Costs Of Listing
Costs & Benefits Of Listing On The TSXV
The costs of listing on the TSXV can be found in our FAQ section – see FAQs .
Compared with other stock exchanges, the TSXV is an ideal public stock exchange for the following reasons:
relatively low cost to make the initial listing;
relatively low costs to maintain the listing;
access to North American investors / capital markets;
TSXV is properly regulated (provides for investors’ confidence in the listed companies);
provides companies with access and exposure to the North American consumer market place (excellent position to provide exposure of new technologies / business to North American consumers).
great place to gain initial experience as a public company for relatively low costs and low risk; after which the listed company can graduate to a larger exchange such as the TSX, New York Stock Exchange or the NASDAQ.
Original Listing Fees for TSXV range between $5,000 and $30,000, with an annual sustaining fee payable after the first year. There are also additional fees for certain transactions, such as property acquisitions, secondary public offerings and private placements.
Securities Commission Fees
Securities commissions will charge an administrative fee for a prospectus filing, as well as for additional filings. Fees vary by province, so please check with your local securities commission or your legal counsel for specifics.
There will also be an additional brokerage fee, calculated based on a percentage of gross proceeds, payable to the underwriter who handles your prospectus filing.
The sponsorship fee is a third-party cost, payable to a recognized Participating Organization or Member to conduct a due diligence study ensuring that your company meets Exchange listing requirements. Sponsorship will be required if the business involves unproven or unique technology, regardless of sector, or has foreign business assets.
Fees for an initial public offering, reverse takeover or qualifying transaction can range from $15,000 to $50,000, although costs may be higher depending on the level of due diligence required. For example, more due diligence would be required for a company with foreign business assets.
For a Capital Pool Company, sponsorship fees range between $8,000 and $12,000.
Investment Dealer Fees
The investment dealer who will be selling your company’s securities into the marketplace will charge a negotiable sales commission ranging from 6%-10% of the value of the securities sold plus a warrant. This sales commission will be paid out of the offering proceeds.
The investment dealer may also charge a corporate finance fee, although this is usually combined with the sponsorship fees listed above.
Audit costs vary depending on the complexity of your company, the state of its accounting records, and its financial position. The cost of auditing an operating company for the first time may range between $12,000 and $80,000, although may be higher if a company has foreign operations. There may also be costs for additional services, such as comfort letters.
Legal fees for a Canadian company listing on the Exchange generally range from $50,000 to $100,000. As well, foreign companies and certain types of businesses (e.g. business trusts) may incur higher legal fees.
Legal counsel must conduct due diligence to help management ensure there is full, true and plain disclosure to the public of all material facts about the company. Legal costs associated with going public will vary depending on the quality and quantity of documents prepared by the company and the complexity of the business.
Costs Of Maintaining A Public Company
Once your company is listed, you can expect to incur additional legal and accounting fees on an annual basis that are over and above what you incurred as a private company. This is a result of the additional reporting requirements that are incurred as a result of a public listing, as well as the cost of complying with corporate governance standards.
Your legal and investor relations fees may also be higher if you need help to meet your company’s continuous disclosure requirements, including quarterly financial statements or news releases.
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