Updated: Jul 14
Understanding the listing requirements of each security exchange can help you better guage whether or not your company is ready to go public. In this post, we address the listing requirements for the NEO exchange.
The NEO is a new equities market that is majority-owned by large institutional investors. It is a recognized Canadian exchange and focuses on senior public companies and investment products. In addition to listing its own securities, it trades all TSX, TSX-V and CSE securities and is accessible to investors via all major online trading platforms.
Minimum Listing Requirements - The NEO Exchange
At the time of application when listing on the NEO Exchange, the company must satisfy the requirements of at least one of the following categories:
1. Equity Standard:
The company must exhibit shareholders’ equity of at least $5,000,000, along with an operating history of at least two years, and an expected market value public float of a minimum $10,000,000.
2. Net Income Standard:
The company has a net income of at least $750,000 from ongoing operations within the last fiscal year or within two of the last three fiscal years. In addition, the company must have shareholders’ equity of a minimum $2,500,000 along with an expected market value public float of at least $5,000,000.
3. Market Value Standard:
The company’s market value of all securities is at least $50,000,000 based on the following:
1. (A) the market value of securities listed on a recognized exchange or an accepted foreign exchange or both, or;
2. (B) the amount derived from combining the market value of securities listed on a recognized exchange or an accepted foreign exchange, or both.
If the market value standard is met under (B), then shareholders’ equity must be at least $2,500,000 and the expected market value of public float is a minimum of $10,000,000.
4. Assets and Revenues Standard:
The total assets and revenues of the company must be a minimum of $50,000,000 each in the last fiscal year or in two of the last three fiscal years. This is in addition to an expected market value public float of at least $5,000,000.
5. Working Capital and Capital Structure:
In regard to capital structure, the company must show adequate working capital to carry on business and a suitable capital structure.
If your company is ready to list on the NEO exchange or needs more information to facilitate the best decision, try reaching out to our expert team who will be more than happy to answer any questions that arise. 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 Neo Exchange website.