Neo Exchange -Neo

The Neo Exchange (“Neo”) is the newest stock exchange in Canada.  Neo was launched in 2015 and was recognized as a stock exchange by the Canadian Securities Administrators (“CSA”).  Furthermore, it is deemed to be a senior stock exchange otherwise known as a non-venture issuer exchange.  In addition, the exchange prides itself as having stringent listing policies and a trading platform that discourages predatory practices of High Frequency Traders (HFTs).

The exchange’s trading platform has three trading venues:

Neo – L: This venue gives Neo trader’s orders priority over HFTs.
Neo – N: Priority given to larger long-term investors over smaller orders based on a size/time matching priority. There is also a speed bump of 3-9 milliseconds which delays order from HFTs that would take liquidity out of the market.
Neo-D: As a dark marketplace it offers numerous options for traders while again giving Neo trader’s orders priority over HFTs.

Neo Exchange

Neo Exchange Listings

Currently the exchange has 15 corporate listings with 53 ETFs and 3 closed-end funds.

The corporate listings include 6 Special Purpose Acquisition Corporation (“SPAC”) listings.  As well, the other corporate listings are in the cannabis, psychedelic, real estate, crypto, healthcare and investment sectors.

Neo Exchange Listing Standards

EQUITY STANDARD
Shareholders’ Equity
$5 million
Market Value of Public Float
$10 million
Net Income from Continuing Ops
Market Value of Listed Securities
Operating History
2 years
Assets and Revenue
Minimum Price
$2 per share
Publicly Held Shares
1 million
Public Shareholders
300
Analyst / Investor Relations Requirement
Yes
NET INCOME STANDARD
Shareholders’ Equity
$2.5 million
Market Value of Public Float
$5 million
Net Income from Continuing Ops
$750,000
Market Value of Listed Securities
Operating History
Assets and Revenue
Minimum Price
$2 per share
Publicly Held Shares
1 million
Public Shareholders
300
Analyst / Investor Relations Requirement
Yes
MARKET VALUE STANDARD
Shareholders’ Equity
$2.5 million
Market Value of Public Float
$10 million
Net Income from Continuing Ops
Market Value of Listed Securities
$50 million
Operating History
Assets and Revenue
Minimum Price
$2 per share
Publicly Held Shares
1 million
Public Shareholders
300
Analyst / Investor Relations Requirement
Yes
ASSETS & REVENUE
Shareholders’ Equity
Market Value of Public Float
$5 million
Net Income from Continuing Ops
Market Value of Listed Securities
Operating History
Assets and Revenue
$50 million each
Minimum Price
$2 per share
Publicly Held Shares
1 million
Public Shareholders
300
Analyst / Investor Relations Requirement
Yes

The exchange also has listing policies for SPACs.

Neo Exchange Listing & Annual Fees

Listing Fees

Listing Type
IPO, Direct, SPAC
RTO
Minimum ($)
50,000
75,000
Maximum ($)
150,000
175,000
Fee Calculation
0.1% of listing capitalization
0.1% of listing capitalization plus $25,000 RTO fee.

Annual Fees

Minimum ($)
15,000
Maximum ($)
75,000
Fee Calculation
0.1% of market capitalization

Conclusion

In summary the Neo Exchange is a senior stock exchange in Canada that is an alternative to the Toronto Stock Exchange – TSX.  If you’d like to learn more about this exchange or one other the other three stock exchanges such as the Toronto Stock Exchange-TSX, TSX Venture Exchange-TSXV, or the Canadian Securities Exchange – CSE please fill out the form to the right.  Accordingly, a member of our team will get in touch with you shortly.