TSXV considering faster, cheaper junior market

In an effort to bolster the public market for junior companies and investors, the TSX Venture Exchange (TSXV) is considering the launch of a new exchange.

The idea is among a series of initiatives designed to enhance the venture market by reducing compliance costs, speeding capital raising, and increasing efficiency.

The proposed new exchange would cater to earlier-stage companies, alternative asset classes and investors.

In a report outlining the plan, TSXV said it would provide companies with “a digital-first user experience and a streamlined oversight model so that their management teams can dedicate more time to building their businesses. We will also explore investor appetite for supporting such companies.”

The idea would be to give younger companies a faster, cheaper route to raising capital and public listing.

“Entrepreneurs will benefit from new ways to access the public market, accelerated review times and lower costs. Investors will benefit from new opportunities to fund unique businesses,” the exchange said.

For more established companies, the exchange said it will introduce a new “passport listing process” that would expedite listing for companies with a minimum pre-listing valuation of $50 million and at least $10 million in arm’s length financing, among other conditions.

Companies that qualify for the new listing process would benefit from increased process transparency, it said.

The exchange plans to speed up existing reviews by increasing digital access to its products and redesigning the processes for approving new listings, reverse takeovers and other sorts of transactions.

Finally, it’s also planning to launch a “sandbox” to facilitate the listing of novel companies or transaction structures.

“This is an exciting day for TSXV, as we share our commitments and plans to address near-term stakeholder challenges and build Canada’s vibrant and vital public venture market stronger for the future,” said Loui Anastasopoulos, CEO of the Toronto Stock Exchange and global head, capital formation for TMX Group, in a release.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.