Going Public in Canada
Are you thinking of Going Public in Canada? Looking for Investment for your Products, Services, or Business Plan? Are you contemplating Venture Capital? Or perhaps you need 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 is facilitated by becoming a public company on the CSE stock market.
Being a Publicly Traded Company gives you 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, Aequitas NEO, the TSX Venture, and CSE:Canadian Securities Exchange.
We invite you to consider the advantages of CSE as a destination to take your company public.
How do I take my 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.
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 by qualifying a Prospectus with or without a Distribution, completing a merger or amalgamation with a reporting issuer or by filing a securities exchange take-over bid. Each company on CSE is a reporting issuer in Ontario and in some cases also a reporting issuer in another province.
If you are interested in going public and you meet CSE requirements or will meet them following a public offering, contact a listings representative and they will assist in completing the CSE listing application form. CSE's listing application and the required due diligence can be done concurrently with the process of become a reporting issuer.
If you are not a reporting issuer there are many methods to become one including a merger or an amalgamation with a reporting issuer, qualifying a Non-Offering or Offering Prospectus or completing a Reverse Take Over (RTO). We will look at the two most common methods used by companies looking to go public:
- Prospectus – Companies can become reporting issuers through 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 - This type of prospectus encompasses the same disclosure requirements as an Offering Prospectus but without the company offering to sell its shares to the public. The purpose of a Non-Offering Prospectus is primarily to become a reporting issuer.
- Reverse Take Over (RTO) – This method pertains to a company purchasing a controlling interest, or the controlling shares, of a reporting issuer. The reporting issuer may be public or non-public. Many of these companies have stopped operating and have no assets but still maintain their reporting issuer status. These companies are commonly called ‘shells’.
ITB Solutions Incorporated
Peter Traynor, Principal
Looking at going public in Canada? Find out where you currently stand in the process of going public through our Going Public Interactive Questionnaire: