U.S. Companies - 2023 Guide to Listing

2023 GUIDE TO LISTING 2023 GUIDE TO LISTING 6 7 GOING PUBLIC BENEFITS OF GOING PUBLIC Going public is a major milestone for any company and is a decision requiring careful consideration and expert advice. This is especially true for U.S. companies considering a listing in Canada, as there are legal and tax implications that must be understood early in the planning process. Preparation is critical for a company to be successful in accessing the public markets and then positioning the company to build an investor base as a public company. Your TSX team will work closely with your company’s management to guide you through every stage of the listing process. We provide introductions to experienced cross-border experts and capital providers. The best advice is to be ready to go public, so when the market opportunity is open your company is ready to execute. ACCESS TO CAPITAL AND FUTURE FINANCING OPPORTUNITIES Going public can provide your company with financing opportunities to grow your business via expansion of operations, hiring or acquisitions. The issuance of public shares can also expand and diversify your investor base by giving you access to pools of capital in Canada, the U.S. and globally, and as an alternative to private venture capital. INCREASE VISIBILITY AND PRESTIGE Going public enhances your company’s visibility. Greater public awareness gained through media coverage, publicly filed documents and coverage of your shares by investment analysts can provide your company with a higher profile and greater credibility. Ultimately, this can result in a more diversified group of investors following your company, which may increase demand for your company’s shares and potentially increase your company’s value. FACILITATE GROWTH As a public company, your shares can be used as a currency substitute to acquire target companies, instead of a direct cash offering. Using shares for an acquisition can be a taxefficient and cost-effective vehicle to finance M&A activities. This can also improve your ability to complete mergers and acquisitions in a more timely and cost-effective manner. PROVIDE LIQUIDITY FOR SHAREHOLDERS Becoming a public company establishes a market for your company’s shares, providing your investors with an efficient and regulated platform on which to trade their shares. Greater liquidity in the public market can often lead to better valuation than would be achieved as a private company. CREATE EMPLOYEE INCENTIVE MECHANISMS Your employees can participate in the ownership of your company and benefit from being shareholders. Stock options and employee share purchase programs are good mechanisms for compensating your employees without depleting cash reserves. This can serve to ensure stronger employee commitment to your company’s performance and success, and can be used as a recruitment incentive.