TSX Venture Exchange Announces Changes to Capital Pool Company Program

Key changes to the Exchange's most popular go-public vehicle aimed at deal makers

December 1, 2020 (TORONTO) - TSX Venture Exchange (TSXV) today announced changes to its Capital Pool Company (CPC) program, following extensive consultation with stakeholders across the TSXV community. The CPC program is a unique listing vehicle exclusively offered by TSXV and accounted for almost 50% of new TSXV listings in the past 10 years.

New changes to the policy will take effect on January 1, 2021 and will provide:

• Increased flexibility - new jurisdictions added, residency restrictions eased, spending restrictions simplified
• Reduced regulatory burden - relaxed requirements on shareholder distribution and shareholder approval, fewer restrictions on PRO subscriptions
• Improved economics - increased seed investment, finders fees, shorter escrow

"The CPC program is a unique, innovative go-public vehicle tailored to serve the needs of growth companies in all sectors and is the leading source of new listings on TSX Venture Exchange. We are proud of the program's long track record of success in expanding opportunities for companies to access public growth capital," said Loui Anastasopoulos, President, Capital Formation, TMX Group. "As the Canadian financial landscape continues to evolve, we recognize the importance of working together with our clients and stakeholders to ensure the services and solutions we provide to enable success remain relevant. We thank our partners across the community for working with us to identify significant ways we can enhance the CPC program and make these important policy changes."

Representatives from both the provincial and national advisory committees will join TMX executives to open the market this morning at 9:30 a.m. EST.

The CPC program provides an alternative, two-step introduction to the capital markets by introducing investors with financial market experience to entrepreneurs whose growth and development-stage companies require capital and public company management expertise.

Since its inception in 1986, there have been over 2,600 CPCs created and more than 2,200 qualifying transactions (QTs) completed. Former CPCs have raised over $75 billion in equity capital on TSX and TSXV. TSXV will be hosting virtual events on December 8 and 9, 2020 to review the key policy changes. For more information, please visit tsx.com/cpc.

For Market Openings: Media may pick up a feed from the TOC (television operations centre) for all market open ceremonies. The feed is named TSX Transmit 1 (SD-SDI) and is produced at the TMX Broadcast Centre and sent live to the TOC. To pick up the feed via the Dejero network, please contact avservices@tmx.com. The client feature video will begin playing on the TMX media wall at approximately 9:27 a.m. ET and the markets will open with the sound of a siren at 9:30 a.m. ET.

About TMX Group (TSX:X)

TMX Group operates global markets, and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. TMX Group's key operations include Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montréal, Calgary, Vancouver and New York), as well as in key international markets including London and Singapore. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.

For more information please contact:

Catherine Kee
Senior Manager, Corporate Communications & Media Relations
TMX Group
416-814-8834
catherine.kee@tmx.com