Transcript Slide 1

TSX GROUP
Providing Access to North American Capital for
Growth-Orientated Israeli Companies
Israel 2008
Raymond D. King
Senior Manager, Global Diversified Industries – Listings Business Development
Toronto Stock Exchange & TSX Venture Exchange
© 2008 TSX Inc. All rights reserved.
Do not copy, distribute or modify this document without TSX Inc.’s prior written consent.
Disclaimer
This document is for information purposes only and is not an invitation to purchase securities
listed on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TSX
Group Inc. and its affiliates do not endorse or recommend any securities referenced in this
document. Please seek professional advice to evaluate specific securities.
While the information herein is collected and compiled with care, neither TSX Group Inc. nor any of its
affiliated companies represents, warrants or guarantees the accuracy or the completeness of the
information. You agree not to rely on the information contained herein for any trading, business
or financial purpose.
This information is provided with the express condition, to which by making use thereof you expressly
consent, that no liability shall be incurred by TSX Group Inc. and/or any of its affiliates as a result
of any errors or inaccuracies herein or any use or reliance upon this information.
© 2008 TSX Inc.
2
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
3
North American Stock Markets Continuum
NYSE
TSX
• Senior listing standards
NASDAQ
• Disclosure rules
• Junior listing
standards
OTC BB
CNQ
• No listing standards
Pink sheets
4
TSX Group is a world leading marketplace
Access to Capital
TSX Group’s equity exchanges are among
the best markets in the world for raising
public equity capital
•
Market Performance
S&P/TSX Indices Outperform
7th in the world in 2007
Source: Bloomberg
Total Cumulative Return
Sept 30 2002 to Sept 30 2007
Source: World Federation of Stock Exchanges
By total dollar amount raised
Large Peer Group
TSX Group is 2nd in the world and
1st in North America by number of
listed public companies
Total of 3,951 companies:
• 1,613 on TSX
• 2,176 on TSX Venture Exchange
• 162 on NEX
Size
TSX Group is 3rd in North America
and 7th in the world by total listed
company market capitalization
($2.2 Trillion)
Source: World Federation of Stock Exchanges
By Domestic Market Cap, December 31, 2007
Source: World Federation of Stock Exchanges
Unless noted, all stats are as at December 31, 2007
5
TSX Group serves companies at different
stages of development, and…
Total of 3,738 listed companies*
2,176 companies
72 companies graduated to
senior market in 2007
67 companies graduated to
senior market in 2006
1,613 companies
TSX Venture Exchange
Toronto Stock Exchange
• Access to capital for earlier stage
companies or smaller financings
• Senior market for well established
businesses and management teams
with experience in public markets
• Cost effective stepping stone for
international companies looking to list on
a quality North American market
• Exchange mandate to mentor
management of newly public companies
• Streamlined graduation to TSX when
senior market requirements are met
• Access to larger and more
international institutional investors
and greater analyst coverage
• Globally visible specialized indices
• 155 year history
• 101 year history
*As at 31 December 2007 (excludes NEX)
6
…TSX Group of exchanges support companies
at ALL stages of their growth
Market Capitalization (C$MM)
26%
22%
17%
14%
12%
13%
10%
0%
<1
2%
1-5
10-25
TSX
25-50
15%
12%
6%
3%
5-10
19%
16%
50-100
9%
4%
100-250
1%
0%
250-500
500-1B
TSX Venture
Toronto Stock Exchange:
1,613 issuers, Market Cap = $2.09 Trillion
TSX Venture Exchange:
2,176 issuers, Market Cap = $58.1 Billion
As at 31 December 2007
7
0%
>1B
Canadian equity marketplace ideal for small
to mid-cap IPOs
Total IPOs in Canada and U.S.
Average amount raised during IPO (2007)
U.S. markets:
US$234.1 million
TSX:
US$73.9 million
TSX Venture:
US$2.2 million
338
272
268
232 233
197
185
142
91
2001
Source: Hoovers IPO Central
94
2002
208
199
123
81
2003
2004
Canada
2005
2006
2007
USA　8
TSX Group: Providing Access to Capital
Through Equity Financing
Equity Financing on TSX and TSX Venture Exchange
(C$ Billions)
$58.8
$50.7
$52.2
$49.7
$40.0
2003
2004
Public Offerings
2005
2006
Private Placements
2007
IPOs
9
Total Going Public Activity:
TSX and TSX Venture Exchange
600
573
550
500
450
400
350
300
482
478
223
197
207
416
351
204
128
250
200
366
150
100
223
212
2003
2004
259
281
50
0
2005
TSX Venture Exc hange
2006
2007
TSX
*Going Public Activity includes RTOs and QTs on TSX Venture Exchange
10
TSX and TSX Venture Exchange have had
consistent growth in liquidity
TSX Venture Exchange
Volume of Shares Traded
52.6
Billions of Shares
Toronto Stock Exchange
Volume of Shares Traded
96.1
Billions of Shares
82.0
37.1
55.6
61.3
64.2
21.1
13.3
2003
16.6
2004
2005
2006
2007
2003
2004
2005
2006
2007
• 5-Year CAGR 41.0%
• 5-Year CAGR 14.7%
• 2007 Volume up 42% vs. 2006
• 2007 Volume up 17% vs. 2006
11
US firms that trade TSX as a Participating
Organization
•
•
•
•
•
•
•
•
•
•
•
•
CSFB
Citigroup
E*Trade
FIMAT/SocGen
Goldman Sachs
HSBC
Instinet
Interactive Broker
ITG
Merrill Lynch
Morgan Stanley
Penson
•
•
•
•
•
Raymond James
Refco
State Street
Timberhill
UBS
US offices of Canadian “Big 6
Banks”:
• BMO Nesbitt Burns
• CIBC World Markets
• RBC Dain Rauscher
• Scotia Capital Markets
• TD Securities
• NBF Financial
40% of TSX Group trading originates from US-based
Participating Organizations servicing their US institutional
and retail client portfolio
12
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
13
TSX Group International Business
Development Markets
UK/EU
RUSSIA
Mining/Energy/
Cleantech
*
Mining/Energy
USA
CHINA
All Sectors
All Sectors
ISRAEL
Tech/
Industrial
INDIA
Diversified
SOUTH
AMERICA
AFRICA
Mining
Mining/Energy/
Industrials
Research market
AUSTRALIA
Mining/Energy/
Industrials
Pilot market
Expand activities
14
TSX, NASDAQ and AIM Overview
Offering Size – Israeli Companies Perspective
Average Size of Israeli Companies Offering by Market (2004 – 2006)
$150.0
$142.0
$130.0
Potential TSX Offering
$110.0
$83.2
$90.0
$70.0
$50.0
$20.0
$30.0
$8.2
$10.0
-$10.0
NYSE
NASDAQ
AIM
TASE
Source: IVC-Online and CIBC World Markets.
Note: Includes IPOs and Follow-on offerings. Excluding real-estate, gaming industry offerings and exceptional size offerings (Teva).
15
TSX Group International Listings
As of December 31, 2007
Australia/New
Zealand/Papua
New Guinea, 27,
11%
UK/Europe, 23,
10%
China, 37, 15%
South
Africa/Africa, 10,
4%
Toronto Stock Exchange
146 international listings with
QMV=$197.6 Billion
South America, 4,
2%
Other**, 9, 4%
USA, 130, 54%
TSX Venture Exchange
94 international listings with
QMV=$3.4 Billion
*Based on location of company headquarters
** Other includes Bermuda, Barbados, British West Indies, Channel Islands, Guernsey
16
TSX Group’s new international listings
TSX Group International New Listings
by Country
TSX Group New International Listings
by Sector
2007
Oil & Gas, 4,
8% Technology, 2,
China
49
South Africa/Africa
42
UK/Europe
South America
36
Australia/New Zealand
Other
USA
15
4%
Mining, 27,
56%
29
Diversified
Industries,
10, 20%
15
Financial
Services, 2,
4%
Life Sciences,
4, 8%
2002
2003
2004
2005
2006
2007
Total = 49
* Other includes Bermuda, Barbados, British West Indies, Channel Islands and
Guernsey
17
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
18
TSX Group exchanges are designed for
companies at all stages of growth
Project /
Idea
R&D or
Prototype
Commercial
Stage
Stable
Production
Operating
History
Private Equity Candidates
Founders, Family/Friends
Angels
Venture Capitalists
Pink Sheets/OTCbb
TSX Venture Candidates
AIM Candidates
TSX Candidates
NASDAQ Candidates
19
Market Comparison: TSX, Nasdaq, AIM
Market Data for 2007 (C$)
Number of Issuers Listed
TSX
Venture
TSX and
Venture
1613
2176
3789
1694
3069
$2,093.5
$58.1
$2,151.6
$197.5
$4,026.3
207
366
573
284
290
$47.6
$11.1
$58.8
$34.8
$17.4**
96.1
52.6
148.7
153.9
N/A*
$1,697.2
$44.8
$1,742.0
$161.2
$16,465.8
118.6
8.6
127.2
4.2
1654.2
AIM
Nasdaq
Quoted M arket Value
(C$ Billions)
Going Public Activity
Equity Capital Raised
(C$ Billions)
Volume Traded
(Billions of Shares)
Value Traded
(C$ Billions)
Number of Trades
(Millions)
As at December 31, 2007
*Nasdaq information not available.
**Nasdaq information does not include secondary financings
20
TSX surpassed AIM by total equity capital
raised, quoted market value and value traded
2006
TSX
TSX Venture Exchange TSX and TSX Venture
AIM
Number of Issuers Listed
Quoted Mark et Value (C$ Billions)
New Listings
Equity Capital Raised (C$ Billions)
1598
$2,061.3
197
$41.8
2080
$54.9
186
$7.9
3678
$2,116.2
383
$49.7
1634
$213.6
462
$32.7
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
82.0
$1,416.1
85.7
37.1
$33.1
6.4
119.1
$1,449.2
92.1
138.5
$121.1
3.5
2007
TSX
TSX Venture Exchange TSX and TSX Venture
AIM
Number of Issuers Listed
Quoted Mark et Value (C$ Billions)
New Listings
Equity Capital Raised (C$ Billions)
1613
$2,093.5
207
$47.6
2176
$58.1
366
$11.1
3789
$2,151.6
573
$58.8
1694
$197.5
284
$34.8
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
96.1
$1,697.2
118.6
52.6
$44.8
8.6
148.7
$1,742.0
127.2
153.9
$161.2
4.2
• Source: TSX, LSE and AIM (TSX analysis of public information)
21
TSX Group continued to outperform AIM in the mining
sector – # of issuers, new listings, and equity financing
2006
TSX
TSX Venture
Exchange
TSX and TSX
Venture
LSE
AIM
LSE and
AIM
Number of Mining Issuers Listed
Quoted Mark et Value (C$ Billions)
New Mining Listings
Equity Capital Raised (C$ Billions)
291
$287.7
65
$7.7
983
$35.1
47
$4.8
1274
$322.8
112
$12.5
36
$394.9
2
$8.3
186
$39.7
53
$2.4
222
$434.5
55
$10.8
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
33.2
$347.8
22.6
25.6
$21.6
4.5
58.8
$369.4
27.1
n/a
$640.7
6.6
16.5
$18.0
0.52
n/a
$658.8
7.11
2007
TSX
TSX Venture
Exchange
TSX and TSX
Venture
LSE
AIM
LSE and
AIM
Number of Mining Issuers Listed
Quoted Mark et Value (C$ Billions)
New Mining Listings
Equity Capital Raised (C$ Billions)
341
$337.8
78
$11.8
1032
$34.5
108
$7.2
1373
$372.3
186
$19.1
42
$499.5
11
$4.1
187
$30.3
22
$5.2
229
$529.8
33
$9.3
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
42.0
$448.8
37.2
37.4
$33.1
6.4
79.3
$481.9
43.6
n/a
$920.4
11.90
23.8
$27.6
0.72
n/a
$947.9
12.62
• Source: TSX, LSE and AIM (TSX analysis of public information)
22
TSX Group dominated oil and gas sector in # of
issuers and equity financing
2006
TSX
TSX Venture
Exchange
TSX and
TSX Venture
LSE
AIM
LSE and
AIM
Number of O&G Issuers Listed
Quoted Mark et Value (C$ Billions)
New O&G Issuers
Equity Capital Raised (C$ Billions)
166
$521.3
17
$8.8
266
$10.3
14
$1.6
432
$531.6
31
$10.5
33
$1,353.1
5
$0.7
98
$23.3
24
$3.2
131
$1,376.3
29
$3.8
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
13.4
$339.5
19.3
5.8
$7.7
1.1
19.2
$347.2
20.3
n/a
$697.9
5.5
24.2
$21.7
0.8
n/a
$719.6
6.2
TSX
TSX Venture
Exchange
TSX and
TSX Venture
LSE
AIM
LSE and
AIM
Number of O&G Issuers Listed
Quoted Mark et Value (C$ Billions)
New O&G Issuers
Equity Capital Raised (C$ Billions)
158
$526.7
12
$7.5
266
$11.2
21
$1.7
424
$537.9
33
$9.2
37
$1,523.0
4
$0.1
103
$21.9
14
$2.3
140
$1,544.9
18
$2.3
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
14.3
$330.5
23.1
6.9
$6.5
1.0
21.1
$337.0
24.1
n/a
$705.8
7.5
18.1
$21.3
0.7
n/a
$727.1
8.2
2007
• Source: TSX, LSE and AIM (TSX analysis of public information)
23
TSX Group Tech Sector: Going Head-to-Head
with AIM
2006
TSX
TSX Venture
Exchange
TSX and
TSX Venture
AIM
Number of Tech Issuers Listed
Quoted Mark et Value (C$ Billions)
New Tech Issuers
Equity Capital Raised (C$ Billions)
117
$71.1
9
$1.4
229
$2.8
17
$0.4
346
$73.9
26
$1.8
235
$15.9
50
$1.1
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
6.5
$50.3
5.0
2.0
$1.0
0.3
8.5
$51.3
5.3
16.6
$7.5
0.3
2007
TSX
TSX Venture
Exchange
TSX and
TSX Venture
AIM
Number of Tech Issuers Listed
Quoted Mark et Value (C$ Billions)
New Tech Issuers
Equity Capital Raised (C$ Billions)
113
$102.6
12
$1.0
221
$3.8
18
$0.7
334
$106.4
30
$1.7
244
$17.5
26
$1.7
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
5.2
$73.0
6.6
3.9
$2.1
0.5
9.1
$75.0
7.1
18.8
$12.5
0.5
• Source: TSX, AIM (TSX analysis of public information)
24
TSX Group Life Sciences Sector: Going Headto-Head with AIM
2006
TSX
TSX Venture
TSX and
Exchange TSX Venture
AIM
Number of Life Sciences Issuers Listed
Quoted Mark et Value (C$ Billions)
New Life Sciences Issuers
Equity Capital Raised (C$ Billions)
87
$22.0
7
$0.8
57
$0.7
6
$0.2
144
$22.7
13
$1.0
113
$9.2
21
$0.9
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
2.5
$15.3
2.4
0.4
$0.3
0.1
2.9
$15.6
2.5
12.9
$3.9
0.2
TSX
TSX Venture
Exchange
TSX and
TSX Venture
AIM
90
$17.8
7
$1.128
50
$1.0
3
$0.009
140
$18.9
10
$1.137
117
$7.9
15
$0.9
3.7
$15.8
3.0
0.9
$0.7
0.2
4.6
$16.5
3.1
11.5
$6.0
0.3
2007
Number of Life Sciences Issuers Listed
Quoted Mark et Value (C$ Billions)
New Life Sciences Issuers
Equity Capital Raised (C$ Billions)
Volume Traded (Billions of Shares)
Value Traded (C$ Billions)
Number of Trades (Millions)
• Source: TSX, AIM (TSX analysis of public information)
25
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
26
Market Overview
2006 YTD Dec
2007 YTD Dec
% Change
Listed Companies
2,080
2,176
+5%
Total Market Cap
$54.9 B
$58.1 B
+6%
Median Market Cap
$8.2 M
$8.1 M
-1%
$26.4 M
$26.7 M
+1%
Financings
$7.9 B
$11.1 B
+41%
Average Financing
$3.0 M
$4.3 M
+43%
Going Public Activity
281**
366**
+30%
67 to TSX
72 to TSX
+7%
Average Market Cap
Graduates
* Includes IPOs, CPCs, RTOs, QTs, TSX comedowns and Other
27
Trading
2006
2007
% CHANGE
VOLUME:
Total Volume
Average Daily Volume
37.1 Billion
147.7 Million
52.6 Billion
208.8 Million
+41.9%
+41.4%
VALUE:
Total Value
Average Daily Value
$33.1 Billion
$131.7 Million
$44.8 Billion
$177.8 Million
+35.5%
+35.0%
TRANSACTIONS:
Total Transactions
Average Daily Trans.
6.4 Million
25,593
8.6 Million
34,188
+34.1%
+33.6%
$0.89
$0.85
-4.5%
Average Price Per
Share
Source: TSX Venture Review
28
TSX Venture: Financings by Type
 Initial Public Offering
 Public Company Private Placement
12,000
 Public Offering
Millions ($)
10,000
$9,754
8,000
$7,060
$5,608
6,000
$3,686
4,000
2,000
$2,124
$1,251
$72
$115 $120
$132$194
$270
$257
$197$370
$446 $533
$855
0
2002
2003
2004
2005
2006
29
2007
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
30
TSX Group Advantage to Listing In Canada
•
Canada is the market of choice for global small and mid-cap companies
–
–
•
Top-3 global player in technology and life sciences
Diverse cross-section of listed companies in a variety of sectors
Standards-based exchanges that promote integrity for public SMEs
–
Access to specialized products for TSX Group listing (e.g. Capital Pool Company®
program)
•
Sustained access to capital – steady growth of capital investment over past 5
years
•
Strong equity culture – 49% of Canadians hold equities
•
Strong trading liquidity – 30% increase in trading over past 5 years
•
Lower trading impact costs on TSX
•
Analyst coverage typically seen at an earlier stage
•
Canadian regulatory commissions and exchanges are:
–
–
–
Customer-focused
Principles rather than rules based
Employ a flexible corporate governance approach, particularly for TSX Venture
Exchange companies (e.g. exemption from Internal Control Certification)
31
Special Considerations for US and
International Companies Listing on TSX Group
•
Foreign Property Rules lifted by Canadian Revenue Agency – no investment
restrictions on foreign companies
•
US disclosure documents accepted in Canada
–
“Multi-jurisdictional Disclosure System” (MJDS) allows access to Canadian capital markets using
US documents
•
US GAAP, IFRS Accounting and Audit Standards are accepted
•
Companies already listed on another senior market may be exempt from certain
requirements
–
Need to apply for continuous disclosure from securities commissions
•
Board and management must have adequate relevant North American public company
experience
•
Must have a plan for adequate shareholder base & distribution of shares to support a
liquid market on TSX
•
Canadian office not required
•
Recommend a contact person in Canada to be accessible for shareholder and analyst
inquiries
32
Lower cost to list on TSX:
Original Listing Fee Comparison
$600,000
(Canadian $)
$500,000
$400,000
$300,000
$200,000
$100,000
$0
TSX
TSXV
NYSE
NYSE*
Minimum Fee
AMEX
NASDAQ
NASDAQ
SC
ASX
Maximum Fee
* Proposed
33
LSE
AIM
Competitive sustaining fees on TSX
$700,000
(Canadian $)
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
TSX
TSXV
NYSE
NYSE*
Minimum Fee
AMEX
NASDAQ
NASDAQ
SC
Maximum Fee
*Proposed
34
ASX
LSE
Canadian Escrow Policy competitive
with the US
•
•
Applies to principals whose
continuing role is relevant to
an investor’s decision to
subscribe to the IPO
Escrow not required for:
– TSX exempt issuers
– TSX non-exempt issuers
with a Market Cap of at
least CDN $100 Million
Time from
Listing Date
Release of
Securities
Date listed on
TSX
1/4 of escrow
securities
6 months after
listing date
1/3 of escrow
securities
12 months after
listing date
1/2 of escrow
securities
18 months after
listing date
Remaining
escrow
securities
35
Discussion Outline
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
36
TSX Business Development Team
NAME
POSITION/SECTOR
NUMBER
EMAIL
Janis Koyanagi
Director, TSX - International Development & Strategy
416.947.4467
[email protected]
Delilah Panio
Director, TSXV – US Development & Strategy
416.365.2213
[email protected]
Raymond King
Senior Manager – Global Diversified Industries/Israel/India
416.947.4675
[email protected]
Greg Ferron
Senior Manager – Global Mining/Africa/Australia
416.947.4477
[email protected]
Susan McLean
Senior Manager – Global Cleantech & Structured Financial Products/ETFs
416.947.4305
[email protected]
Christa Dewar
Senior Manager – US Business Development Campaign
416.947.4636
[email protected]
TBD
Senior Manager – Global Energy/South America
416.947.4467
[email protected]
Gina Pappano
Senior Manager – Market Intelligence
416.947.4272
[email protected]
Annie Tao
Manager – China Business Development
416.947.4273
[email protected]
37
Contact Information
Raymond D. King
Senior Manager, Global Diversified Industrials –
Listings Business Development
Toronto Stock Exchange & TSX Venture Exchange
[email protected]
416-947-4675
38
Appendix A – Listing Requirements
39
Toronto Stock Exchange Listing Criteria
Listing Criteria for Industrial Companies
Criteria
Senior
Profitable
Forecasting
Profit
R&D
Tech
Public Distribution
• # shareholders
• Public float -shares
• Public float - $
• Total market value
300
1 million
$4 million
N/A
300
1 million
$4 million
N/A
300
1 million
$4 million
N/A
300
1 million
$4 million
N/A
300
1 million
$10 million
$50 million
$7.5 million
$300K
$700/$500
N/A
N/A
Adequate
Adequate
$2 million
$200K
$500
N/A
N/A
Adequate
Adequate
$7.5 million
$300K1
$5001
N/A
N/A
Adequate
Adequate
N/A
N/A
N/A
$12 million
2 years3
Adequate
Adequate
N/A
N/A
N/A
$10 million
1 year3
Adequate
Adequate
Ability to
commercialize
2 years
Advanced
stage
Financial Requirements
• Net tangible assets
• Pre-tax earnings
• Pre-tax cash flow
• Cash in treasury2
• Sufficient funds3
• Working capital
• Capital structure
Other Criteria
• Product/service
• Operating history
1
2
3
forecast for current or next fiscal year
raised via prospectus
funds to cover expenses, R&D, and capex
40
Why List on TSX Venture Exchange
• Financing range: $500k to $20 million
• Multiple financing rounds = more ground-floor investing
opportunity
• Acquisition currency
• Employee stock options
• Mentoring role
• Stepping stone to senior markets
• Streamlined graduation path to Toronto Stock Exchange
• Graduates leave with a track record
41
TSX Venture Exchange Listing Requirements
Tier 1: Technology or Industrial
Category 1
Category 2
Category 3
Net Tangible Assets
(incl. IPO $)
$1 M
$5 M
N/A
Earnings Before Tax
$100,000
N/A
$200,000
18 mos
18 mos +
$100K
18 mos
1M
1M
1M
Public Market Capitalization
$1 M
$1 M
$1 M
Number of Shareholders
200
200
200
Percentage Held by Public
20%
20%
20%
Working Capital
Publicly Held Shares
* R&D MLR: Similar to Category 2 but $1,000,000 in prior R&D required and a $1,000,000 R&D program
must be recommended.
42
TSX Venture Exchange Listing Requirements
Tier 2: Technology or Industrial
Category 1
Category 2
$500,000
$750,000
$50,000
N/A
N/A
$250,000
12 mos
12 mos + $100K
N/A
Sufficient testing to show
commercial viability
$0.15
$0.15
500,000
500,000
Number of Shareholders
200
200
Percentage Held by Public
20%
20%
Net Tangible Assets (incl. IPO $)
Earnings Before Tax
Prior Expenditures or Revenue
Working Capital
Other
Minimum IPO Price
Publicly Held Shares
43