Suspension - what does this mean?
posted on
Oct 15, 2007 02:28PM
Engineering, procurement, construction & management of crude oil refineries.
Here is the definition from the TSX MRS manual as to what it means to suspend a stock:
The objective of TSX's policies regarding continued listing privileges is to facilitate the maintenance of an orderly and effective auction market for securities of a wide variety of listed issuers that are actively engaged in an ongoing business, in which there is a substantial public interest, and that comply with the requirements of TSX. The policies are designed and administered in a manner consistent with that objective.
TSX has adopted certain quantitative and qualitative criteria (the "delisting criteria"), that are outlined in the following sections, under which it will normally consider the suspension from trading and delisting of securities. However, no set of criteria can effectively anticipate the unique circumstances which may arise in any given situation. Accordingly, each situation is considered individually on the basis of relevant facts and circumstances. As such, whether or not any of the delisting criteria has become applicable to a listed issuer or security, TSX may, at any time, suspend from trading and delist securities if in the opinion of TSX, such action is consistent with the objective cited above or further dealings in the securities on TSX may be prejudicial to the public interest.
TSX examines the affairs and the performance of listed issuers to ensure that they are of a standard that merits the continued listing of such companies. If as a result of such examination, TSX determines that any of the delisting criteria outlined in Sections 708 to 717 has become applicable to a listed issuer or to its securities, TSX will notify the listed issuer (by telephone or telecopied letter) and the market (by trader note and bulletin) that the listed issuer is under a delisting review.
The delisting review process will be conducted through either the "Remedial Review Process" or the "Expedited Review Process", as follows:
Remedial Review Process
Expedited Review Process
S0 to summarize, this is normal for the TSX to suspend, a stock, and in this case, pending clarification. One or two NR's from WWF will clear this up real sooon.