Canadian Regulator Reprices Two Trades After 99.9 Percent Drop
Sabina Gold & Silver Corp. and Avalon Rare Metals Inc. trades on Chi-X Canada, an electronic stock market that competes with the Toronto Stock Exchange, indicated the shares plunged 99.9 percent to less than a penny before regulators asked for the transactions to be fixed.
The exchange said 3,500 shares of Sabina changed hands at 0.5 cents a share at 4:24 p.m. in Toronto after the shares had closed at C$4.88. Six minutes later, a trade of 100 shares of Avalon Rare Metals, which had closed at C$6.39, was quoted at 0.5 cents a share.
After Chi-X conferred with the Investment Industry Regulatory Organization of Canada, the Sabina trade was repriced at C$3.92 and the Avalon Rare Metals trade at C$5.11, said Mark Dowd, a New York-based spokesman for Chi-X owner Instinet Inc. Dowd wouldn’t comment on what led to the unusual pricing.
Nicole Hoeller, Sabina’s director of investor relations, and Ron Malashewski, her counterpart at Avalon Rare Metals, said they were unaware of the temporary plunges in their companies’ shares.
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