The Canadian Venture Exchange has issued a notice debunking talk that large numbers of CDNX Tier 3 listed companies are about to be delisted or suspended from trading.

“This information is incorrect,” it says. “There are no current plans to generally discontinue the trading of CDNX companies listed on Tier 3. Only specific companies which have been designated inactive and notified in writing are candidates for suspension or delisting if they are not able or choose not to reactivate their listing status within 18 months of the date of designation as inactive.” It says that any plans regarding the general status of CDNX Tier 3 companies will be broadly communicated to the market place.

The CDNX also reminds the investment community that Tier 3 of CDNX is not a “prescribed stock exchange” for purposes of the Income Tax Act, and so Tier 3 companies are not automatically RRSP eligible. However, it is possible for shares of Tier 3 companies that meet certain requirements to be eligible as a “qualified investment” for RRSPs, RRIFs and other types of deferred income plans.

It says that, “Recent feedback received from CDNX Tier 3 companies suggests that many investors and Tier 3 listed companies are being advised by their RRSP Administrators that all Tier 3 companies are ineligible for RRSPs and that any Tier 3 securities already in an investor’s RRSP must be sold immediately.” But, the CDNX points out that the RRSP eligibility of Tier 3 securities depends on the circumstances of each company and the particular investor.