Choosing The Frankfurt Stock Exchange for Your Canadian Mining Assets To Go Public

Choosing The Frankfurt Stock Exchange for Your Canadian Mining Assets To Go Public

Saturday, August 14, 2010 @ 07:08 PM
posted by admin

Choosing The Frankfurt Stock Exchange for Your Canadian Mining Assets To Go Public

August 14th 2010 Frankfurt, Germany

The Frankfurt Stock Exchange has been the home of many dual listed Canadian TSX and TSXV companies over the last 10 years, however, in 2006 the beginning of new rules for not dual listing companies from the OTCBB and or lesser boards has caused many companies, especially Canadian companies, to slow down their listings in Germany. However, those companies who did list on the Frankfurt Stock Exchange from Canada did so for the high-volume appetite of the German and European retail market of investors for Canadian Mining Companies, especially Gold, Silver, Coal, Platinum, Uranium,  and or Oil and Gas companies from Canada who went public in Germany.

The reality is that many markets have suffered from the inability of getting their local exchange liquidity and not being able to list their firms on the Frankfurt Stock Exchange as a dual listing, but what many companies are happily discovering is that listing a company directly as a primary listing is just as easy and only takes 4-6 weeks.

FSE Listings Inc can actually show client incorporation documents and the day they were accepted to the market, all of which fall into the 4-6 week range of incorporation. There is no market in the world with the same liquidity as the Frankfurt Stock Exchange that can list a Canadian mining company or asset as a public vehicle. A trading OTCBB has become a thing of the past with unwritten laws soon to be written allowing FINRA to veto any company without reason, DTC has become an almost impossible time consuming group in the USA due to their inability to agree with the SEC registered documents and rules related to the definition of a shell, where companies are just not getting symbols or the ability to trade.

In Frankfurt, a company is registered for electronic trading, a transfer agent is put into place, a designated sponsor (market maker) submits the listing, and the company is up and running with the ability to trade in weeks.

If you are interested in listing a company on the Frankfurt Stock Exchange, consider the following services and required documents:

Firstly Prepare the documentation for your team of FSE Listings Consortium Consultants:

List of Required Documents and Information

  • Certificate of Incorporation
  • Memorandum
  • Articles of Association
  • Number of shares outstanding (as per incorporation documents) and par-value per share (also as per incorporation documents)
  • Certified Copies of ID’s of the directors and supporting documents (please look at appendix A)
  • Business Plan
  • Financials (Opening Balance Sheet etc)
  • Letter from Auditor with regards to paid in capital or a Solicitor who is holding the funds
  • Letter from the CEO Certifying the paid in capital and number of shareholders within the company
  • ISIN documentation completed and applied for by FSE Listings Inc

Second Step Documents

  • Frankfurt Application Document Signed with above documents.
  • Engagement Letter with the Registrar for Electronic Trading within your jurisdiction, For example CREST
  1. Upon receipt of registration details create the register of members of ordinary shareholders.
  2. Produce and issue the initial ordinary share certificates of entitlement.
  3. Liaise with Euroclear UK & Ireland Limited (“EUI”) to ensure all procedures and documentation is in place to enable CREST eligibility of the issued ordinary shares.
  4. Issue for signing and return by your firm both the CREST Security Application Form and CREST Enablement Letter.
  5. Submit to EUI both the signed CREST Security Application Form and CREST Enablement Letter.

Secondly, ensure you have a consultant from FSE Listings Inc who can perform the following tasks with the documentation supplied:

Consulting Services:

  • Initial due diligence
  • Prepare and coordinate drafting of a Company securities prospectus/expose for admission to the Frankfurt Stock Exchange for IPO
  • Liaising with company management for all due diligence documentation required in respect of the IPO listing
  • Preparation of all other documents required for admission to trading and commencement of trading on the Frankfurt Stock Exchange
  • Appoint and work with Share Registrar of Company to have shares registered
  • Activate electronic share registration system with Share Registrar and share clearing system in Germany
  • Joint presentation of the application for the listing of new shares for IPO by Company
  • Liaison with Frankfurt Stock Exchange
  • Drafting and coordinating publication of any mandatory announcements
  • Application for the start of trading on the Frankfurt Stock Exchange for the Company’s IPO.
  • Assist in transfer of shares via CREST/CLEARSTREAM into the electronic trading system.

Services include the cost of the Sponsor, Listing, Filings, Incorporation, and documentation preparation.

Contact today if you are interested in listing on the Frankfurt Stock Exchange!

To List Your Canadian Firm on the Frankfurt Stock Exchange Contact:

  • (02) 8006 9127 Australia
  • (914) 613-3889 United States
  • 8175 3591 Hong Kong S.A.R., China
  • 020 8123 5719 United Kingdom
  • 27110836116 South Africa
  • (22) 575 20 28 Switzerland