TSX GROUP
Israel 2008
© 2008 TSX Inc. All rights reserved. Do not copy, distribute or modify this document without TSX Inc.’s prior written consent.
Providing Access to North American Capital for
Growth-Orientated Israeli Companies
Raymond D. KingSenior Manager, Global Diversified Industries – Listings Business DevelopmentToronto Stock Exchange & TSX Venture Exchange
2
Disclaimer
This document is for information purposes only and is not an invitation to purchase securities listed
on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TSX Group Inc.
and its affiliates do not endorse or recommend any securities referenced in this document. Please
seek professional advice to evaluate specific securities.
While the information herein is collected and compiled with care, neither TSX Group Inc. nor any of its
affiliated companies represents, warrants or guarantees the accuracy or the completeness of the
information. You agree not to rely on the information contained herein for any trading, business or
financial purpose.
This information is provided with the express condition, to which by making use thereof you expressly
consent, that no liability shall be incurred by TSX Group Inc. and/or any of its affiliates as a result
of any errors or inaccuracies herein or any use or reliance upon this information.
© 2008 TSX Inc.
3
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
4
Pink sheets
OTC BB
NASDAQ
NYSE
• No listing standards
• Senior listing standards
• Disclosure rules
• Junior listing standards
North American Stock Markets Continuum
TSX
CNQ
5
Access to Capital
SizeLarge Peer Group
TSX Group is 2nd in the world and 1st in North America by number of
listed public companies
Total of 3,951 companies:• 1,613 on TSX• 2,176 on TSX Venture Exchange• 162 on NEX
Source: World Federation of Stock Exchanges
TSX Group is 3rd in North America and 7th in the world by total listed
company market capitalization ($2.2 Trillion)
Source: World Federation of Stock Exchanges By Domestic Market Cap, December 31, 2007
TSX Group’s equity exchanges are among the best markets in the world for raising
public equity capital
• 7th in the world in 2007
Source: World Federation of Stock Exchanges By total dollar amount raised
Unless noted, all stats are as at December 31, 2007
Market Performance
S&P/TSX Indices Outperform
Source: BloombergTotal Cumulative Return
Sept 30 2002 to Sept 30 2007
TSX Group is a world leading marketplace
6
2,176 companies72 companies graduated to senior market in 200767 companies graduated to senior market in 2006
1,613 companies
TSX Venture Exchange
• Access to capital for earlier stage companies or smaller financings
• Cost effective stepping stone for international companies looking to list on a quality North American market
• Exchange mandate to mentor management of newly public companies
• Streamlined graduation to TSX when senior market requirements are met
• 101 year history
Toronto Stock Exchange
• Senior market for well established businesses and management teams with experience in public markets
• Access to larger and more international institutional investors and greater analyst coverage
• Globally visible specialized indices
• 155 year history
*As at 31 December 2007 (excludes NEX)
Total of 3,738 listed companies*
TSX Group serves companies at different stages of development, and…
7
0% 2% 3%
10%
14% 16%19%
12%9%
15%
26%
17%
22%
12%
6%4%
1% 0% 0%
13%
<1 1-5 5-10 10-25 25-50 50-100 100-250 250-500 500-1B >1B
TSX TSX Venture
Market Capitalization (C$MM)
As at 31 December 2007
Toronto Stock Exchange:1,613 issuers, Market Cap = $2.09 Trillion
TSX Venture Exchange:2,176 issuers, Market Cap = $58.1 Billion
…TSX Group of exchanges support companies at ALL stages of their growth
8
Canadian equity marketplace ideal for small to mid-cap IPOs
185
142123
272 268
338
232
91 94 81
208199197
233
2001 2002 2003 2004 2005 2006 2007
Canada USA
Total IPOs in Canada and U.S.
Average amount raised during IPO (2007)
U.S. markets: US$234.1 million
TSX: US$73.9 million
TSX Venture: US$2.2 million
Source: Hoovers IPO Central
9
TSX Group: Providing Access to CapitalThrough Equity Financing
2003 2004 2005 2006 2007
Public Offerings Private Placements IPOs
Equity Financing on TSX and TSX Venture Exchange
(C$ Billions)
$40.0
$49.7$50.7 $52.2
$58.8
10
Total Going Public Activity: TSX and TSX Venture Exchange
223 212259 281
366
128
207
197223
204
0
50
100
150
200
250
300
350
400
450
500
550
600
2003 2004 2005 2006 2007
TSX Venture Exchange TSX
*Going Public Activity includes RTOs and QTs on TSX Venture Exchange
351
416
482 478
573
11
TSX and TSX Venture Exchange have had consistent growth in liquidity
55.661.3 64.2
82.0
96.1
2003 2004 2005 2006 2007
Billions of Shares
• 5-Year CAGR 14.7%
• 2007 Volume up 17% vs. 2006
Toronto Stock ExchangeVolume of Shares Traded
Toronto Stock ExchangeVolume of Shares Traded
13.316.6
21.1
37.1
52.6
2003 2004 2005 2006 2007
Billions of Shares
• 5-Year CAGR 41.0%
• 2007 Volume up 42% vs. 2006
TSX Venture ExchangeVolume of Shares Traded
TSX Venture ExchangeVolume of Shares Traded
12
US firms that trade TSX as a Participating Organization
• CSFB• Citigroup• E*Trade• FIMAT/SocGen• Goldman Sachs• HSBC• Instinet• Interactive Broker• ITG• Merrill Lynch• Morgan Stanley• Penson
• Raymond James• Refco• State Street• Timberhill• UBS
US offices of Canadian “Big 6 Banks”:
• BMO Nesbitt Burns• CIBC World Markets• RBC Dain Rauscher• Scotia Capital Markets• TD Securities• NBF Financial
40% of TSX Group trading originates from US-based Participating Organizations servicing their US institutional
and retail client portfolio
13
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
14
TSX Group International Business Development Markets
INDIADiversified
CHINAAll Sectors
AUSTRALIAMining/Energy/
Industrials
AFRICAMining
USAAll Sectors
SOUTH AMERICAMining/Energy/
Industrials
ISRAELTech/
Industrial
Pilot market Expand activitiesResearch market
UK/EUMining/Energy/
Cleantech
RUSSIA *
Mining/Energy
15
Offering Size – Israeli Companies Perspective
TSX, NASDAQ and AIM Overview
$142.0
$83.2
$20.0$8.2
-$10.0
$10.0
$30.0
$50.0
$70.0
$90.0
$110.0
$130.0
$150.0
NYSE NASDAQ AIM TASE
Average Size of Israeli Companies Offering by Market (2004 – 2006)
Source: IVC-Online and CIBC World Markets.Note: Includes IPOs and Follow-on offerings. Excluding real-estate, gaming industry offerings and exceptional size offerings (Teva).
Potential TSX Offering
16
TSX Group International ListingsAs of December 31, 2007
Australia/ New Zealand/ Papua New Guinea, 27,
11%
USA, 130, 54%
UK/ Europe, 23, 10%
China, 37, 15%
South America, 4, 2%
South Africa/ Africa, 10,
4%
Other* * , 9, 4%
Toronto Stock Exchange 146 international listings with QMV=$197.6 Billion
TSX Venture Exchange94 international listings withQMV=$3.4 Billion
*Based on location of company headquarters** Other includes Bermuda, Barbados, British West Indies, Channel Islands, Guernsey
17
TSX Group International New Listingsby Country
2002 2003 2004 2005 2006 2007
China
South Africa/ Africa
UK/ Europe
South America
Australia/ New Zealand
Other
USA
15
42
29
36
TSX Group’s new international listings
Oil & Gas, 4, 8% Technology, 2,
4%
Mining, 27, 56%
Life Sciences, 4, 8%
Diversified Industries, 10, 20%
Financial Services, 2,
4%
TSX Group New International Listingsby Sector
2007
Total = 49Total = 49
* Other includes Bermuda, Barbados, British West Indies, Channel Islands and Guernsey
49
15
18
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
19
Project /Project /IdeaIdea
R&D or R&D or Prototype Prototype
CommercialCommercialStageStage
StableStableProductionProduction
OperatingOperatingHistoryHistory
Pink Sheets/OTCbb
TSX Venture Candidates
TSX Candidates
NASDAQ Candidates
AIM Candidates
TSX Group exchanges are designed for companies at all stages of growth
Venture CapitalistsAngelsFounders, Family/FriendsPrivate Equity Candidates
20
Market Comparison: TSX, Nasdaq, AIM
TSX VentureTSX and Venture AIM Nasdaq
Number of Issuers Listed 1613 2176 3789 1694 3069
Quoted Market Value (C$ Billions) $2,093.5 $58.1 $2,151.6 $197.5 $4,026.3
Going Public Activity 207 366 573 284 290
Equity Capital Raised (C$ Billions) $47.6 $11.1 $58.8 $34.8 $17.4**
Volume Traded (Billions of Shares) 96.1 52.6 148.7 153.9 N/A*
Value Traded (C$ Billions) $1,697.2 $44.8 $1,742.0 $161.2 $16,465.8
Number of Trades (Millions) 118.6 8.6 127.2 4.2 1654.2
Market Data for 2007 (C$)
As at December 31, 2007*Nasdaq information not available.**Nasdaq information does not include secondary financings
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TSX surpassed AIM by total equity capital raised, quoted market value and value traded
TSX TSX Venture Exchange TSX and TSX Venture AIM
Number of Issuers Listed 1598 2080 3678 1634Quoted Market Value (C$ Billions) $2,061.3 $54.9 $2,116.2 $213.6New Listings 197 186 383 462Equity Capital Raised (C$ Billions) $41.8 $7.9 $49.7 $32.7
Volume Traded (Billions of Shares) 82.0 37.1 119.1 138.5Value Traded (C$ Billions) $1,416.1 $33.1 $1,449.2 $121.1Number of Trades (Millions) 85.7 6.4 92.1 3.5
TSX TSX Venture Exchange TSX and TSX Venture AIM
Number of Issuers Listed 1613 2176 3789 1694Quoted Market Value (C$ Billions) $2,093.5 $58.1 $2,151.6 $197.5New Listings 207 366 573 284Equity Capital Raised (C$ Billions) $47.6 $11.1 $58.8 $34.8
Volume Traded (Billions of Shares) 96.1 52.6 148.7 153.9Value Traded (C$ Billions) $1,697.2 $44.8 $1,742.0 $161.2Number of Trades (Millions) 118.6 8.6 127.2 4.2
2007
2006
• Source: TSX, LSE and AIM (TSX analysis of public information)
22
TSX TSX Venture
ExchangeTSX and TSX
Venture LSE AIMLSE and
AIM
Number of Mining Issuers Listed 341 1032 1373 42 187 229Quoted Market Value (C$ Billions) $337.8 $34.5 $372.3 $499.5 $30.3 $529.8New Mining Listings 78 108 186 11 22 33Equity Capital Raised (C$ Billions) $11.8 $7.2 $19.1 $4.1 $5.2 $9.3
Volume Traded (Billions of Shares) 42.0 37.4 79.3 n/a 23.8 n/aValue Traded (C$ Billions) $448.8 $33.1 $481.9 $920.4 $27.6 $947.9Number of Trades (Millions) 37.2 6.4 43.6 11.90 0.72 12.62
2007
• Source: TSX, LSE and AIM (TSX analysis of public information)
TSX TSX Venture
ExchangeTSX and TSX
Venture LSE AIMLSE and
AIM
Number of Mining Issuers Listed 291 983 1274 36 186 222Quoted Market Value (C$ Billions) $287.7 $35.1 $322.8 $394.9 $39.7 $434.5New Mining Listings 65 47 112 2 53 55Equity Capital Raised (C$ Billions) $7.7 $4.8 $12.5 $8.3 $2.4 $10.8
Volume Traded (Billions of Shares) 33.2 25.6 58.8 n/a 16.5 n/aValue Traded (C$ Billions) $347.8 $21.6 $369.4 $640.7 $18.0 $658.8Number of Trades (Millions) 22.6 4.5 27.1 6.6 0.52 7.11
2006
TSX Group continued to outperform AIM in the mining sector – # of issuers, new listings, and equity financing
23
TSX TSX Venture
ExchangeTSX and
TSX Venture LSE AIMLSE and
AIM
Number of O&G Issuers Listed 158 266 424 37 103 140Quoted Market Value (C$ Billions) $526.7 $11.2 $537.9 $1,523.0 $21.9 $1,544.9New O&G Issuers 12 21 33 4 14 18Equity Capital Raised (C$ Billions) $7.5 $1.7 $9.2 $0.1 $2.3 $2.3
Volume Traded (Billions of Shares) 14.3 6.9 21.1 n/a 18.1 n/aValue Traded (C$ Billions) $330.5 $6.5 $337.0 $705.8 $21.3 $727.1Number of Trades (Millions) 23.1 1.0 24.1 7.5 0.7 8.2
2007
• Source: TSX, LSE and AIM (TSX analysis of public information)
TSX TSX Venture
ExchangeTSX and
TSX Venture LSE AIMLSE and
AIM
Number of O&G Issuers Listed 166 266 432 33 98 131Quoted Market Value (C$ Billions) $521.3 $10.3 $531.6 $1,353.1 $23.3 $1,376.3New O&G Issuers 17 14 31 5 24 29Equity Capital Raised (C$ Billions) $8.8 $1.6 $10.5 $0.7 $3.2 $3.8
Volume Traded (Billions of Shares) 13.4 5.8 19.2 n/a 24.2 n/aValue Traded (C$ Billions) $339.5 $7.7 $347.2 $697.9 $21.7 $719.6Number of Trades (Millions) 19.3 1.1 20.3 5.5 0.8 6.2
2006
TSX Group dominated oil and gas sector in # of issuers and equity financing
24
TSX Group Tech Sector: Going Head-to-Head with AIM
TSX TSX Venture
ExchangeTSX and
TSX Venture AIM
Number of Tech Issuers Listed 113 221 334 244Quoted Market Value (C$ Billions) $102.6 $3.8 $106.4 $17.5New Tech Issuers 12 18 30 26Equity Capital Raised (C$ Billions) $1.0 $0.7 $1.7 $1.7
Volume Traded (Billions of Shares) 5.2 3.9 9.1 18.8Value Traded (C$ Billions) $73.0 $2.1 $75.0 $12.5Number of Trades (Millions) 6.6 0.5 7.1 0.5
TSX TSX Venture
ExchangeTSX and
TSX Venture AIM
Number of Tech Issuers Listed 117 229 346 235Quoted Market Value (C$ Billions) $71.1 $2.8 $73.9 $15.9New Tech Issuers 9 17 26 50Equity Capital Raised (C$ Billions) $1.4 $0.4 $1.8 $1.1
Volume Traded (Billions of Shares) 6.5 2.0 8.5 16.6Value Traded (C$ Billions) $50.3 $1.0 $51.3 $7.5Number of Trades (Millions) 5.0 0.3 5.3 0.3
2006
2007
• Source: TSX, AIM (TSX analysis of public information)
25
TSX Group Life Sciences Sector: Going Head-to-Head with AIM
TSX TSX Venture
ExchangeTSX and
TSX Venture AIM
Number of Life Sciences Issuers Listed 90 50 140 117Quoted Market Value (C$ Billions) $17.8 $1.0 $18.9 $7.9New Life Sciences Issuers 7 3 10 15Equity Capital Raised (C$ Billions) $1.128 $0.009 $1.137 $0.9
Volume Traded (Billions of Shares) 3.7 0.9 4.6 11.5Value Traded (C$ Billions) $15.8 $0.7 $16.5 $6.0Number of Trades (Millions) 3.0 0.2 3.1 0.3
TSX TSX Venture
ExchangeTSX and
TSX Venture AIM
Number of Life Sciences Issuers Listed 87 57 144 113Quoted Market Value (C$ Billions) $22.0 $0.7 $22.7 $9.2New Life Sciences Issuers 7 6 13 21Equity Capital Raised (C$ Billions) $0.8 $0.2 $1.0 $0.9
Volume Traded (Billions of Shares) 2.5 0.4 2.9 12.9Value Traded (C$ Billions) $15.3 $0.3 $15.6 $3.9Number of Trades (Millions) 2.4 0.1 2.5 0.2
2006
2007
• Source: TSX, AIM (TSX analysis of public information)
26
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
27
Market Overview
* Includes IPOs, CPCs, RTOs, QTs, TSX comedowns and Other
2006 YTD Dec 2007 YTD Dec % Change
Listed Companies 2,080 2,176 +5%
Total Market Cap $54.9 B $58.1 B +6%
Median Market Cap $8.2 M $8.1 M -1%
Average Market Cap $26.4 M $26.7 M +1%
Financings $7.9 B $11.1 B +41%
Average Financing $3.0 M $4.3 M +43%
Going Public Activity 281** 366** +30%
Graduates 67 to TSX 72 to TSX +7%
28
Trading
Source: TSX Venture Review
2006
2007
% CHANGE
VOLUME: Total Volume Average Daily Volume
37.1 Billion 147.7 Million
52.6 Billion 208.8 Million
+41.9% +41.4%
VALUE: Total Value Average Daily Value
$33.1 Billion $131.7 Million
$44.8 Billion $177.8 Million
+35.5% +35.0%
TRANSACTIONS: Total Transactions Average Daily Trans.
6.4 Million 25,593
8.6 Million 34,188
+34.1% +33.6%
Average Price Per Share
$0.89
$0.85
-4.5%
29
TSX Venture: Financings by Type
$533$1,251
$2,124
$3,686
$5,608
$7,060
$9,754
$855$370$257$194$72 $120 $446$270 $197$115 $132
0
2,000
4,000
6,000
8,000
10,000
12,000
2002 2003 2004 2005 2006 2007
Mil
lion
s (
$)
Initial Public Offering
Public Company Private Placement
Public OfferingPublic Offering
30
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
31
TSX Group Advantage to Listing In Canada
• Canada is the market of choice for global small and mid-cap companies
– Top-3 global player in technology and life sciences– Diverse cross-section of listed companies in a variety of sectors
• Standards-based exchanges that promote integrity for public SMEs
– Access to specialized products for TSX Group listing (e.g. Capital Pool Company® program)
• Sustained access to capital – steady growth of capital investment over past 5 years
• Strong equity culture – 49% of Canadians hold equities
• Strong trading liquidity – 30% increase in trading over past 5 years
• Lower trading impact costs on TSX
• Analyst coverage typically seen at an earlier stage
• Canadian regulatory commissions and exchanges are:
– Customer-focused– Principles rather than rules based– Employ a flexible corporate governance approach, particularly for TSX Venture
Exchange companies (e.g. exemption from Internal Control Certification)
32
Special Considerations for US and International Companies Listing on TSX Group
• Foreign Property Rules lifted by Canadian Revenue Agency – no investment restrictions on foreign companies
• US disclosure documents accepted in Canada
– “Multi-jurisdictional Disclosure System” (MJDS) allows access to Canadian capital markets using US documents
• US GAAP, IFRS Accounting and Audit Standards are accepted
• Companies already listed on another senior market may be exempt from certain requirements
– Need to apply for continuous disclosure from securities commissions
• Board and management must have adequate relevant North American public company experience
• Must have a plan for adequate shareholder base & distribution of shares to support a liquid market on TSX
• Canadian office not required
• Recommend a contact person in Canada to be accessible for shareholder and analyst inquiries
33
Lower cost to list on TSX:Original Listing Fee Comparison
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
(Canadia
n $
)
TSX TSXV NYSE NYSE* AMEX NASDAQ NASDAQSC
ASX LSE AIM
Minimum Fee Maximum Fee
* Proposed
34
Competitive sustaining fees on TSX
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
(Canadia
n $
)
TSX TSXV NYSE NYSE* AMEX NASDAQ NASDAQSC
ASX LSE
Minimum Fee Maximum Fee
*Proposed
35
Canadian Escrow Policy competitive with the US
• Applies to principals whose continuing role is relevant to an investor’s decision to subscribe to the IPO
• Escrow not required for:– TSX exempt issuers– TSX non-exempt issuers
with a Market Cap of at least CDN $100 Million
Time from Listing Date
Release of Securities
Date listed on TSX
1/4 of escrow securities
6 months after listing date
1/3 of escrow securities
12 months after listing date
1/2 of escrow securities
18 months after listing date
Remaining escrow securities
36
1. TSX Group Overview – A Globally Competitive Exchange
2. International Development Initiatives
3. Competitive Positioning of TSX Group
4. TSX Venture Exchange
5. Considerations for Listing
6. Contact Information
Discussion Outline
37
TSX Business Development Team
NAME POSITION/SECTOR NUMBER EMAIL
Janis Koyanagi Director, TSX - International Development & Strategy 416.947.4467 [email protected]
Delilah Panio Director, TSXV – US Development & Strategy 416.365.2213 [email protected]
Raymond King Senior Manager – Global Diversified Industries/Israel/India 416.947.4675 [email protected]
Greg Ferron Senior Manager – Global Mining/Africa/Australia 416.947.4477 [email protected]
Susan McLean Senior Manager – Global Cleantech & Structured Financial Products/ETFs 416.947.4305 [email protected]
Christa Dewar Senior Manager – US Business Development Campaign 416.947.4636 [email protected]
TBD Senior Manager – Global Energy/South America 416.947.4467 [email protected]
Gina Pappano Senior Manager – Market Intelligence 416.947.4272 [email protected]
Annie Tao Manager – China Business Development 416.947.4273 [email protected]
38
Raymond D. KingSenior Manager, Global Diversified Industrials – Listings
Business Development
Toronto Stock Exchange & TSX Venture Exchange
Contact Information
39
Appendix A – Listing Requirements
40
Criteria Senior ProfitableForecasting
ProfitR&D Tech
Public Distribution• # shareholders• Public float -shares• Public float - $• Total market value
Financial Requirements
• Net tangible assets• Pre-tax earnings• Pre-tax cash flow• Cash in treasury2
• Sufficient funds3
• Working capital • Capital structure
Other Criteria• Product/service
• Operating history
3001 million
$4 millionN/A
$7.5 million$300K
$700/$500N/AN/A
AdequateAdequate
3001 million
$4 millionN/A
$2 million$200K$500N/AN/A
AdequateAdequate
3001 million
$4 millionN/A
$7.5 million$300K1
$5001
N/AN/A
AdequateAdequate
3001 million
$4 millionN/A
N/AN/AN/A
$12 million2 years3
AdequateAdequate
Ability to commercialize
2 years
3001 million
$10 million$50 million
N/AN/AN/A
$10 million1 year3
AdequateAdequate
Advanced stage
1 forecast for current or next fiscal year2 raised via prospectus3 funds to cover expenses, R&D, and capex
Toronto Stock Exchange Listing Criteria
Listing Criteria for Industrial Companies
41
• Financing range: $500k to $20 million
• Multiple financing rounds = more ground-floor investing opportunity
• Acquisition currency
• Employee stock options
• Mentoring role
• Stepping stone to senior markets
• Streamlined graduation path to Toronto Stock Exchange
• Graduates leave with a track record
Why List on TSX Venture Exchange
42
TSX Venture Exchange Listing Requirements Tier 1: Technology or Industrial
Category 1 Category 2 Category 3
Net Tangible Assets(incl. IPO $)
$1 M $5 M N/A
Earnings Before Tax $100,000 N/A $200,000
Working Capital 18 mos 18 mos + $100K
18 mos
Publicly Held Shares 1 M 1 M 1 M
Public Market Capitalization $1 M $1 M $1 M
Number of Shareholders 200 200 200
Percentage Held by Public 20% 20% 20%
* R&D MLR: Similar to Category 2 but $1,000,000 in prior R&D required and a $1,000,000 R&D program must be recommended.
43
TSX Venture Exchange Listing Requirements Tier 2: Technology or Industrial
Category 1 Category 2
Net Tangible Assets (incl. IPO $) $500,000 $750,000
Earnings Before Tax $50,000 N/A
Prior Expenditures or Revenue N/A $250,000
Working Capital 12 mos 12 mos + $100K
Other N/A Sufficient testing to show commercial viability
Minimum IPO Price $0.15 $0.15
Publicly Held Shares 500,000 500,000
Number of Shareholders 200 200
Percentage Held by Public 20% 20%