Toronto Stock Exchange Proposes Listing of SPACs

According to an article by Leslie McCallum, the Toronto Stock Exchange (TSX) is proposing to permit the listing of special purpose acquisition corporations.

Overview of SPACs Under Proposed TSX Rules:

• A SPAC must raise IPO proceeds of at least $30 million, with a minimum price per security of $5
• Within three years of the IPO, the SPAC must acquire one or more operating businesses with a combined minimum value of approximately 80% of the IPO proceeds, with the resulting issuer meeting TSX's original listing criteria
• Founding securityholders' equity interest in the SPAC must be at least 10%
• The acquisition must be approved by securityholders, excluding founders
• Securities issued in the IPO must have a conversion right and liquidation distribution feature

Link to article