(October 1 – 09:25 ET) – The Toronto Stock Exchange is beefing up its continued listing requirements. These moves bring the TSE’s continued listing minimums up to the standard that were established for new listings last fall. The new standards are effective immediately, although they will be published for comment in the Ontario Securities Commission Bulletin.
It is introducing a systematic review process. And intends to give 30-day advance notice of suspensions.
The new requirements include market capitalization of $3 million and a doubling of the public float to a market value of $2 million. Industrial company asset minimums are up to $3 million from $2 million, while revenue minimums are up to $3 million from $1 million. Minimum R&D expenditures are up to $1 million from $500,000. It has eliminated the net tangible asset requirement.
Resource firms must have at least $350,000 in exploration expenditures, up from $250,000. Revenue from commodity sales is required to be $3 million, up from $1 million. The quantified working capital requirement will be replaced with a requirement for adequate working capital.
Listings will receive a 120-day grace period for companies to pull up their socks once they have fallen below the standards. The TSE will allow a six-month “grandfathering” period.
-IE Staff
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