The key amendments are:
Market Performance and Public Distribution: Introduction of a minimum total market capitalization of $3 million, Increase in the minimum market value of the public float to $2 million (from $1 million).
Fundamental Financial Requirements: Industrial Companies Companies must have total assets or revenues of at least $3 million (increased from $2 million and $1 million respectively). For R & D companies, minimum R & D expenditures are increased to $1 million (from $500,000). For all companies the net tangible asset requirement has been eliminated.
Resource Companies: Companies must have minimum exploration and/or development expenditures of $350,000 or revenues from the sale of commodities of $3 million (increased from $250,000 and $1 million respectively.) Companies no longer have to meet a quantitative working capital test but must have adequate working capital to carry on their business.
Regulatory Compliance Policies: Reinforce issuer compliance with TSE disclosure policies and require companies to retain capable and experienced management.
Suspension Review Process: The TSE has also adopted a more systematic review process that includes a 120-day remedy period for companies falling below the continued listing standards. The market will be given notice of the suspension review at the time the company is advised. If the company is unable to meet the continued listing standards in that time frame, the market will be given a 30-day notice before suspension.
The TSE still reserves the right to suspend a company immediately when events indicate that suspension is in the public interest; for example, bankruptcy or insolvency.
Gerald Ruth, TSE Director of Company Listings, said, "These changes bring the requirements in line with the original listing requirements that were raised in 1998." He added, "at the TSE, we want to ensure a transparent market for all participants. Investors are much better served by the introduction of a more systematic and objective suspension process. "
The fully automated Toronto Stock Exchange consistently ranks among the world's top exchanges by market capitalization and trading volume. In 2000, the average daily value of TSE trading has exceeded $3 billion. The TSE provides investors with a well-regulated, fair and accessible marketplace.
