The TSX is proposing changes to its original listing and non-exempt issuer requirements. The moves include a step away from industry-specific requirements for industrial companies, updates to the mining company categories and changes to the qualification rules for exempt and non-exempt issuers.
The proposed moves follow a request for feedback issued in June.
TSX plans to change the name of its industrial category to the diversified category, and create three new subcategories: income and revenue-producing, pre-income producing and new enterprise (not including special purpose acquisition companies).
“Our analysis revealed that the subcategories … do not always align with the businesses of applicant issuers and are unconventional as compared to the listing categories of our peer exchanges,” said TSX in a report.
TSX is proposing industry-specific mining company listing categories. It also plans to update terms and requirements related to the sector, and change monetary requirements to align with inflation. TSX is recommending the removal of the minimum working capital requirement for mineral exploration and development-stage companies, “as it is viewed as duplicative given other requirements for run rate calculation and work program spend.”
For oil and gas companies, TSX is planning updates that reflect the current economic environment and industry practices. “TSX is of the view that current requirements for proved developed reserves are too low to remain pertinent and is therefore proposing to increase this requirement,” it said. “Since 2012, only a single issuer has listed on TSX with proved developed reserves of less than $50,000,000.”
TSX is also looking to expand its qualifying reserves to include both proven and probable reserves.
Additionally, TSX has proposed the removal of its $4 million public float requirement in sections 310, 315 and 320 of the Toronto Stock Exchange Company Manual. It is seeking to make it easier for issuers to obtain a sponsorship letter, and to make the process more transparent.
The deadline for written submissions is May 5.