Want to trade CSE stocks in Germany – ING is connected!

ING DiBa
ING DiBa

One common question we receive at the Exchange is “where can investors trade CSE stocks in Germany?”

We are happy to report that ING clients  in Germany are able to trade via ING DiBa: https://www.ing-diba.de/

Want more information on how to trade CSE stocks online? Visit our retail trading centre here: http://www.sparxtrading.com/stock-exchange-profile-canadian-securities-exchange-cse/

Nathan Hansen talks Oil Recovery and Alternative Fuels on Ticker Talk

Here’s a great interview with another CSE-listed entrepreneur Nathan Hansen, President and CEO of Robix Alternative Fuels (CSE: RZX) who interviewed with Ted Ohashi on Ticker Talk.

Video credit: InvestmentPitch.com

CEO Richard Carleton talks to INN about Rebranding, Ned Goodman, and more

This past weekend at the Vancouver Resource Investment Conference CSE CEO Richard Carleton got to spend some time with Mike Rodger of Investing News Network. Their discussion was captured on video and covered a range of topics around CSE, including the exchange’s rebranding, the involvement of Ned Goodman, and some of the regulatory issues that are affecting junior markets in Canada.

Also referenced in the video is the INN Venture Status Survey Report – a project that Mike’s group embarked on to get more insights into the root causes of the current state of junior markets. We highly recommend you review the report which we have linked here: Venture Status Survey Report

Find the interview with Richard below:

The CSE Pavilion at VRIC14

Thank you to Jordan Capital Markets, Muskrat Minerals (CSE:YYR), MicroCoal Technologies (CSE:MTI), Winrock Resources (CSE:WR), and Pasinex Resources (CSE:PSE) for making the CSE Pavilion the place to be(!) at the Vancouver Resource Investment Conference! Also a big thank you to Cambridge House for hosting an amazing show!

Our day at the Cantech Investment Conference in Toronto

CSE_Cantech1CSE had the pleasure of attending and exhibiting at the 2014 Cantech Conference in Toronto on January 16th. This is the first such show from Cambridge House International who have traditionally organized mining conferences including the Vancouver and World Resource Investment Conferences.

Some highlights from our day at Cantech:

Discussions centred around how to fund, nurture tech

We had the opportunity to attend several talks including a panel titled “Do the Public Markets Still Matter to Canadian Tech?” (ed. yes they do!), a wonderful speech by Sir Terry Matthews, a rousing presentation by Difference Capital’s Mike Wekerle and Neil Johnson (Why Tech is Back), and the day’s highlight – a keynote address from former Canadian astronaut Chris Hadfield.

Many great ideas and observations were presented, including some lively debate over the viability of crowdfunding for tech companies during one of the panels. LX Ventures CEO Mike Edwards offered a lot of support for the model as a means to introduce risk capital into tech startups as there is still a funding void for series A financings in Canada. Accredited investor rules are also making it hard for risk seeking investors to get into the ground floor of tech investment opportunities and crowdfunding could help participation here according to Mr. Edwards.

On the same panel, it was acknowledged that the “sweet spot” for tech financings in Canada is settling between five to 25 million dollars with companies of a certain size still needing to list on a US exchange when they hit $100 million in revenue – a stat provide by John Ruffolo (OMERS Ventures).

Tech is back with lessons learned

There were many indications that the street has tuned onto tech after successful IPOs last year, with Halogen Softwares, Inc. being one of the examples presented as an indication of what to expect in 2014.

There was discussion around lessons learned from the late nineties tech bubble. Most VCs and bankers are looking to avoid the mistakes of the past by applying more diligence toward their capital investments. Many of the investors echoed each other when describing their “must-haves” from prospective investee companies including: credible, experienced management that are addressing real market demands with products  that have established traction (customers, sales – not interested in funding R&D). No “paper napkin” deals this time around!

Regarding companies in the R&D stage the time has never been better to leverage government programs as espoused by Sir Terry Matthews who himself uses these programs aggressively. In his own words he said that the country is undergoing the biggest tech refresh in the history of Canada.

Leading Canadian thinkers lend credibility, gravity to event

Based on attendance, quality of participants, and thoughts shared on stage (and in the exhibit hall) there was an obvious sentiment that technology plays are going to be a greater focus for Bay Street investment firms, and in some cases, like Difference Capital, it is the sole focus of their investment business.

Both sir Terry Matthews and Chris Hadfield reminded the audience to not discredit or undersell Canadian ingenuity and technical talent – one point made in the public markets panel reminded us that there are a lot of homegrown companies that need to be nurtured and supported by our institutions if we are to have greater ambitions globally!

CSE_Cantech3It was a wonderful day and CSE would like to extend its congratulations to Cambridge House and to our prize draw winner Carly Bennie (from Difference Capital)  who walked away with a Samsung Galaxy Tab 3! We are excited at the prospects of another show of this caliber in Vancouver and next year in Toronto.

CSE submits comments on CSA Notice 45-312

Originally submitted to the OSC, ASC, and BCSC on January 17th, 2014:

Re: Multilateral CSA Notice 45-312 – Proposed Prospectus Exemption for Distributions to Existing Security Holders (the “Notice”)

The Canadian Securities Exchange appreciates the opportunity to comment on these significant issues. We offer some general comments and observations in addition to our responses to the specific questions in the Notice.

Background – Canadian Securities Exchange

CNSX Markets Inc. is a recognized stock exchange in Ontario, and authorized or exempt in Quebec, British Columbia, Alberta and Manitoba.  On January 6, 2014 we began carrying on business as the Canadian Securities Exchange, or CSE.  In addition to over 200 listed securities all of the securities listed on other Canadian exchanges are also posted on the CSE for trading, making the Canadian Securities Exchange the only exchange in Canada where participants can trade all Canadian-listed securities.

General Comments

We strongly support introduction of an exemption that relies primarily on the existing continuous disclosure record of issuers and previous investment decisions of investors.  Our only concern is with a proposal that distinguishes among listing exchanges, rather than listed or unlisted issuers.  While the Ontario Securities Commission has stated general support for the proposal and will likely introduce a similar exemption in Ontario, we strongly encourage the CSA to revise the proposal to apply to issuers listed on a recognized exchange in Canada, rather than specify any particular exchange.

Responses to Specific Questions

1. If you are a TSXV issuer, will you use the proposed exemption?

Not applicable.

2. Should the proposed exemption be available to issuers listed on other Canadian markets?

The rationale for the exemption applies to issuers on any marketplace, and the investor protection considerations are addressed for any issuer listed on a recognized exchange.  The exemption should be available to all issuers listed in Canada.

3. Investors will only be able to invest $15,000 in a 12-month period unless they obtain advice from a registered investment dealer. Is $15,000 the right investment limit?

The implication of any fixed value is that all investors share similar individual risk profiles, and in that respect it may not be appropriate.  Waiving the restriction under certain circumstances, however, may address that concern.  Obtaining professional advice is an appropriate reason, and presumably the accredited investor exemption will remain available in some form to those that qualify.  If one of the reasons behind the proposed exemption is to afford all current shareholders an opportunity to avoid the dilutive effects of further financings from the company, then it is likely that the $15,000 limit is sufficient to extend the ability to participate to otherwise non-accredited investors.

4. In what circumstances would it be suitable for an investor that is a retail security holder to invest more than $15,000 in a TSXV issuer?

The proposal to permit a greater investment with advice from a registered investment dealer is sound.  It may also be appropriate to allow investment by shareholders that have already invested greater amounts over a longer period, or already hold an investment the issuer with a current value significantly greater than $15,000.

5. Do you agree that there should be no investment limit if an investor receives suitability advice from a registered investment dealer?

Yes.  An appropriate individual limit is an integral part of the advice that is included with the advice on suitability.  This should be addressed by the dealer’s existing responsibilities rather than added as an additional requirement for the purpose of this exemption.

6. Do you agree that being a current security holder of an issuer enables an investor to make a more informed investment decision in that issuer?

We do not believe that simple ownership enables an investor to make a more informed decision, as any potential investor has access to all of the same information.  A current security holder however, with or without research or advice, has already assumed the risk of ownership of that security and may have a greater incentive to conduct research or seek professional advice.

7. What is the appropriate record date for the exemption? Should it be one day before the announcement of the offering or should it be a more extended period? If you think it should be a more extended period, what would be the appropriate period of time?

Companies may make frequent use of the exemption, which could cause administrative difficulties if the period is too long.  One day, however, is likely not sufficient. Five to ten days may be a more appropriate range.

8. We are currently proposing that the exemption be subject to the same resale restrictions as most other capital raising exemptions (i.e., a four month restricted period). However, there are some similarities between the proposed exemption and the rights offering exemption, which is only subject to a seasoning period.

  1. a.    Do you agree that a four month hold period is appropriate for this exemption?

We believe the four month hold meets the objectives of allowing retail investors to get the discounted price, avoid commissions, and acquire sweeteners, but does not provide advantages over other simple exemptions like “friends and family” or accredited investors.

  1. b.    Should we require issuers to provide additional continuous disclosure, such as an annual information form?

No.  As stated in our general comments, we support an exemption that is based primarily on the existing continuous disclosure record of a listed company.  The existing record is sufficient, supplemented by requirements of the exchanges.

  1. c.     If we were to consider a seasoning period for this exemption, should we consider some of the restrictions that apply under a prospectus-exempt rights offering, such as “claw-backs” limiting insider participation?

Yes. This should be consistent with (a) – make it similar to the rights offering, or similar to a private placement.

  1. d.     If securities offered under the exemption were only subject to a seasoning period, would there be a greater need to ensure investors are made aware of and have an opportunity to participate in the offering?

No.  The proposed exemption will provide more flexibility for issuers to raise capital from an additional source, the retail investor.  In turn, it will provide a new opportunity for retail investors.  We do not believe the intention of the proposed exemption is to create an obligation by requiring issuers to offer all shareholders the opportunity to participate in any financing.

9. We have not proposed any conditions regarding the structure of the financing, i.e., minimum or maximum price, maximum dilution, or period in which an offering must be completed. We contemplate that the proposed financing would be conducted under the standard private placement rules of the TSXV which, among other things, allow pricing at a discount to market price. Is this appropriate or are there structural requirements that we should make a condition of the exemption?

The CSE, as all Canadian exchanges, defines the prices at which exempt financings may be conducted.  If the proposed exemption were to be extended to include all listed companies, the financings would still be subject to the standard private placement rules of the listing exchange.  Just as current exemptions allow the financing and the listing exchange sets the pricing parameters, so it should be with the proposed exemption.

We thank the participating CSA members for the comprehensive review of the issues and the resulting proposal.  In addition, we thank the OSC for clarifying its position on the proposal and intentions to consider comments in developing a similar proposal.

Yours truly,

“Mark Faulkner”

Vice President, Listings & Regulation

cc:       Richard W. Carleton, CEO

Rob Cook, Senior Vice President, Market Development

CSE hosting pavilion with Jordan Capital at upcoming VRIC

CSE – Canadian Securities Exchange is thrilled to be exhibiting at the upcoming Vancouver Resource Investment Conference (VRIC) in Vancouver this Sunday, January 19th through Monday, January 20th at the Vancouver Convention Centre West. The “CSE Pavilion” will be located at booth #818.

Jordan Capital – one of Western Canada’s leading independent brokerages, is the lead sponsor of our pavilion and will be co-exhibiting at the booth as well. Additionally, four CSE issuers will also call the CSE Pavilion their home during the conference including:

As described by Cambridge House (the conference organizers):

“The Vancouver Resource Investment Conference is the world’s largest investment conference dedicated on resource exploration and the largest of all annual trade shows held in Vancouver, Canada. Hear from investment thought leaders and wealth influencers. Speak one-on-one with executive members from companies covering every corner of the mineral exploration sector along with metals dealers, oil & gas, renewable energy, media and financial services companies. This is a must-see for investors and stakeholders in the global mining industry. ”

For more information about the event, including registration details and agenda please visit the event website at: http://cambridgehouse.com/event/13931

We look forward to seeing you there!

Benjamin Cox on “Why the CSE?”

This is a video that Benjamin Cox, Managing Director of Oreninc, produced last September espousing the virtues of a then-CNSX listing for junior mining companies – everything still applies under the new name of CSE.

The following views and opinions presented in this video are solely those of the author and do not necessarily represent those of CSE – Canadian Securities Exchange: