Updated: Jul 15
Knowing the listing requirements of each security exchange can help you better understand whether or not your company is ready to go public. In this post, we will address the listing requirements for the CSE.
The CSE, formerly the Canadian National Stock Exchange, offers simplified reporting requirements compared to the TSX or the TSX-V. The exchange is designed to specifically meet the needs of public companies and investors, and has specific listing requirements for industrial companies, mining companies and real estate/investment companies.
A prospective equity securities issuer on the CSE must meet one of the following general requirements:
1) An operating company with revenue from sales of goods or services.
2) A non-operating company with capital assets to carry out its operations for 12 months following the listing. The company is subject to a minimum of $200,000 in working capital at the time of listing and have advanced to a stage of development.
3) A company listed on a Canadian exchange and is not proposing a transaction or alteration that would be considered a material change of business, given that the company has the financial means to achieve stated objectives for 12 months post listing.
In regard to float and distribution of securities, the CSE requires a public float of at least 500,000 free trading shares and a minimum of 150 shareholders that hold at least a board lot each of the security being offered. It is also important to note that 10% of the issued and outstanding shares must be held by public shareholders. For a non-operating company, understanding the proper working capital and structure is vital when listing on a Canadian exchange. The CSE requires a minimum of $200,000 in working capital at the time of listing and requires the issuer to have financial resources to carry out a work plan for 12 months after the listing. The CSE ensures that the operators of the company looking to list have significant interest in its primary business or asset, and requires officers, directors, related persons and investor relations persons associated with the company to have a clean record.
It is imperative to highlight that mineral, energy, and investment and real estate companies may have to adhere to additional requirements in order to list on the CSE.
If your company is ready to list on the CSE or needs more information in order to make the best decision, try reaching out to our expert team who will be more than happy to answer your questions. Provided is a link to our Team's page if you are interest in getting in touch: https://www.gopublic.ai/team
*For more information, please visit the CSE website.