– *updated September 25, 2023 –
The Toronto Stock Exchange (TSX) has different listing requirements for natural resource, finance, and industrial and technology companies.
The attached chart sets 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 talking to corporate executives who are considering listing on the TSX. The listing requirements can sometimes be confusing, and waivers can be obtained when a company desiring to list is strong in all listing categories but one.
Please feel free to book an appointment with us if you need assistance determining if your company qualifies to list on the TSX or another exchange.[spacer height=”30px”]
TSX – Industrial & Technology Companies Listing Requirements
| Requirements | Profitable Companies | Companies Forecasting Profitability | Technology Companies |
Research & Development Companies | Industrial Companies |
|---|---|---|---|---|---|
| Pre-Tax Income Last Year | C$200,000 | C$200,000 | N/A (Evidence for current or next fiscal year only) | N/A | C$300,000 |
| Pre-Tax Cash Flow Last Year | C$500,000 in last fiscal year | C$500,000 (Evidence for current or next fiscal year) | N/A | N/A | C$500,000 in last fiscal year and avg of C$500,000 for past two fiscal years. |
| Minimum Operating History | One Year | N/A | Advanced stage development or commercialization of product/services | Two years of R&D expenditures | N/A |
| Net Tangible Assets | C$2,000,000 | C$7,500,000 | N/A | N/A | C$7,500,000 |
| # of Public Board Lot Holders | 300 | 300 | 300 | 300 | 300 |
| Minimum Free Trading Public Float | 1,000,000 | 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 | C$4,000,000 |
| Market value of Issued Securities to be Listed | N/A | N/A | C$50,000,000 | N/A | N/A |
| Minimum Cash in Treasury | N/A | N/A | C$10,000,000 | C$12,000,000 | N/A |
| Minimum Additional Working Capital | Adequate given business | Adequate given business | One year coverage | Two years coverage | N/A |
| Sponsorship Required | Yes | Yes(1) | Yes | Yes | No |
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.
For the listing criteria of mining companies click here or go to the TSX website. TSX – Mining.
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Other Articles You May Find of Interest:
- Master Chart of the Listing Requirements of the NYSE, NYSE-MKT, Nasdaq, TSX, TSX Venture Exchange, Cboe Canada and CSE – September 25, 2023 –
- Listing Requirements of the New York Stock Exchange – September 25, 2023 –
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