- Digital assets company, Galaxy Digital (TSXV:GLXY) has gained conditional approval for TSX listing, through the TSX Sandbox initiative
- TSX Sandbox is for companies that do not meet traditional TSX listing-requirements, but could still list on the TSX
- Galaxy Digital will list through TSX Sandbox for twelve months, during which it cannot have any significant compliance issues
- However, the company thinks its short operating history and recent share price volatility may damage its chances of permanently listing
- Galaxy Digital (GLXY) is down 9.85 per cent, with shares trading at C$1.19 and a $79.5 million market cap
Digital assets company, Galaxy Digital (TSXV:GLXY) has gained conditional approval for TSX listing, through the TSX Sandbox initiative.
TSX Sandbox is for companies that do not meet traditional TSX listing-requirements, but could still list on the TSX.
Consequently, the TSX has waived the requirement that Galaxy Digital have C$10 million in treasury resulting from public raise. As a result, the company can now list through TSX Sandbox for twelve months, during which it cannot have any significant compliance issues.
If this probationary period is successful, the company can be recommended for full listing.
However, Galaxy Digital did state that two factors could negatively impact its chances. Firstly, the company has not been operating for long, putting its business at risk from operational changes or upsets.
Secondly, the company’s share price has been volatile since listing on the TSXV. It is also likely to remain volatile in the near future.
These two factors could hurt the company’s chances during the 12-month period listing through TMX Sandbox.
Galaxy Digital’s President, Christopher Ferraro, believes this is the right time for the company to graduate to the TSX.
“Our move to the TSX, the most senior public market of the TMX Group, is another significant step in our evolution as a public company focused on providing improved liquidity and enhanced public disclosure to investors.
“We look forward to continuing to help bring institutions into the digital asset ecosystem, especially in the face of unprecedented monetary and fiscal actions globally,” he said.
Galaxy Digital (GLXY) is down 9.85 per cent, with shares trading for C$1.19 at 1:53am EDT.