TSX group

• How do the listing requirements of TSX Venture Exchange compare to the listing requirements of Toronto Stock Exchange?
• How much capital do you need to raise?
• How do I determine if public venture capital is right for my company?
• Who sets the initial share price?
• What are the alternatives to going public?
• How long does the listing process take?
• How does the CPC program compare to an IPO?
• Are there any courses on being a public company on TSX Venture Exchange?

How do the listing requirements of TSX Venture Exchange compare to the listing requirements of Toronto Stock Exchange?

The following chart provides a sampling of some of the listing requirements of TSX Venture Exchange and Toronto Stock Exchange for companies in the industrial sector (for illustration purposes only).

Click here to obtain more detailed information on listing requirements.

How much capital do you need to raise?

This depends on the needs of your company and the interest of investors. The average financing on TSX Venture Exchange is CDN$2 million, but companies can raise capital in the CDN$500,000 to CDN$20 million range.

The company must be able to justify the amount of capital it needs to investors. Management must also carefully consider the degree of control they wish to retain. Your company must sell at least 20 per cent of its shares in order to go public.

How do I determine if public venture capital is right for my company?

Going public at an early stage is not for every company. Consider these questions to see if it is right for your company:

• Are you looking to raise over CDN$1 million during the course of the next two years?
• Do you plan to use the shares of your company to finance acquisitions?
• Are you looking for an exit strategy for seed investors?
• Is your company looking for more credibility and a higher public profile?
• Have you considered all your financing options?

Who sets the initial share price?

Your company sets the initial share price, in conjunction with your broker or investment dealer's assessment of the current marketplace. The underwriter must ensure an attractive price for investors, which reflects the true value of the company and its future growth prospects. Other factors include past earnings, current economic climate, projected future growth of the company, potential resource prospects and any other special characteristics.

What are the alternatives to going public?

Instead of going public, your company might consider seeking capital from a number of private financing sources, such as angel investors, venture capitalists, government agencies and banks.

How long does the listing process take?

The length of the process varies, depending on the complexity of the listing, the quality of documentation provided by the company and whether any outstanding issues exist. On average, the total process takes from three to six months to complete.

How does the Capital Pool Company (CPC) program compare to an IPO?

The CPC program gives emerging businesses a foothold on TSX Venture Exchange and access to public financing when a traditional IPO is not the preferred route. It is a flexible, straightforward solution for smaller companies that are anxious to take the underwriting risk of an IPO out of the equation. And it enables a CPC with a focused vision to build momentum, raising capital for the purpose of identifying a qualifying transaction, and ultimately obtaining a full listing on TSX Venture Exchange.

Are there any courses on being a public company on TSX Venture Exchange?

Managing the responsibilities of corporate governance and continuous disclosure can be challenging for emerging growth issuers. TSX Venture Exchange offers a comprehensive mentorship program with dynamic, interactive workshops that provide issuers with the critical information needed to be a successful public company.