– *updated August 30, 2015 –
The attached chart set-out the listing requirements of the TSX for industrial, technology and life sciences companies which are referred to as research and development companies.
We are always open to talk to corporate executives who are considering listing on the TSX. The listing requirements can sometimes be confusing and waivers can be applied for in certain circumstances when a company desiring to list is strong in all listing categories but for one. Do feel free to book an appointment with us if you need assistance to determine if your company qualifies to list on the TSX or other exchange.
|Requirements||Profitable Companies||Companies Forecasting Profitability||Technology Companies||Research & Development Companies|
|Pre-Tax Income Last Year||C$300,000||C$200,000||N/A (Evidence for current or next fiscal year only)||N/A|
|Pre-Tax Cash Flow Last Year||C$700,000 and average $500,000 for past 2 fiscal years||C$500,000 (Evidence for current or next fiscal year)||N/A||N/A|
|Minimum Operating History||One Year||N/A||Advanced stage development or commercialization of product/services||Two years of R&D expenditures|
|Net Tangible Assets||C$2,000,000||C$7,500,000||N/A||N/A|
|# of Public Board Lot Holders||300||300||300||300|
|Minimum Free Trading Public Float||1,000,000||1,000,000||1,000,000||1,000,000|
|Value of Free Trading Public Float||C$4,000,000||C$4,000,000||C$10,000,000||C$4,000,000|
|Market value of Issued Securities to be Listed||N/A||N/A||C$50,000,000||N/A|
|Minimum Cash in Treasury||N/A||N/A||C$10,000,000||C$12,000,000|
|Minimum Additional Working Capital||Adequate given business||Adequate given business||One year coverage||Two years coverage|
Note: (1) an applicant will be exempt from the sponsorship requirements if they have (a) net tangible assets of $7,500,000; (b) pre-tax income of at least $300,000; and (c) pre-tax cash flow of $700,000 in the fiscal year immediately preceding the filing of the listing application and an average pre-tax cash flow of $500,000 for the two fiscal years immediately preceding the filing of the listing application.
The listing staff of the Toronto Stock Exchange will also look at the suitability of all officers, directors and stockholders holding 10% or more of the company’s stock. Companies must have at least two Canadian independent directors. They must also have a Toronto Stock Exchange participating organization sponsor their listing unless they meet the senior company listing criteria.
All companies listed on the Toronto Stock Exchange must agree to abide by the corporate governance requirements of the exchange.
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