Victoria-based holding company Tiny has received conditional approval to graduate to the Toronto Stock Exchange (TSX) as its stock price nears its all-time low.
Tiny has been trading on the early-stage-focused TSX Venture Exchange (TSXV) since 2023, when it merged with its publicly traded subsidiary WeCommerce. A company can graduate exchanges if it achieves significant growth in assets and working capital, along with other requirements, according to National Bank Direct Brokerage.
“It all feeds into this idea of better liquidity [and] institutional base.”
Jordan Taub,
Tiny
Tiny has been working on meeting graduation requirements, including improving its disclosure reporting and governance practices, since it acquired DJ software Serato earlier this year, CEO Jordan Taub told BetaKit in an interview.
“Graduating through the TSX from the TSXV is a natural progression, and basically allows us to access a bigger pool of institutional investors, more market visibility, [and] better liquidity,” Taub said.
Alongside the graduation, Tiny will also perform the eight-to-one share consolidation that its shareholders approved in June. Taub said the consolidation was “tied together” with getting listed on the TSX.
“It all feeds into this idea of better liquidity [and] institutional base, they’re part and parcel, right?” Taub said. “It was a good time to do them at the same time.”
The company has also opened up a stock buyback bid. The buyback window gives Tiny one year to purchase about five percent of its post-consolidation shares, which will then be returned to its treasury for cancellation. Companies often consolidate and buy back their own shares to increase the value by decreasing supply. The moves follow the holding company’s stock price dwindling over the past year, having recently hit an all-time low of 77 cents per share.
“I think [the stock buyback] is something that we want to have in our toolkit,” Taub said. “As we look at our share price and think about the intrinsic value of the business, if the opportunity presents itself, we could buy back our shares.”
RELATED: Canadian holding company Tiny buys controlling stake in DJ software company Serato for $94.5 million
The graduation, share consolidation, and stock buyback are expected to all occur on Oct. 1, subject to approval from the TSXV and final approval by the TSX.
Tiny has been starting, buying, and investing in Internet-based businesses, particularly in the e-commerce space, since 2007. Tiny claims it has founded 11 companies and owns a majority stake in 40 more, along with minority investments in 90 others. These include interface designer MetaLab in 2017, coffee maker brand AeroPress in 2021, movie-focused social media platform Letterboxd in 2023, and Serato earlier this year.
Last year, Tiny co-founders Andrew Wilkinson and Chris Sparling stepped down from their roles as co-CEOs, promoting Taub, the head of its WeCommerce subsidiary, to the top job.
Feature image courtesy Yashowardhan Singh via Unsplash.