TORONTO STOCK EXCHANGE AND TSX VENTURE EXCHANGE A GROWTH PLATFORM for U.S. Companies A sophisticated, diversified marketplace that connects companies of all sizes and sectors to the growth capital they need. A two-tiered capital formation ecosystem offering traditional and non-traditional financing and liquidity solutions. us.tsx.com Benefits of Going Public As a U.S. company, if you are looking Access To Capital And Future Financing Opportunities to access capital Going public can provide your company with financing to fuel your opportunities to grow your business via expansion of operations, hiring or acquisitions. The issuance company’s growth, of public shares can also expand and diversify your investor base by giving you access to pools of capital consider this: in Canada, the U.S. and globally. Facilitate Growth Reason As a public company, your shares can be used as a Does your company have a reason to currency substitute to acquire target companies, instead be public and take advantages of the of a direct cash offering. Using shares for an acquisition can be a tax-efficient and cost-effective vehicle to benefits of being a public company? finance such a transaction. This can also improve your ability to complete mergers and acquisitions in a more timely and cost-effective manner. Increase Visibility And Prestige Ready Going public enhances your company’s visibility. Greater Are you and the company ready public awareness gained through media coverage, to go and be public? publicly filed documents and coverage of your shares by sector investment analysts can provide your company Do you have the required team and with a higher profile and greater credibility. Ultimately, infrastructure in place? this can result in a more diversified group of investors following your company, which may increase demand for your company’s shares and potentially increase your company’s value. Provide Liquidity For Shareholders Requirements Becoming a public company establishes a market for Does your company meet the TSX or your company’s shares, providing your investors with TSXV listing requirements? an efficient and regulated vehicle in which to trade their shares. Greater liquidity in the public market can See our Guide to Listing to find out: often lead to better valuation than would be achieved as a private company. tsx.com/ebooks/en/2021-guide-to-listing Create Employee Incentive Mechanisms Your employees can participate in the ownership of your company and benefit from being shareholders. Reality Stock options and employee share purchase programs Can Canadian investment bankers are good mechanisms for compensating your get investor support for your type employees without depleting cash reserves. This can serve to ensure stronger employee commitment to and size of company in current your company’s performance and success. Share market conditions? ownership can have an immediate and tangible value to employees, and can be used as a recruitment incentive. • TSX Venture Exchange is a fully No Longer Just a Benefits of regulated junior market with listing and reporting standards Resource Exchange the Canadian that are tailored to early stage companies. Built on a strong history of financing resource companies, TSX and TSXV Markets • TSX Venture Exchange is rules- now welcome a diverse list of based versus a disclosure-based companies. Why are TSX and TSX Venture (OTC) regime, which may provide relevant to U.S. growth companies? comfort to investors. • +45% of listings (by market Companies creating their long- • The timing and costs of listing cap) are tech, cleantech, life term funding strategy should on TSX and TSXV are typically sciences, diversified industries, consider all options including significantly lower than listing communications/media (“Growth” traditional venture capital, private on a U.S. national exchange. Sectors) on TSX and TSXV. equity, crowdfunding, ICOs... • Be a larger company in a smaller • Innovation was the #1 sector and the public markets. TSX market than the U.S. which can on TSX and TSXV for IPOs and and TSXV are each platforms lead to greater analyst coverage, new listings in 2020. that may be the most viable institutional investor interest, • $48 Billion in equity capital and attractive path for and overall exposure. was raised by the Innovation your company. • TSX and TSXV provide several sector in the past 5 years. listing options that are ideal • TSX and TSXV are 4th among Canada Embraces for small cap companies, from global peers by number of IPOs Small Cap Public the traditional IPO to a reverse and new listings in 2020*. Companies merger into an existing shell or • TSX and TSXV are 3rd among a capital pool company (CPC). global peers by number of • Go public at an earlier stage • TSX Venture is an incubation international IPOs and new than in the U.S. markets and platform with the opportunity listings in 2020*. access “public venture capital”. to graduate to TSX when ready. *Source: TSX/TSXV Market Intelligence Group, World Federation of Exchanges and exchange websites. A Long-term Growth Strategy A Source of Growth Capital Our market provides a well-used The Canadian markets boast growth path from TSX Venture TSXV graduates a robust retail investor base, to Toronto Stock Exchange. 250 currently listed on TSX as well as world-class institutional investors. Companies can dual list on TSXV or TSX and a U.S. market Additionally, approximately or exchange. graduates from TSXV 40% of trading originates from 700+ to TSX since 2000 outside of Canada. Companies Benefits of Dual Listing: can access capital at varying sizes from small private • Enhanced demand and profile. placements to large IPOs. • Increased equity research analyst coverage. 2020 Total Average • Greater share liquidity. 225 55 Companies Companies TSX $36B $68M • Access to TSX listed company dual listed dual listed TSXV $6.6B $3.5M customer base. on TSX on TSXV • Awareness and credibility to (186 with (16 with H1 2021 Total Average access Canadian customers. NASDAQ/ NASDAQ/ TSX $28B $76M • Advantages for Canadian NYSE) NYSE) employees. TSXV $6.3B $5.9M Canada’s Global Capital Markets Total Market U.S. Issuers H1 2021 MARKETS AT A GLANCE TSX TSXV TSX & TSXV TSX TSXV TSX & TSXV Listed Companies 1,707 1,673 3,380 50 62 112 Market Capitalization ($ Billions) $3,988.6 $100.7 $4,089.3 $175.5 $4.8 $180.3 Median Market Capitalization ($ Millions) $176.2 $15.6 $45.6 $377.2 $26.6 $88.7 Average Market Capitalization ($ Millions) $2,336.6 $60.2 $1,209.8 $3,509.5 $76.8 $1,609.3 Total Financings ($ Millions) $28,335.5 $6,347.4 $34,682.9 $489.0 $265.9 $754.9 Average Financings ($ Millions) $75.6 $5.9 $24.0 $40.8 $5.9 $13.2 Going Public Activity* 108 118 226 5 5 10 Graduates from TSXV 19 - 19 1 - 1 *Includes Initial Public Offerings, Capital Pool Company IPOs, Reverse Takeovers, Qualifying Acquisitions and others. Excludes comedowns and grads. RECENT U.S. LISTINGS June 2021 Equity Capital Raised ON TSX & TSXV Industry Market Cap (C$) Since Listing (C$) Boardwalktech Software Corp. Technology $35M $27M Brookfield Infrastructure Corporation Industrial Products & Services $4,200M - Brookfield Renewable Corporation Clean Technology $8,969M - Charlotte's Web Holdings, Inc. Life Sciences $489M $144M DGTL Holdings Inc. Financial Services $14M $1.3M Flagship Communities Real Estate Investment Trust Real Estate $208M $241M Gatos Silver, Inc. Mining $1,286M $402M Global Crossing Airlines Group Inc. Industrial Products & Services $115M $22M HempFusion Wellness Inc. Life Sciences $44M $22M NextPoint Acquisition Corp. SPAC $210M $267M Perimeter Medical Imaging AI, Inc. Life Sciences $138M - Quisitive Technology Solutions Inc. Technology $515M $94M The Real Brokerage Inc. Technology $396M $29M Simply Better Brands Corp. Consumer Products & Services $124M - Skylight Health Group Inc. Life Sciences $182M $14M Viemed Healthcare, Inc. Life Sciences $353M - Note: New U.S. listings from 2020-2021, excluding grads. 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