AMATO EXPLORATION LTD. (“AMT”) has fallen from Tier 2 into the dreaded NEX platform.
Amato’s President Kieran Prashad announced that the company has failed to maintain the requirements for a Tier 2 company on the TSX.V. One would have to assume that the January 26, 2015 announcement by Amato of stating “…has initiated a strategy to aggressively identify and seize opportunities to acquire such reserves on a long-term horizon, with the full support of its major shareholder.” was a bust. In its most recent financials dated August 31, 2015 Amato had cash and cash equivalents of some $491,539 which appear to have been ample to have kept the company’s Tier 2 status. Amato has been quite inactive for most of 2015 so we are not quite sure precisely why Management failed to keep their company as Tier 2 status. Either way, Amato is on the NEX now and it is going to be a long, difficult resurrection back up to Tier 2. As we see it, the vast majority do not succeed. In closing, we note that Amato’s President Kieran Prashad, in the company’s January 15, 2016 news release, provided a very clear explanation of the NEX platform and we thought it was worthy of quoting here. Prashad said, “NEX is a separate board of the TSX-V for companies previously listed on the TSX-V or the Toronto Stock Exchange, which have failed to maintain compliance with the continuing financial listing standards of those markets. NEX has been designed to provide a forum for the trading of publicly listed shell companies while they seek and undertake transactions in furtherance of their reactivation as companies which will carry on an active business.” We wish the company luck.