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