CSE New Listings Roundup for June 2014

If you’re wondering where the hottest place in Canada is this summer, it very well may be the CSE.

With a new record high number of listings in June 2014, the CSE is on pace to have its best year yet in terms of listings and trading activity and there is still plenty of time left on the calendar.

As we cross the halfway mark of 2014, the CSE has already seen 35 new listings join the exchange to date with 13 new listings added in June. The previous record for listings in a month was 10 (December 2010) and the previous high number of listings within a year (37) is within reach.

New to the exchange this month are:

  1. Lornex Capital Inc. – LOM
  2. West Point Resources Inc. – BLO
  3. Helius Medical Technologies Inc. – HSM
  4. Lions Gate Metals Inc. – LGM
  5. Appia Energy Corp. – API
  6. GoviEx Uranium Inc. – GXU
  7. Chlormet Technologies Inc. – PUF
  8. Murchison Minerals Ltd – MUR
  9. Mazorro Resources Inc. – MZO
  10. Orca Touchscreen Technologies – OAA
  11. BlackIce Enterprise Risk Management – BIS
  12. Highmark Marketing Inc. – HMK
  13. Big Rock Labs Inc. – BLA

New listings weren’t the only highlight, however, as trading volumes were equally as impressive. Over 257 million shares traded in June making it the third highest (so far) in terms of trading activity.

2014-07-19-Blog-CSE_Listed_Issues_webThis past year has seen a surge in interest from public companies large and small who are looking to enhance their competitiveness by focusing on efficient use of capital. In this regard, the CSE continues to be an important option to consider, especially for entrepreneurially minded organizations.

While cost control is key, many companies also know that growth also comes with increased exposure. The OTC Market Group’s recent announcement of the CSE as a qualified foreign stock exchange means that companies can now have enhanced access to wider pools of capital across the continent.

While there may not be a ‘magic formula’ at work, the CSE believes that there are key ingredients entrepreneurial companies need for success: access to capital, operational simplicity and, most importantly, choice.   As Managing Director of Listings Development Akthem Sumrain put it “the continued success that CSE is experiencing is further proof that there is in fact a much needed alternative in the Canadian capital markets.”

Like many of the entrepreneurs on and considering the exchange, the summer will continue to be a busy one. That said, despite the heat outside, the CSE and its supporters will be looking forward to a forecast that goes into the upper 30’s and beyond.

Upcoming Event: GreenRush Conference Toronto

After a successful show in Vancouver, the GreenRush Conference is coming to Toronto this week (on June 26th). The recent spotlight on medical marijuana in Canada has revealed interest from a wide array of stakeholders including investors, existing (and possible) producers, regulatory bodies, commentators as well as from consumers and advocacy groups.

Organized by Next Gen Metals Inc (CSE:N), the upcoming conference will be a full-day session featuring over 20 speakers and more than 30 exhibitors. GreenRush Toronto, therefore, may be an ideal opportunity to learn more about the many sides of the Canadian medical marijuana conversation.

The CSE (as well as several CSE-listed companies) will be among those exhibiting and speaking at the conference. We will also be hosting a corporate presentation for individuals and firms interested in learning more about listing on the CSE.

For those interested in learning more about (or registering for) the GreenRush Conference, click here.

To see our gallery from the first GreenRush conference in Vancouver, click here. We look forward to seeing you there!

Seed Capital: Early Investment in Canadian Medical Marijuana Industry Continues to Grow

If you’re a Canadian investor, the chances are good that you’ve heard or seen a massive spike in interest in medical marijuana.

From pundits to producers and all points in between, interest in the Canadian medical marijuana space has reached frenzied levels, driven there by the new Marihuana for Medical Purposes Regulations (MMPR) announced by Health Canada.

Recent reports peg the number of companies that have applied for licenses from Health Canada to grow and distribute medical grade marijuana at almost 850 with more coming in daily. And while there may only be 13 producers that are licensed to sell or provide medical marihuana under the MMPR today, that number is almost surely expected to rise as those applications work their way through the approval process.

With regulatory, administrative and legal hurdles to the MMPR still remaining, speculators and investors are betting that the entrepreneurs behind many of these firms find a way to stand out and succeed.

SL_logoTwo such entrepreneurial medical marijuana focused companies: Supreme Pharmaceuticals (CSE:SL) and Cannabis Technologies (CSE:CAN) were recently profiled in a pair of pieces by Proactive Investors.

From the piece on Supreme Pharmaceuticals, scale appears to be their strategy of choice. With formal final approval under the MMPR still pending, Supreme Pharmaceuticals is nonetheless continuing to work towards its goals of becoming a premier high volume producer in the near term.

CAN_logoOn a slightly different note, technology appears to be the strategy employed by Cannabis Technologies. With a view towards finding innovative ways to deploy and deliver medicinal cannabis, Cannabis Technologies has its eye on adopting a pharmaceutical company-like model.

With much of the Canadian medical marijuana industry still in flux, it remains to be seen how the marketplace will react to the sheer number of names and providers focused on the space. On the Canadian Securities Exchange, there are a number of companies in addition to Supreme Pharmaceuticals and Cannabis Technologies that are active in the medical marijuana space.

One thing that does remain clear, however, is that interest from speculative capital is still providing attention and dollars to the medical marijuana story.

In Need of an Invisible Hand? Proposed Amendments to NI 23-101 Trading Rules Cause a Stir

The waters for securities intermediaries in Canada seem like they’re about to get a bit choppy.

Recently, Canadian Securities Administrators announced that some of rules that govern the transaction of securities are up for review. Specifically, amendments are being proposed to the National Instrument 23-101 (NI 23-101) Trading Rules in the areas of trading fees, data fees and most notably, the order protection rule (OPR).

Given the stakes involved, the proposed changes are almost certain to generate a spirited debate between those in favour of and those opposed to the amendments to the OPR.

One such point of view came from Jeffrey MacIntosh via the Financial Post. In his recent article, MacIntosh takes aim at the proposed NI 23-101 Trading Rules amendments and provides an insightful analysis about the potential impact they may have on the multi-marketplace model.

While there are other issues as well, OPR appears to be a linchpin, and will therefore be an important topic to continue tracking. If you have thoughts or comments on the proposed amendments to NI 23-101, we’d also love to hear them – feel free to leave a comment below.

Photo Gallery from the CSE launch party in Toronto

Thank you to everyone who joined us at the Rosewater Room in Toronto on May 13th to formally celebrate the launch of our rebranded exchange. It was a long overdue celebration and we are grateful that many of our friends in the listings and trading community came out to party with us!

Photo Gallery from the CSE Launch Party in Toronto:

Continuing the Climb: CSE Joins the List of OTC Qualified Foreign Stock Exchanges

2014 continues to be a year of great accomplishments for the Exchange for Entrepreneurs. Earlier this month, the Canadian Securities Exchange (CSE) celebrated the achievement of another key milestone by being named to the OTC Markets Group list of qualified foreign stock exchanges, and in doing so, has opened the door to even greater attention and interest from one of the most popular marketplaces in the US.

Specifically, as a result of this designation, CSE-listed companies are now eligible to apply for trading on the OTCQX and the OTCQB marketplaces. Given the scale and popularity of the OTC marketplaces, the news is certainly creating a buzz among investors and issuers in Canada and the US.

Winds of Change

The approval announcement came just a few days ahead of a visit to Canada by the president and CEO of the OTC Markets Group, Cromwell Coulson.

As part of a campaign to raise awareness about the exchange, Coulson strategically selected Vancouver as the location to talk to industry and media because of the significant concentration of venture-stage companies. Like any savvy investor, however, the timing of Coulson’s visit was just right.

With the passage of the Jumpstart Our Business Startups (JOBS) Act in the US, there have been a number of important barriers lifted for “emerging growth” companies to be able to attract early investors. With restrictions on advertising to certain investors lifted and compelling amounts for capital raising allowed under the JOBS exemptions, there may very well be a catalyst for more active deal making to occur especially for junior and venture stage companies.

A Fine Balance

Given the pace of change that is occurring, however, only companies that can keep up with these changes can truly take advantage of them. One way in which companies can move with greater agility, is in the meeting the regulatory disclosure requirements.

The streamlined continuous disclosure model, recognized by the OTC marketplaces as viable reporting structure, will give CSE listed issuers the opportunity to respond more quickly to emerging funding landscape.

As advocates for reducing complexity, the CSE believes growing companies should be able to focus on growing their businesses and ultimately be more agile in the way in which they run themselves.

The Bottom Line: Being a Qualified Foreign Stock Exchange Opens Doors

The acceptance onto the OTC Market’s list of qualified foreign stock exchanges is a great milestone in a year that has already seen so much positive news and interest in the CSE.

Given the alignment of the CSE’s streamlined approach to cost and complexity, it appears that this could provide emerging growth companies with a strategic edge they need to compete in a quickly changing landscape.

For CSE listed issuers interested in finding out more information about the OTC Marketplaces, here are a couple of resources:

OTC Markets Homepage: http://www.otcmarkets.com/home

Steven Jenkins
Associate
OTC Markets Group
212.896.4414 – office
518.641.8646 – mobile
steven@otcmarkets.com