Listing Requirements of the Toronto Stock Exchange – Industrial, Tech., Research & Dev. Issuers

– *updated September 25, 2023 –

TSX - Listing Requirements for Industrial, Technology and Life Sciences CompaniesThe 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
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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