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TORONTO — The chief executive of RB Energy Inc. believes the lithium miner might have avoided insolvency if not for a two-sentence statement issued by the Toronto Stock Exchange.
CEO Rick Clark said in an interview the company thought it had a $70-million financing package lined up in mid-September that would have resolved its liquidity issues. But then the TSX, following its guidelines, issued a blanket press release saying it was conducting a de-listing review of the stock.
The TSX statement simply repeated what Vancouver-based RB said the day before. But the stock price collapsed as soon as it came out, and Mr. Clark said he could no longer line up financing on reasonable terms.
Instead, he elected to file for creditor protection last Monday. “We got absolutely hit in the side of the head [by the TSX statement],” said Mr. Clark, who was formerly CEO of market darling Red Back Mining Inc. Regardless, he said he does not want to blame the exchange for what happened.
The impact of the TSX announcement on Sept. 16th is undeniable. The stock plunged 25% that day, with 14.4 million shares changing hands. It then fell another 25% during the following five trading days and could not recover. Continue Reading →