In a recent progress report (the Report), the TSX Venture Exchange (TSXV) has provided an update to the initiatives outlined in its December 2015 white paper which detailed a revitalization plan for the exchange. The Report was released following a series of town hall meetings hosted by the TSXV.
In addressing the TSXV’s commitment to reducing clients’ administrative and compliance costs, the TSXV has, among other things, made automated online filings available for private placement transactions and it is expected that additional online filings and electronic payments will be developed. In addition, policy revisions with respect to the TSXV’s sponsorship and shareholder approval requirements are expected to be filed with the regulators for approval in the first half of 2016. Relatedly, one of the revisions that will be filed for approval, which was first announced in a TSXV Bulletin dated March 30, 2015, is the waiver in certain circumstances of the shareholder approval requirement for reverse takeovers and changes of business provided certain conditions are met.
According to the Report, efforts have been made to increase awareness of the TSXV and to promote TSXV-listed companies through enhancing the TSX Venture 50 program, increasing the number of TSX Investors Days scheduled for 2016, launching a European roadshow and creating Investor webinars. Various programs have been developed such as the TSX Discovery, a new stock screening tool to help investors identify companies of interest and the TSX “investinit” website and app, which streams financings of listed companies, to facilitate more communication between issuers and investors.
Moreover, to increase the number of early-stage companies listed, the TSXV has made a submission to the House of Commons advocating for early-stage public companies to qualify for the refundable investment tax credit under the Scientific Research and Experimental Development Tax Incentive Program. The submission also recommended that the flow-through share program be directed towards technology sectors. Finally, the TSXV has elevated the priority of two specific initiatives: (1) examining filing procedures to save clients time and money, and (2) addressing concerns related to market structure and short selling rules.
The TSXV has confirmed its commitment to moving forward on all the initial initiatives and to continuing to provide additional information and updates on the revitalization plan. For further information, please see Revitalizing TSX Venture Exchange Canada’s Public Venture Market March 2016 Progress Report.