I read this post by Chauncey Gardiner and it made me think that this might be a good reason for a TSX-V company to do a share consolidation...........

"Delistings have been few so far this year, thanks in part to the "relief measures" which the TSX-V enacted in August, 2012. These allowed companies with shares trading under five cents to raise money by offering shares and units at prices less than five cents. There are some conditions. A company can raise a maximum of $500,000, $225,000 of which must be subscribed to by insiders. Only $50,000 of any money raised can be put toward working capital. The rest must be used maintaining or preserving existing operations. Also, companies wishing to raise money under these measures must first provide the exchange with an itemized breakdown of how they plan to spend the money. According to Oreninc, an PR website that publishes financing data, 50 TSX-V companies used the relief measures since last fall, closing financings as high as $500,000 and as low as $42,500.

The relief measures were first set to expire on Dec. 31, 2012, but they have been twice extended, to April 30, 2013, and then to Aug. 31, 2013. TSX-V president John McCoach says he plans to let them lapse next month. Then, companies with share prices under five cents will need to consolidate before raising more money. This, he points out, is something many companies might not be able to afford. The TSX-V charges a flat $2,500 per rollback, while the TSX charges $5,000."

Thanks Chauncey!

- panamax