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NEX - a unique market niche
NEX is a unique and separate board of TSX Venture Exchange. It provides a unique trading forum for listed companies that have fallen below TSX Venture's ongoing listing standards.
Going forward, companies that have low levels of business activity or have ceased to carry on active business will trade on the NEX board, while companies that are actively carrying on business and pursuing growth and shareholder value will remain with the main stock list of TSX Venture Exchange.
This differentiation provides two distinct marketplaces - each with its own risk profile, unique characteristics and specific opportunities. NEX companies will benefit from the support and visibility provided by a listing and trading environment tailored to their needs, while the profile and reputation of TSX Venture Exchange companies will be enhanced as a result of the overall improved quality of the main TSX Venture stock list.
A fresh start for TSX Venture Exchange "inactives"
Before NEX was created, companies that fell below TSX Venture's ongoing listing standards were designated "inactive" and given 18 months to meet the standards or be delisted. Now, with NEX, these companies are relieved of the pressure of a delisting deadline, are more visible as potential takeover targets or investment opportunities and can continue to trade within the prestigious TMX Group of stock exchanges.
NEX streamlines and simplifies
With short, simple, easy-to-read rules and streamlined filing obligations, NEX reduces the complexity of complying with exchange policies - giving these companies more time to focus their efforts on reactivation.
This does not mean that disclosure standards have been relaxed. NEX companies are subject to the same disclosure standards as all Canadian public companies and must maintain good standing with all relevant Canadian securities commissions. In addition, surveillance standards of NEX companies remain unchanged - they continue to be overseen by the same independent service that monitors TSX Venture Exchange and Toronto Stock Exchange companies.
- Simplified Rules: Companies falling below TSX Venture listing standards now have a place with simplified rules where they can trade while they seek additional opportunities to refinance, reactivate or reinvent themselves.
- Differentiates Companies: The clear separation of companies that meet and don't meet TSX Venture standards enables investors to more easily select companies appropriate to the risk level of their investment profiles.
- Gives Shareholders Another Chance: Existing shareholders of NEX companies have another chance of making a return on their investment (compared to delisting, which terminates investment potential).
- Smoothes Listing Transitions: NEX companies continue to maintain a relationship with TMX Group, smoothing the transition to active listed status on TSX Venture Exchange when and if the opportunity arises.
- Facilitates Connections: NEX's distinct profile facilitates connections between deal-makers exploring potential opportunities and company management examining reactivation alternatives.
- Provides a Going Public Alternative: NEX companies provide an easy-to-identify alternative entrance via a share exchange transaction for non-listed companies seeking a listing on a national exchange.
- Trades on TMX Group Technology: Trading on the NEX open auction market takes place on the same fully electronic system as TSX Venture Exchange, and is governed by identical trading rules.
- Improves the Main TSX Venture Stock List: TSX Venture Exchange, its listed companies and their investors benefit from the positive effects of an improved stock list composed of companies actively carrying on business and working to create shareholder value.
Frequently Asked Questions
How does a company become listed on NEX?
TSX Venture Exchange companies that have fallen below TSX Venture Exchange's ongoing listing standards and are otherwise in good standing are eligible to transfer to the NEX board. NEX companies are generally transferred from TSX Venture Exchange 90 days after they fail to meet TSX Venture's ongoing listing requirements due to the low levels of their business activity.
What does this mean for investors in TSX Venture inactive companies?
Before NEX was created, companies that fell below TSX Venture's ongoing listing standards were designated "inactive" and given 18 months to meet the standards or be delisted. Now, companies may trade on NEX indefinitely, so existing shareholders of NEX companies have another chance of making a return on their investment (as delisting reduces investment potential).
As an investor, what should I be aware of when investing in NEX companies?
Companies listed on NEX have the opportunity to continue as public companies while they assess their business plans and operations, and formulate a strategy to reactivate their businesses for future growth. While some NEX companies will succeed in this endeavour, others may not. Therefore, investors should consider the risk level of their investment portfolios when assessing investment in a NEX company.
How do I get more information on a NEX listed company I might be interested in?
There are a number of ways to obtain more information on NEX listed companies. You can access TMX Money, our comprehensive database of information on NEX and TSX Venture Exchange listed companies. You can speak with your financial advisor or broker, who may be able to obtain additional information on the company in which you are interested. You may also consider obtaining information by contacting the company's Investor Relations representative.
How do I obtain more information on the operation of NEX?
You can contact us at the telephone number and e-mail address listed at the bottom of this web page.
| NEX Policies, Forms and Appendices |
| Policies |
NEX Policies |
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| Policies |
NEX Policies - Blackline to August 14, 2013 |
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| Form A |
Listing Notification |
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| Form B |
Price Reservation Form |
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| Form C |
Notice Of Proposed Share Issuance/Financing |
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| Form D |
Notice Of Proposed Stock Option Grant Or Amendment |
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| Form E |
Notice Of Change Of Management |
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| Form F |
Notice Of Proposed Material Transaction |
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| Form G |
Notice Of Name Change And/Or Consolidation/Split |
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| Appendix 1 |
Acknowledgement - Personal Information |
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TSX Venture Exchange Policies, Forms and Appendices
Frequently Asked Questions
How does a company become listed on NEX?
On the launch date of the NEX board, all TSX Venture listed companies that did not meet Tier 2 Tier Maintenance Requirements ("TMR") were transferred to NEX. Going forward, any TSX Venture Exchange listed companies that fall below TSX Venture's ongoing listing standards and are otherwise in good standing will be entitled to be transferred to NEX.
Are new companies not previously listed on TSX Venture Exchange eligible to be listed on NEX?
Only companies that were formerly listed on Toronto Stock Exchange or TSX Venture Exchange and that failed to meet TSX Venture ongoing listing standards are eligible to list on NEX. This includes CPCs that have failed to complete a Qualifying Transaction in accordance with TSX Venture requirements. Companies that have not been listed on TSX or TSX Venture and companies that have been delisted from TSX and/or TSX Venture are not eligible for listing on NEX.
What are the regulatory requirements for being listed on NEX?
A company listed on NEX may continue to have its securities listed for an indefinite period of time provided that it meets NEX listing requirements. In the event that a listed company does not comply with NEX Policies, fails to comply with applicable securities laws, completes a Reverse Takeover ("RTO"), conducts transactions or activities such that it meets applicable TSX Venture listing standards, or if NEX determines that it is in its best interest, NEX may delist the company.
If a listed company undertakes an RTO as defined in TSX Venture Policies, it will be subject to compliance with TSX Venture Policies governing RTOs. Subject to the halt requirements for RTOs, it will be permitted to continue to trade on NEX until completion of the RTO, at which time it will be required to graduate to TSX Venture or simply delist.
As NEX is a board of TSX Venture Exchange, Investment Industry Regulatory Organization of Canada (IIROC) provides the same regulation services as currently provided to TSX Venture.
What are the costs of being listed on NEX, and how are they different from those of TSX Venture Exchange?
NEX charges a single quarterly listing maintenance fee of $1,250, payable on the first business day of each quarter. By contrast, TSX Venture charges an annual sustaining fee and filing fees, ranging from $5,200 to $90,000, with each reviewable filing made during the year. NEX fees are designed on a competitive basis with other evolving and emerging markets, and with consideration of TSX Venture's pricing structure.
Where do I send my NEX filings?
All NEX listed companies must send their filings through the NEX Filing Office, and not through their former TSX Venture Filing Office. Failure to send NEX filings to the proper office location will result in delays in their processing.
The NEX Filing Office address is:
#2700 - 650 West Georgia Street
P.O. Box 11633
Vancouver, BC
V6B 4N9
Phone: (604) 689-3334
Fax: (604) 844-7502
Please ensure that all filings are clearly marked "Attention: NEX".
Are NEX's trading hours any different than those of TSX Venture Exchange?
NEX's trading hours are identical to TSX Venture Exchange - from 9:30 a.m. ET to 4:00 p.m. ET on business days.
Where do I obtain a copy of the NEX Trading Rules?
NEX trading is governed by TSX Venture Exchange Trading Rules, which can be accessed by clicking here.
When is a NEX company eligible to graduate to TSX Venture Exchange?
Listed companies that develop their businesses to the point where they meet applicable TSX Venture standards will no longer be eligible for listing on NEX, and will be entitled to apply for a re-listing on TSX Venture. Depending on the nature of the reactivation (if the company is continuing in the same business with the same principals), TSX Venture may elect to permit a company to re-list based on ongoing Tier Maintenance Requirements rather than Minimum Listing Requirements.
For more information about NEX please contact:
Toll Free: (866) 344-5639
E-mail: nex@tsx.com
Questions and submissions regarding NEX should be directed to:
Andrew Creech, Team Manager, Listed Issuer Services
Phone: (604) 602-6936
E-mail: andrew.creech@tsx.com
| May 12, 2009 | TSX Venture Exchange Bulletin - Temporary Relief Measures - Available for NEX Issuers |
| September 28, 2005 | TSX Venture Exchange Bulletin - September 28, 2005 - Changes to NEX Policies and Policy 5.2 - Changes of Business and Reverse Take-Overs |
| April 13, 2005 | TSX Venture Exchange Bulletin - Amendments to the CPC Program |
| December 22, 2004 | TSX Venture Bulletin - Request for Comments - Amendments to the CPC Program
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| June 29, 2004 | TSX Venture Bulletin - Amendments to Policy 5.9 to Conform to Amendments to OSC Rule 61-501 |
| June 10, 2004 | NEX Bulletin - Amendments to NEX Fees |
| March 24, 2004 | NEX Bulletin - NEX Forms and Privacy Legislation |
| February 18, 2004 | TSX Venture Bulletin - Billing Practices |
| January 23, 2004 | TSX Venture Bulletin - Mandatory Filing Dates for Revised Personal Information Forms |
| December 31, 2003 | TSX Venture Bulletin - Revised Personal Information Form, Listing Application Form and Declaration |
| August 29, 2003 | NEX Fees for 2003 |
| August 25, 2003 | NEX Bulletin - NEX companies _ Form A filings |
| August 15, 2003 | NEX Issuers for Launch - as at August 15, 2003 |
| August 12, 2003 | NEX Bulletin - New Addition to NEX, Symbol Change |
| August 12, 2003 | NEX Bulletin - New Addition to NEX, Symbol Change, Reinstated to Trading |
| August 12, 2003 | NEX Bulletin - New Addition to NEX, Symbol Change, Remain Halted |
| August 12, 2003 | NEX Bulletin - New Addition to NEX, Symbol Change, Remain Suspended |
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