Vancouver-based Matrix Asset Management Inc. (TSX:MTA) said Friday that the Toronto Stock Exchange (TSX) will review the eligibility of the company’s common shares for continued listing on the TSX.
Matrix said the review affects only Matrix common shares and does not affect any of the funds managed by subsidiaries of the asset management company
The TSX initiated its review because the market value of publicly held common shares of Matrix fell below levels required under TSX rules.
Matrix will be granted 120 days in which to regain compliance with all requirements for continued listing. If the TSX determines that firm’s common shares should be delisted, Matrix may consider alternative listing arrangements.
“Reducing Matrix’s working capital deficit is a priority for Matrix. The previously announced agreement to sell the management and related contracts for the Matrix Funds to Marquest Asset Management Inc. is scheduled to complete by August 31,” said David Levi, president and CEO of Matrix, in a release. (See Investment Executive, McKim comes full circle with Seamark, July 16, 2013.)
“The Marquest transaction and a debt financing arrangement Matrix announced on August 8 are both expected to help improve the company’s working capital position and support Matrix’s efforts to remain listed,” he added.
Earlier this month, Matrix entered into a debt financing arrangement for up to $5 million of which $1 million was advanced at closing. Two further tranches of $2 million each are exercisable at the option of the Matrix, subject to the satisfaction of certain conditions, including the closing of the Marquest transaction.