(Reuters) – Canada’s main stock exchanges are pushing for regulatory changes that could make it easier for retail investors to participate in small financings long deemed too risky for the general public, a move that could help shore up the country’s hard-hit junior mining sector. continues here
This mail received today from “reader T, friend of the blog” was so good I asked T if I could stick it up here verbatim. T agreed, so without further ado…
I’m late to this story (Its from mid-September), but the fact that this is even on the table seems completely crazy to me… and actually makes me angrymorning.
As I think of this idea, I picture a conversation at a table:
On one side – is a guy representing the Venture Exchange.
On the other – is a guy representing the droves of garbage jr. companies who can no longer raise money from accredited investors.
Exchange guy says, “Well boys, we would like to see you remain members of our dog-fvck exchange so you can continue to pay listing fees.”
JrCompany guy says, “Hey… funny thing… WE’RE PERFECTLY ALIGNED…because we would LOVE to remain members of the exchange and have a few hundred grand in the kitty so we can pay ourselves salaries and options for another year while golfing 5 days a week and doing no actual work of any kind.”
Exchange guy: “Well looky-here JrCompany guy, what we if relaxed the rules so you can steal the very last drops of cash from the pockets of clueless non-credited investors? We can call it… ‘CrowdFunded Private Placements’!”
JrCompany guy: “THAT WOULD BE SWELL Exchange guy! Yay!