"Technology is a key sector for the TSE forming the largest part of the TSE 300 Composite Index. This year, technology companies continue to drive our new listings. Companies such as 360networks Inc., 724 Solutions Inc., Cell-Loc Inc., OnX Incorporated and GT Group Telecom Inc. which have been among the largest IPOs and listings on the TSE in 2000" said Clare Gaudet, Vice President of Corporate Finance Services at the TSE.
The new criteria focus on the level of investor support, adequacy of funds, Management and stage of commercialization of products or services. Specifics include:
CAD50 million minimum market value of listed shares; CAD10 million minimum market value of public float; CAD10 million minimum in the treasury; evidence that a company's products or services are at an advanced stage of development or commercialization; sufficient funds to cover planned development, capital and operating expenses for one year.
"The door has always been open for well financed, leading technology companies, but formally introducing these requirements establishes clear benchmarks for companies seeking a TSE listing. These new criteria, combined with the previously announced changes to the Canadian escrow regime, confirms the TSE's recognition of new economy companies and its responsiveness to changes in the economy and market conditions" said Ms. Gaudet.
At the end of March, the Canadian Securities Administrators announced changes to the escrow regime in Canada. The maximum escrow term for TSE eligible issuers is now 18 months and many larger issuers will be exempt from escrow entirely. In conjunction with the new escrow regime the TSE also announced that it was discontinuing its practice of scrutinizing, and in some cases disallowing, pre-IPO options granted at a discount to the IPO price.
"The TSE continually examines listing policies and criteria to ensure their relevance and that they reflect the Canadian economy and changes in industry fundamentals," continued Ms. Gaudet. "It was time to establish formal listing requirements for technology companies."
The TSE will adopt the criteria immediately, on an interim basis, subject to OSC approval.
The TSE 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 $4 billion. The TSE provides investors with a well-regulated, fair and accessible marketplace.
