is a great takeaway from this post. Especially for a company of this quality.