Minamar >> Going Public in Canada

IPO or RTO GOING PUBLIC IN CANADA

Are you thinking of Going Public in Canada? Are you Seeking Investment for your Products, Services, or a Business Plan? Considering Venture Capital? Or just, a source of ongoing capital to properly grow your business?

Canada has a robust capital market, as well as strength in funding growth ventures. Getting access to funding opportunities can be facilitated by becoming a public company on the CSE stock market.

Being a Publicly Traded Company provides access to the Canadian Capital Markets and the many pools of Public Venture Capital that are available to emerging companies. It raises your corporate profile and puts you "on the radar" as a suitable investment opportunity for investors.

In Canada, the main choices of going public are the Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSX-V), and the CSE: Canadian Securities Exchange.

We invite you to consider the advantages of NEO or CSE as a destination to take your company public.

HOW DO YOU TAKE YOUR COMPANY PUBLIC IN CANADA?

Companies that go public on a stock market in Canada become a reporting issuer with one or more of the Provincial Securities Commissions. Once a company becomes a reporting issuer, it is subject to ongoing public disclosure and reporting requirements.

The definition of a Reporting Issuer is:

"A company that has issued shares to the public and is subject to continuous disclosure requirements by one or more of the provincial securities commissions."

Companies can become a reporting issuer in Canada in many ways, but the two most common are by qualifying a Prospectus, or completing a Reverse Take Over with a reporting issuer. Each company on CSE is a reporting issuer in one or more province.

If you are not currently a reporting issuer there are many methods to achieve this status, including a merger or an amalgamation with a reporting issuer, qualifying a Non-Offering or Offering Prospectus or completing a Reverse Take Over (RTO). The two most common methods used by companies looking to go public are through filing and clearing a prospectus with at least one Provincial Securities Commission, or completing a Reverse Takeover Transaction (RTO) with an existing reporting issuer:

PROSPECTUS

Companies can become reporting issuers by filing and clearing a prospectus, of which there are two types: an offering prospectus or a non-offering prospectus. Prospectuses must contain full, true and plain disclosure to investors and the public about the company.

OFFERING PROSPECTUS OR PROSPECTUS WITH DISTRIBUTION

This type of prospectus is issued when a company offers to sell its shares to the public in an IPO or Initial Public Offering.

NON-OFFERING PROSPECTUS OR PROSPECTUS WITHOUT DISTRIBUTION

A company may also choose to file a non-offering prospectus. A non-offering prospectus has many of the same disclosure requirements as an offering prospectus, but with no intention to sell shares to the public. The primary purpose of filing a non-offering prospectus is to become a reporting issuer.

REVERSE TAKE OVER (RTO)

An RTO is a transaction between the private operating company and an existing reporting issuer "shell", where the operating company's business is rolled into the existing reporting issuer "shell", and the operating company's shareholders ultimately acquire a controlling interest in the new, combined company. The term "shell" for reporting issuers is used because these issuers have previously ceased operations, but they still maintain their reporting issuer status and usually have the shareholders required to list on a stock exchange. This makes them ideal candidates to complete an RTO transaction to take a private company public.

If you are interested in going public and you currently meet NEO's or CSE's requirements or will meet them following a public offering, we encourage you to contact us and we can assist in completing the listing application form. The listing application and the required due diligence can be done concurrently during the process of become a reporting issuer in Canada.

Below you will find some information regarding the CSE, and all the opportunities they provide for listed companies.

BACK DOOR ACCESS TO USA

Best way to get listed in the US is through Canada. The process for USA companies is to list on the CSE and then subsequently dual list on the OTCBB. This is less expensive, quicker and cleaner. All the shareholders in the company are your own people, you will not have a percentage of shares left over from the previous company.

The time to complete all matters in most cases, are - TWO MONTHS ON AVERAGE FROM THE TIME WE RECEIVE YOUR CORPORATE AUDITS.

There are two requirements-

  1. working capital must be greater of a min. of $200,000 or the first year's budget
  2. must have at least 10% free trading shares with a min. of 150 shareholders each with a board lot - WE WORK WITH A MERCHANT BANK THAT WILL HELP FACILITATE THIS REQUIREMENT

All inclusive cost $335,000 US, plus a percentage of shares. MMG in conjunction with your company if you choose to will project manage the entire process from start to finish. No shares will be earned till the company goes public, MMG will also make the introduction to market makers.

*******PLEASE WATCH************

CSE: https://www.youtube.com/watch?v=Q1UnfuTOA2s#action=share

CSE LISTINGS: https://www.youtube.com/watch?v=iOW8WZovrws&t=1s

  • Straightforward requirements
  • Being a connected exchange
  • Enhanced disclosure
  • Streamlined regulation
  • Low, fixed fees
Transaction Exchange Fees
TSX CSE
Annual sustaining fee $5,200 - $90,000 $7,800
Private placement $750 - $55,000 $0
Reviewable transaction $1,000 - $55,000 $0
Stock option plan review/admin. $1,000 - $30,000 $0
Share split $1,000 - $30,000 $0

Listing on the CSE is a relatively straightforward exercise. The first step, and the largest effort, is to draft a disclosure document. In your case you will need to file a Non Offering Prospectus with one of the provincial securities commissions in Canada. That will make your company a 'reporting issuer' in Canada and qualify the company for listing on the CSE. That prospectus will then become the company's Listing Statement so there won't be any duplication of effort. Again, the process takes about 60 days from when the preliminary prospectus is filed with the commission and the exchange.

Please complete the on line form, One of our associates will contact you within the next business day.

Your Confidential First Step
To Buying a Public Company Starts Here

First Name

Last Name

Your Number

Your Email

Best Time to Reach

Budget $

Comment