EDMONTON – The Cash Store Financial Services Inc. (TSX:CSF) will be delisted from the Toronto Stock Exchange effective May 23 because the lender of last resort says it is unable to meet the continued listing requirements of the exchange.
Trading in the stock has been halted since the company was granted creditor protection by the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act on April 14.
The Edmonton-based company sought court protection to address liquidity issues caused, in part, by regulatory actions taken by the Ontario government.
Despite the delisting and its problems in Ontario, “the company remains open for business and its branches continue to operate,” Cash Store said Thursday in a news release.
“Daily lending is continuing in all jurisdictions outside of Ontario.”
Cash Store Financial operates 510 branches across Canada under the banners Cash Store Financial and Instaloans, an also operates 27 branches in the United Kingdom.
In mid-February, Ontario’s Registrar of Payday Loans said it wanted to deny new licences to Cash Store, citing conduct that included convictions in November 2013 that Cash Store and Instaloans were operating as unlicensed payday lenders.
It also alleged the company charged more than a legal maximum of $21 for every $100 payday loan and that the loans were not provided immediately to consumers.
In addition to providing short-term advances and other financial services to those who may not be able to obtain them from traditional banks, Cash Store also offers a private-label debit card and a prepaid credit card as well as other financial services.