In: Accounting
The Canadian Securities Exchange, or CSE, is operated by CNSX Markets Inc. Recognized as a stock exchange in 2004, the CSE began operations in 2003 to provide a modern and efficient alternative for companies looking to access the Canadian public capital markets.
The Canadian Securities Exchange is an exchange designed specifically to meet the needs of public companies and investors. Streamlined issuer regulation is made possible by the CSE requirement for enhanced disclosure. With practical and effective regulatory oversight and modern technology, the CSE provides an efficient stock exchange that fosters integrity, transparency and liquidity
Listing requirements
On-going requirements
If a listed company fails to meet these requirements, the shares may be suspended from trading as per Policy 3.
Fees
For companies that wish to list on the CSE, Forms 1-4 must be completed and submitted with a cheque for $5,000 (non-refundable) plus GST/HST.
Listing on the Toronto Stock Exchange
Canada is well known for its vast natural resources and mining industry, which makes it an important country for international investors to consider. While the country has a number of different stock exchanges, the most popular is the Toronto Stock Exchange ("TSX") - one of the largest stock exchanges in North America by listings and the eighth largest in the world by market capitalization.
Toronto stock exchange is established in 1852 and owned and operated as a subsidiary of the TMX Group, the Toronto Stock Exchange (TSX) is the most significant stock exchange in Canada.
Reqirements
A company seeking to list on the TSX must meet specified minimum financial, distribution and other standards. A company must file a listing application together with supporting data to demonstrate that the company is capable of meeting these minimum listing requirements. Further, the company must enter into a listing agreement with the TSX, committing it to comply with TSX requirements on an ongoing basis.
The minimum financial requirements and public distribution requirements vary with each category of applicant company. Applicant companies are placed in one of three categories: Industrial (General); Mining; or Oil and Gas. Special purpose issuers such as exchange traded funds (ETFs), split share corporations, income trusts, investment funds and limited partnerships are listed under the Industrial (General) category. If the primary nature of a business is not distinct, the TSX will place the company into a listing category following a review of its financial statements and other documentation. In general, an applicant company, once listed, must have at least one million freely trading public shares with an aggregate market value of at least C$4 million held by at least 300 public shareholders, each holding at least one board lot (100 shares).
An applicant company must also demonstrate that it has satisfactory management expertise and experience. This should relate not only to the company’s business and industry, but also to public company experience. For a management team, companies must have at least two independent directors, a chief executive officer, a chief financial officer and a corporate secretary. The stock exchange or securities commission may undertake background searches of a company’s officers and directors, either at the time of the IPO or when new members of management join the company.
At the time a company is approved for listing by the TSX, the company will be designated as either an “exempt issuer” or a “non-exempt issuer.” Exempt-issuer status can be attained when the applicant company is established, has net tangible assets (or in the case of an oil and gas issuer, proved developed reserves) of C$7.5 million or more and meets prescribed cash flow, pre-tax profitability and working capital requirements. Mining applicant companies must also have proven and probable reserves capable of providing a mine life of at least three years in order to be designated as exempt. For non-exempt issuers, sponsorship is usually required and can play a significant role in determining the suitability of a company for listing on the TSX, particularly where the company only narrowly meets the minimum listing requirements for non-exempt issuers. If the requirements for exempt status are not met at the time of original listing, the company may seek exempt status later, either on application in writing, accompanied by the applicable fee, or upon review by the TSX.