SILVER FIELDS RESOURCES INC. (“SF.H”) This company been another of the TSX.V suspensions waiting to happen for a very long time. Perhaps it would be fair to simply say that the TSX.V put Silver Fields out of its misery at $0.005 after SF.H missed its Listing Maintenance Fees payment aka Annual Sustaining Fees. These are the fees each publicly listed company is required to pay the Stock Exchange or Trading Platform on which the company’s shares are listed. If a company is listed on multiple Exchanges it would be required to pay an annual fee to each, if applicable. Each Exchange sets its fees annually, thus they vary.
Silver Fields has been on life support for a long time. When the company issued its last set of financials for the period ending September 30, 2015 the company was armed with $392 cash. When Silver Springs is looked at from a rollback adjusted perspective we see the company has crashed from a $29.00 adjusted high in 2006 to its $0.005 level in 2016 where is was suspended.
The singular most important aspect to recognize from the Silver Springs debacle is its affection for rolling back its shareholders. If people are to actually regain confidence in trading on the TSX.V and other such exchanges the ease and frequency of rollbacks has to STOP! Over its history Silver fields has seen to it that its shareholders have been rolled back no less than four times. It has been rolled back 6 for 1 new, followed by a 3 for 1 new, then a 10 for 1 new, and then capped off with another rollback of an additional 10 for 1 new in 2013.
If a shareholder has been loyal and stayed invested during its chain of rollbacks here what there position would look like today. Let’s suggest that the investor started out with a 1000 share purchase at $1.00 and never sold a single share. The 1000 shares were reduced to 166.67 shares after the first rollback. That 166.67 was further reduced by to only 55.55 shares with the second rollback. The third rollback would have reduced the remaining 55.55 shares to only 5.55 shares. The final rollback would have left our shareholder with a balance of 0.55 shares. Yes that shareholder has only ½ of 1 share remaining at the time of the suspension when the shares traded for $0.005 each. Our shareholder’s $1,000 investment has been reduced to $0.0025 as of the day of the suspension. Yes, you are reading that correctly; ¼ of 1 cent remains of the $1,000 invested. This is only one aspect of how these multiple rollbacks are hurting investors. This investor’s piece of the pie of assets would have eroded many times what we have shown you here.
Would you believe it if we told you that in order to make it easier for listed companies to survive, and pay fees of course that during these tough markets the TSX.V made revisions in its policies to make it even easier for these companies to carry out rollbacks? Members likely know the answer to that question.
Our Members enjoy this lesson and many others inside Can you afford not to be a Member of