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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: bill who wrote (9221)	11/6/1998 9:00:00 PM
From: Jim P	Respond to of 26850

Do we qualify for a TSE listing under the new rules. Jim nationalpost.com. TSE toughens new listing standards Maintenance Plan, Too: Guidelines set minimum levels for fundamentals Garry Marr Financial Post Responding to calls for better standards following some high-profile stock disasters, the Toronto Stock Exchange has tightened its rules for new company listings for the first time in seven years. Effective immediately, newly listed TSE industrial and oil and gas companies will join mining firms under tougher, new guidelines which set minimum standards for everything from net tangible assets to pre-tax earnings. Firms involved in research and development also will have to meet more stringent listing requirements The standards do not affect companies already listed on the TSE, but next year the exchange would introduce new maintenance standards for them, too, said John Carson, senior vice-president of market regulation. The requirements for companies already listed on the TSE would be less stringent than the standards for newly listed firms in order to accommodate economic cycles, Mr Carson said. He said it was inevitable that some TSE listed firms would inevitably fall below the new listing standards. "We will be looking at revising maintenance standards and the changes will reflect some of the moves we have made on new listings," he said. Under the new rules, oil and gas companies would need to show they have adequate capital resources to cover their business plan for a period of 18 months. They also would be required to have proven developed reserves with a net present value of $3 million, up from $2 million previously. Profitable industrial companies must have net tangible assets of at least $2 million, up from $1 million. Industrial firms forecasting profitability must have net tangible assets of $7.5 million, up from $5 million. They also must have pre-tax earnings of $200,000, up from $100,000. Research and development firms would be required to have to at least $12 million in cash, adequate funds to cover expenses and capital expenditure for at least two years and a two-year operating history before being accepted for listing. Individual companies will be assessed for listing on by the TSE on a case-by-case basis. Mr. Carson said the moves were made to strengthen the TSE's position as the premier stock market in Canada. He said junior companies would still be able to find other markets. "Companies that do not meet our requirements can grow on other exchanges," he said. "When they reach the appropriate stage, they'll be here." Manford Mallory, an analyst with Research Capital Corp., said he believes the changes were made to shore up the exchange's reputation. "It's pretty obvious, given the number of surprises among emerging companies," he said. "This is the old close the barn door behind the horse story. Hopefully, it will give the TSE a sounder base and more investor confidence for the future."