OSC recognizes CNQ as stock exchange (May 10, 2004)

The Ontario Securities Commission (OSC) has recognized the Canadian Trading and Quotation System (CNQ) as an official stock exchange.

As a result of CNQ’s new status, companies in any Canadian jurisdiction can apply and be listed on CNQ without first applying to the OSC to become an Ontario reporting issuer.

CNQ pursued the change because it would makes transactions easier for companies and investment dealers.

“This is recognition of the success of our market model as much as it is a regulatory milestone,” says CNQ President and CEO Robert Cook. “It confirms what participants in CNQ already know — that it’s a viable market for trading equity securities of active Canadian companies.”

Originally, the OSC recognized CNQ as a quotation and trade reporting system, not a stock exchange. As a result, companies had to apply to the OSC before listing on CNQ.

Companies listing on CNQ are required to have at least 500,000 shares split among at least 150 public shareholders (company members and employees can not be counted among the total). The minimum market cap is set at $50,000.

So far, four mining companies are listed on CNQ: United Reef, Crystal Graphite, Providence Diamond and Sahelian Gold Fields.