TSX Venture Exchange Launches New Sandbox Initiative to Encourage Innovation

On May 13, 2024, the TSX Venture Exchange (“TSXV”) announced the launch of its TSXV Sandbox initiative (“Sandbox”), as part of the TSX’s Venture Forward program. The Sandbox initiative allows for a more defined and transparent forum for the TSXV to consider more unique businesses, understand their businesses, and allow entry onto the TSXV. This will allow the TSXV to exercise greater discretion to modify or waive certain listing requirements allowing for more flexibility for listing requirements for businesses.

Only new listings or new listing transactions, such as qualifying transactions and reverse takeover transactions, may apply. There is no prescribed list of eligibility criteria since this approach allows the TSXV to customize or adapt criteria to applicants.

Applying for a listing under TSXV Sandbox will incur no additional fees and regular listing fees will apply. Also, a listing under the TSXV Sandbox will be considered a regular Tier-2 listing and will therefore not require a different symbol extension: though TSXV Sandbox Issuers will be required to identify themselves as such in all public disclosure.

Once the TSXV has assessed the Sandbox application, they may require additional conditions to be applied to tailor the application and facilitate the listing, including:

  • Enhanced disclosure;
  • Enhanced vesting requirements;
  • Restrictions on security-based compensation; or
  • A distinct escrow regime.

The TSXV will work closely with these businesses to customize and adapt to existing conditions: expecting that companies will be able to exit the Sandbox within 12 months of listing.

The TSXV Sandbox gives unique businesses and those that may not meet all the normal listing requirements increased access to the TSXV, allowing investors new opportunities.

For more information, please contact Keith Inman at [email protected] or by phone at 250-869-1195.

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