Topic: How To Invest

Q: Pat: Can I have your opinion on two TSX Venture Exchange stocks: Ceapro Inc. and Distinct Infrastructure Group? Should I be worried that they trade on that junior exchange and not the TSX?

Article Excerpt

A: The TSX Venture Exchange is designed for junior companies that don’t meet the requirements for listing on the TSX. The Venture Exchange has lower minimum listing requirements. They vary based on a company’s industry, stage of development, financial performance and operational resources. For an industrial or life sciences company, those listing requirements include: a history of operations; management, including board of directors, with adequate experience and technical expertise relevant to the company’s business and industry; and either $750,000 in net tangible assets, $500,000 in revenue or $2,000,000 in arm’s length financing. If there is no revenue, the company must have a two-year management plan demonstrating the reasonable likelihood of revenue within 24 months. To graduate to the TSX, companies must meet higher minimum requirements, including more than 300 public shareholders, and one million free-trading shares held by the public with a market value of more than $4…