March 15, 2016
Canada’s junior stock market, TSX Venture Exchange (TSX-V), recently published a white paper proposing strategies to help it weather the global downturn in mining and other resources—sectors with a significant presence on the TSX-V. The Financial Post sought comment from partner and co-head of Torys’ Mining and Metals Practice Michael Amm for an analysis on the white paper. Below is an excerpt of the article.
Mike Amm, a partner with Torys LLP in Toronto, says the TSX-V's white paper has some terrific ideas that might make listing or raising capital easier for issuers. But loosening listing requirements or streamlining the process only helps if those are the things that are keeping companies from looking to the exchange to raise equity or that are preventing people from investing in the TSX-V listed stocks.
At the end of the day the day the problem is that investors just don't want to put money in the mining sector right now, Amm says. "So there's really not much that the TSX-V can do to improve the situation until commodity prices improve."
To read the full article, click here.