TSE Raises Continued Listing Requirements

The Toronto Stock Exchange (TSE) announced today it is raising continued listing standards to ensure these standards are in alignment with original listings requirements which were raised last fall. The changes to the continued listing standards are effective immediately on an interim basis, subject to regulatory approval by the Ontario Securities Commission (OSC). The changes will be published in the OSC Bulletin for comment. There will be a 6-month "grandfathering" period for TSE companies to meet the new standards. "The revisions also support the thrust of the realignment under which the TSE becomes the senior exchange for equities in Canada," said Clare Gaudet, TSE Vice-President of Corporate Finance Services. "The raising of continued listing requirements will improve the overall quality of TSE listings to ensure their attractiveness to investors." Among the key amendments: A minimum market capitalization requirement of $3 million coupled with an increase in the market value of the public float requirement to $2 million (from $1 million.); An increase in company assets to $3 million (from $2 million) and revenues to $3 million (from $1 million) that will help the TSE identify companies with reduced activity levels or unsatisfactory financial results; The new requirements will reinforce that companies must comply with TSE disclosure policies and require that companies retain, on an ongoing basis, capable and experienced management; A more transparent and clear suspension review process is introduced to promote the timely and efficient application of the new continued listings criteria. This will include a 120-day remedy period for companies that fall below listing standards. The market will be provided with a 30-day notice period of a company's suspension. As always, the TSE 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 amendments will ensure a healthy, liquid market to the benefit of investors and our listed companies. Investors will be better served by the introduction of a more systematic and objective suspension process. " This review of TSE continued listing standards follows the increases in original listings standards, introduced in 1998. The TSE reviews listing standards regularly to maintain the high quality of listings and to reflect changing market conditions. Continued listing standards were last revised in 1995. Listed companies will be receiving letters and details on the new requirements in the coming days. These requirements will help companies determine if they will stay on the TSE or move to the junior market. The fully automated Toronto Stock Exchange consistently ranks as one of the world's top exchanges and is Canada's premier market for senior equities, accounting for approximately 90% of all equity trading in Canada. In 1998, more than 26 billion shares traded, worth more than $490 billion - about $2 billion a day in share transactions. With a proud 147-year history at the heart of the Canadian economy, the TSE continues to provide Canadian and international investors with a well-regulated, fair and accessible marketplace.