Q: I noticed that LTV has halted trading. Looks like they are selling their assets and patents and will try to remain on the TSXV in hopes of finding something to buy or engage in a reverse takeover. Couple of questions
1) is company dead and simply taking a last breath or is there any hope at all
2) if it does stay on the TSXV but move down to the "NEV Board", what does that mean and can the shares be traded on the NEV Board just as easily as they trade today on the "tier 2 platform"? What is the difference between the NEV board and the tier 2 platrform?
3) what would you do?
Thanks
Scott
1) is company dead and simply taking a last breath or is there any hope at all
2) if it does stay on the TSXV but move down to the "NEV Board", what does that mean and can the shares be traded on the NEV Board just as easily as they trade today on the "tier 2 platform"? What is the difference between the NEV board and the tier 2 platrform?
3) what would you do?
Thanks
Scott
5i Research Answer:
The company claims it will have a 'significant' amount of cash when the deal closes in June, but it is only $2.5M. With employee compensation, listing and regulatory fees, this may not last very long. The odds of it doing a deal that is material we would think are very low. That being said, there is value to a public listing. A reverse takeover would allow a private company to go public cheaply and fast. The NEV board is just a different level of exchange where companies have fewer financial capacity and reporting requirments. Shares will trade the same. So, while there might be 'lottery ticket' potential here, we would exit when trading resumes (it might tick up slightly on the news).