Jun 23 '15 | A Listing Platform that Champions Public Success

A Listing Platform that Champions Public Success

Aequitas NEO Exchange launches its listing platform for capital raising companies and investment products

TORONTO – June 23, 2015 – Aequitas NEO Exchange Inc. (NEO Exchange) today celebrates another important milestone as Canada’s newest national stock exchange with the launch of its listings platform for capital raising companies and investment products. As of today, the NEO Exchange is ready to accept applications from companies and issuers of investment products interested in listing on an exchange that puts their needs, and the needs of their investors, first. 

“We have spent considerable time listening to the capital-raising community and investors in Canada and abroad, to build a listing platform that is aligned with every company’s goal of maximizing shareholder value” stated Jos Schmitt, President and CEO, Aequitas NEO Exchange.  “We heard loud and clear the burdens and frustrations faced by current public companies in Canada and we are now ready with our competitive solution. By putting their interests first, our goal is to foster successful public companies. We will do so by ensuring they are truly ready to be public, by giving them access to investors, by enhancing their liquidity and by leveraging a streamlined application process. All with quality service at a fair price.”

With listing standards designed to ensure readiness before going public, the NEO Exchange will offer a superior experience for listed companies and their investors. An innovative and cooperative market-making program will focus on providing NEO-listed companies and their investors with real and reliable liquidity. Real time market data from NEO-listed issuers will be made available to all users for free, so that NEO-listed companies will benefit from unequalled exposure to investors worldwide. This data will be available from all major market data distributers and order management systems.  Finally, an efficient and transparent listing process, with a fee structure based on the actual costs incurred by the NEO Exchange, will reduce the overall cost of going public and maintaining a listing.

A focused approach for every type of issuer

The NEO Exchange will welcome all companies and investment product issuers that are ready for public listing, including those interested in migrating from other exchanges in Canada. The listing standards and fee structure have been tailored to the unique needs of different types of issuers. 

The fee structure is simple, based on the type of security and reflecting the real costs incurred by the NEO Exchange. A comprehensive explanation of all NEO Exchange listings fees can be found here.

In comparison with the TSX, the table below summarizes the savings listing on NEO Exchange can bring:

Issuer Class Initial Listing Fee Annual Sustaining Fee
Corporates Up to 67% lower than TSX Up to 55% lower than TSX
Exchange-Traded Funds 33% lower than TSX Up to 66% lower than TSX
Closed-End Funds and Split Share Corporations Up to 90% lower than TSX Up to 85% lower than TSX
Exchange-Traded Products / other Structured Products Up to 99% lower than TSX Up to 99% lower than TSX1

1 NEO Exchange Annual Sustaining Flat Fee per Issuer, compared to TSX fees assuming multiple ETPs issued.

Public companies and investment product issuers who wish to migrate to the NEO Exchange will see their initial listings fees waived.  The NEO Exchange will also waive annual sustaining fees in the same calendar year of the migration to eliminate duplicate costs and allow companies and investment product issuers to immediately realize the full value of listing on the NEO Exchange.  Fee waivers are subject to regulatory approval.

Committed to bringing change to the Canadian listings space 

The NEO Exchange is passionately committed to bringing much needed service and value-driven competition to Canada’s listings space.  Tim Johnston, the NEO Exchange’s new Chief Listings Officer, will lead the public listings business and drive this value-added competitive solution.  With deep institutional and industry relationships from over 20 years of capital markets and investment banking experience, Tim will complement the existing team and ensure that the NEO Exchange identifies and promotes value in partnership with its listed issuers.  

“The NEO Exchange has quickly made significant strides in challenging the status quo in the Canadian capital markets,” said Tim Johnston, Chief Listings Officer, Aequitas NEO Exchange.“I have witnessed a growing concern in the capital-raising community of the limited options to foster the growth of their business and ensure long-term success. I am excited to join Canada’s newest stock exchange and to play a dynamic role in championing Canada’s success raising capital on the public markets.”

“Tim Johnston joins us at a pivotal time as we launch our listings platform,” added Mr. Schmitt. “Tim’s professional experience and well-established business network make him an excellent addition to our executive team as we focus on ensuring the success of Canada’s public companies.

Most recently, Tim Johnston was Managing Director and Head of Canadian Equity Capital Markets at Bank of America Merrill Lynch. Prior to that, he spent over 20 years at RBC Capital Markets in both Equity Capital Markets and Investment Banking.

About Aequitas NEO Exchange Inc.

Aequitas NEO Exchange Inc. is a new Canadian stock exchange using a bold new blueprint that puts investors, companies raising capital and their dealers first. Launched in March 2015, NEO Exchange currently offers an innovative trading platform and a value added listing platform for companies and investment products. NEO Exchange is a wholly owned subsidiary of Aequitas Innovations Inc., a company founded by a diverse group of prominent investors representing all Canadian capital market stakeholders.