by Greg Klein | April 26, 2016
John McCoach leaves the TSXV helm at year-end, the TMX Group TSX:X announced April 26. Until then he’ll continue with the Revitalizing TSXV program and “will help ensure an efficient, seamless leadership transition for the company and our clients,” the exchange stated.
McCoach joined the organization in 2003, spending the last six years as Venture president. TMX has yet to choose a successor.
Late last year McCoach outlined a three-part program to cut the Venture’s administrative and compliance costs, increase its investor base and liquidity, and recruit new listings from a broader range of sectors. Following publication of a white paper, the Venture presented town hall meetings across Canada.
McCoach appeared unflappable as he countered criticism from a loud, sometimes angry minority at the Vancouver event. A progress report issued last month noted that feedback prompted some adjustments to the program, notably to find time- and money-saving efficiencies in filing procedures and to address market structure and short-selling rules. “These matters were not among the initiatives outlined in the white paper as they are not within the exchange’s scope and authority, but we commit to working with regulators and the trading community to influence discussions,” the report stated.
But the Venture rejected calls for greater vigilance against “zombie” companies. The decision “has been validated in the vast majority of our conversations with the community,” according to the report. “We will continue to monitor listed companies to ensure they meet continued listing requirements and in cases where they do not, the exchange will work with the listed company on an appropriate course of action.”
McCoach told the Vancouver audience that demotion to the NEX board depends on additional factors besides negative working capital, the key definition of a zombie.
Nevertheless Seguro Consulting president Tony Simon last week released an update to his previous list of zombies. As reported by Jeff Desjardins of Visual Capitalist, 669 Canadian mining stocks (52%) listed on the TSX and TSXV meet Simon’s zombie designation, up from 589 and 40% last year.