The advantages of Toronto Stock Exchange venture listings are that smaller companies with fewer net tangible assets may list there, which gives them the opportunity for increased visibility and prestige that can lead to greater value. Companies must have net tangible assets of at least CDN $7.5 million for a regular TSX listing. They must have CDN $500,000 for a Tier Two venture listing and CDN $1 million for a Tier One listing, according to TSX Private Markets.
By issuing public shares as a TSX venture listing, companies can expand their investor bases, leading to secondary equity financing opportunities. Often, these companies receive more favorable lending terms from banks and private lenders, as TSX Private Markets indicates.
A TSX venture listing facilitates company growth because of greater public awareness and enhanced credibility. This may increase demand for shares of a company's stock, which then increase in value. A public company can also use its shares to acquire other companies rather than using direct cash offerings. This method of acquisition is more tax-efficient and cost-effective for a company, as TSX Private Markets explains.
Being a publicly traded company means that investors have a well-regulated way to trade shares. It also provides the employees of a company with the opportunity to participate in its ownership through incentives, rewards and purchase programs. The company can use stock options rather than cash reserves to recruit and ensure the loyalty of its employees, according to TSX Private Markets.