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A Venture Capital Marketplace |
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The Canadian Venture Exchange
(CDNX) is Canada's public venture capital marketplace providing emerging companies with
access to capital while offering investors a well-regulated market in which to make
venture investments. CDNX listed companies are active in the mining, oil and gas,
manufacturing, technology, financial services and other sectors. CDNX provides benefits to market participants and others interested
in seeing Canada's new economy grow. Investors can seek opportunity from a wider range of
investments; analysts and other venture market watchers can track the S&P/CDNX
Composite Index, the new benchmark for small cap stocks in Canada; listed companies have
more efficient access to a larger marketplace; member firms provide service through a
single national market for the distribution of new stock issues; and, the Canadian economy
has extra-high-grade fuel for the small- and medium-size businesses that are driving
economic expansion. |
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The
Organization - Canada-wide Services |
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With offices
in Toronto, Calgary, Vancouver, Winnipeg and Montreal, CDNX offers services across the
country. Each office is designed to provide corporate finance and business development
expertise. CDNX is headquartered in Calgary, Alberta, and is part of the TSE group of companies, which includes the Toronto Stock Exchange
(TSE), TSE CDNX Markets Inc. and Market Regulation Services Inc. |
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CDNX and the Financial Community |
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The Canadian Venture
Exchange acts as a business link between CDNX members, listed companies and investors.
CDNX policies and procedures are designed to accommodate quality companies still in their
formative stages and recognize those that are more established. Listings are predominately
small- and medium-sized companies. Investors in Canada are
protected by the Canadian Investor Protection Fund (CIPF). The CIPF is a private trust
fund established to protect customers in the event of the insolvency of a member of any of
following Self-Regulatory Organizations: the Canadian Venture Exchange, Montreal Exchange,
Toronto Stock Exchange, and the Investment Dealers Association of Canada. |
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Listing Requirements Overview |
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There are three ways to
list on CDNX: initial public offering (IPO), reverse takeover (RTO) and for proven
entrepreneurs with a public market track record a capital pool company (CPC).
Companies listed on CDNX are classified in three distinct tiers. Tiers 1 and 2 each have
initial listing requirements based on a companys financial performance, stage of
development and financial resources at the time of listing. (Tier 3 is reserved for those
companies who were previously quoted on the Canadian Dealing Network.) Industry
segments within each tier each also have specific minimum listing requirements. Companies
must also have directors, officers and a corporate governance structure in compliance with
Exchange requirements; be sponsored by a CDNX member firm; and submit all necessary
agreements and documentation. Companies thinking of going
public should consult CDNX Business
Development staff to determine whether a public listing is in the companys best
interest and whether it is sufficiently developed to meet minimum listing requirements.
Full listing information is available on the CDNX website. Look for
the Guide to Listing and the
complete CDNX policies & procedures manual under Listing on CDNX. |
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Market Information |
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Building a market for
emerging companies is a primary goal of the Canadian Venture Exchange. One of the most
important ways to achieve this goal is by ensuring the provision of timely and accurate
information that will be of interest to investors and analysts alike. To facilitate
increased understanding about our companies and their successes, CDNX provides one of the
industrys most dynamic websites and a listed company information source
InfoCDNX unparalleled in Canada. InfoCDNX is a dynamic
database of listed company information, providing one-stop shopping for analysts, brokers,
listed companies and investors. InfoCDNX provides market information to visitors anytime,
anywhere, with thorough information on each of the Exchanges over 2,600 companies.
Public filings, company events, technical reports, news releases, insider trading reports,
trading status and person and business summaries are all available and cross-referenced in
multiple levels of detail. Market watchers can follow all updates on their personalized
list of companies by creating an account on the CDNX and then proceeding to the Company Tracker setup page within InfoCDNX.
The CDNX website offers a comprehensive array of services including
exchange policies and procedures, marketing and corporate news, market highlights, new
listings, and 15-minute delayed quotations. The Exchange also provides real time quotation
information through a variety of recognized disseminators in Canada, reaching
approximately 33,000 terminals worldwide. Customized reports for the public, the legal
community, member firms and other industry participants are also available to supplement
stock quotations printed in the daily newspapers. |
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Growing technology and industrial business
on CDNX |
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The Canadian Venture Exchange takes
a special interest in the technology and industrial sectors. As a niche market for
early-stage companies, the Exchange seeks to build on the strength of the many technology
and industrial companies already graduated from the venture marketplace to senior markets
such as the Toronto Stock Exchange. A review
of technology and industrial companies previously listed on a venture exchange shows the
benefits of participating in the growth of early-stage enterprises. For example, 45
companies graduated from CDNX in the year 2000. Total market cap at graduation was $8.37B
and the market cap growth for one year prior to graduation was 302%.
This proven financing record includes the introduction,
mentoring and graduation of such technology successes such as eSoft, Genetronics, Forbes
Medi-Tech, Burntsand and Cell-Loc. |
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Securities Regulation and Compliance |
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Post-trade monitoring of
market activity occurs in the Market Surveillance Department. Sophisticated software
analyses trade data to detect possible market improprieties. A variety of surveillance and
investigative tools allow CDNX to perform world-class electronic market monitoring and
trade reviews. In addition to monitoring trade activity, the
Surveillance Department is responsible for monitoring and reviewing listed company
activities and detecting breaches of the listing policies or the listing agreement. Market
surveillance and listed company surveillance activities are closely coordinated.
Enforcement action taken by surveillance may include:
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forcing companies to correct misleading or
inaccurate disclosure, including news releases and internet postings; |
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requiring the resignation of unacceptable
directors and officers; |
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requiring cancellation and return of shares to
treasury; |
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requiring undertakings from directors and
officers that they will ensure compliance with the listing agreement and listings policies
in the future; |
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requiring the termination of unacceptable
investor relations services; |
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halting and suspending trading in the shares
of companies; and |
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delisting companies that have contravened
exchange by-laws, rules, or policies. |
The market surveillance department issues CDNX
Bulletins to inform the public of halts, suspensions, delists and other enforcement
actions. All CDNX Bulletins can be found on this website or InfoCDNX. In the public interest, trading
halts or suspensions are maintained until the Surveillance Department is satisfied that
there is adequate disclosure of the company's affairs and a level playing field for
investors.
In addition to surveillance, the Market Regulation Department is
comprised of an investigative services team that conducts investigations into alleged
violations of securities trading. The CDNX Conduct Review Committee determines whether a
case for discipline exists. Disciplinary cases either result in a settlement reached
between CDNX and the respondent or they proceed to a disciplinary hearing. The public can
attend disciplinary hearings, view the exhibits filed and obtain copies of the decisions
issued by the panel. If the hearing panels decision is not acceptable to either CDNX
or the respondent, an appeal process may be initiated. |
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Last
updated: January 23, 2002 |
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