Advanced Company (TSX Venture) Details

TSX stands for the Toronto Stock Exchange. TSX Venture, which has its headquarters in Calgary, is part of the TSX group. Since 1999, TSX Venture, which lists over 2,000 businesses, has focused on raising capital for emerging companies in diverse economic sectors such as resource extraction, life sciences, and new technology. The focus on emerging companies in relatively new markets means that the TSX Venture Exchange emphasizes managerial experience and expertise over what a company produces or provides. The TSX Venture Exchange classifies the companies that it lists as Tier One (Advanced) or Tier Two.

Tier One, or Advanced, companies must have at least 1 million publicly traded shares, with at least 250 public shareholders. Tier Two companies must have a minimum of 500,000 publicly traded shares and 200 public shareholders. In addition, Tier One companies must hold significant financial assets and employ directors with a proven track record. There are other requirements covering tangible assets and working capital. These requirements differ according to the tier of the listed company and the sector in which it operates.

Most of the listed companies on the TSX Venture Exchange are relatively new companies. These companies seek capital to fund operations in new areas or in developing new technologies for use in existing fields such as resource extraction and mining. Tier Two companies are generally smaller than those in Tier One and may not have experienced management teams. They represent more of a risk to investors but may also represent an opportunity if, for example, they are developing new technologies. However, Tier Two companies can graduate to Advanced Tier One status if they grow to meet the more stringent requirements that Advanced classification demands.

Real World Example of Advanced Company (TSX) Venture

Rocky Mountain Liquor Inc. does not operate in a new technology sector but is in many other ways. Its size and limited geographical range are typical of a company that appears on the TSX Venture Exchange. The TSX Venture Exchange lists Rocky Mountain Liquor as RUM on its index. In June 2010, RUM graduated from a Tier Two listing to Tier One (Advanced). The reclassification came about because RUM had demonstrated a positive cash flow and met minimum operating revenue requirements. Tier One status represents a vote of confidence in a business that will help it find new sources of investment.

Based in Edmonton, Alberta, Rocky Mountain Liquor operates through a company that it wholly owns called Andersons Liquor Inc. The company owns and operates liquor stores throughout Alberta. There are currently 29 stores in the chain selling a full range of alcoholic beverages and ancillary items such as mixers and giftware. On its website (, the company emphasizes its focus on four factors that are of fundamental importance to a retail business: pricing, location, convenience, and customer satisfaction. Rocky Mountain Liquor is successful, but it is not a large company and may have escaped investor's notice if it were not listed on the TSX Venture Exchange.

RUM's Consolidated Financial Statement for 2020 shows assets of $26,787,660 against liabilities of $19,780,727 and sales for the year of $48,428,493.