NEX
Candlefocus EditorThe NEX (NEX Market) is a subsidiary of TSX Venture Exchange (TSXV) for venture companies whose circumstances have changed since they were first listed, and now no longer meet the listing requirements of the TSXV. This board provides liquidity, visibility and potential acquirers or investors to companies with low levels of business activity or that have ceased to carry on active business.
The NEX is designed to provide an alternative marketplace and a way to maintain listings for eligible venture companies. While companies must meet the minimum listing requirements for the TSXV prior to listing, companies that no longer meet the ongoing listing standards after being listed can transfer to the NEX Market.
To qualify for the NEX, companies must have a minimum of 200 shareholders, a minimum market capitalization of $50,000 and a minimum bid price of $0.001. NEX has also reduced its listing fees to help with the transition of companies from the TSX Venture Exchange. The process and requirements for NEX applications is simplified compared to the TSX Venture Exchange and companies that do not meet the TSX Venture Exchange's listing requirements will typically be moved to the NEX board after 90 days.
The NEX is the only exchange in Canada to provide a competitive alternative for companies that no longer satisfy the requirements for listing on the TSXV. This makes it an attractive option for such companies who are looking to provide liquidity and visibility to attract potential acquirers and investors. NEX also provides a vehicle from which companies can finance themselves, exit a venture stage, and raise capital more easily, while negating the need to de-list their shares.
Overall, the NEX offers companies the opportunity to remain listed when they might otherwise have been forced to delist, and in the process helps to strengthen and give credibility to the TSX Venture Exchange as a whole.