by Nancy Gardiner
Northern News Services

NNSL (Oct 01/97) - Two securities professionals from Calgary were in Yellowknife last week to discuss how to become publicly-traded companies listed on the Alberta Stock Exchange.

Companies in the NWT are free to list with the exchange provided they meet the criteria, which includes $100,000 in equity from the people starting the company, says Michael Mansfield, a chartered accountant with McDermid St. Lawrence Securities Ltd. of Calgary.

In order to list, another $200,000 is required in seed stock, then a minimum of $200,000 to a maximum of $300,000 raised through the sale of public shares, says Mansfield.

Minimum listing requirements vary depending upon category and type of business property the corporation is acquiring.

The costs of going public are generally between $80,000 to $120,000, depending upon the need for a feasibility study, additional accounting or legal costs and the amount of capital being raised.

A big consideration for being accepted onto listing with the exchange is management credibility, says Mansfield. He specializes in these types of listings.

"Bet on the jockey, not the horse," adds John Mackay, of the legal firm McCarthy Tetrault.

The pair say it's important to look at a company's financial statements and see how much is invested "on the hole in the ground -- and not large management fees."

"It should all be invested in the ground," says Mansfield.

Why visit Yellowknife?

"It's a very capital intensive area -- a mining area," says Mackay.

There are 874 companies listed on the Alberta Stock Exchange. About 75 to 100 of them are junior. It normally takes about 18 months for a junior to make the shift over to full listing status.

Of companies listed on the Alberta Stock Exchange, 29 per cent are industrial, 25 per cent oil and gas, 17 per cent mining, 13 per cent junior capital pools, eight per cent TSE interlist and eight per cent reactivation.

The pair spoke at a Yellowknife Chamber of Commerce Luncheon on Friday.