CSE is proud to present its most recent quarterly update video and press release below highlighting the record third quarter of the year at the Canadian Securities Exchange:
Multiple Industry Sectors Push CSE Trading Volume, Financings to New Records in Third Quarter of 2016
CSE Posts Record Activity in Q3 of 2016
The Canadian Securities Exchange (CSE) today released performance metrics for the third quarter of 2016 highlighting continued strong growth, particularly in trading volume and capital raised by CSE listed companies. Both measures rose to the highest levels ever recorded by the exchange.
Trading volume in CSE listed securities climbed 138% compared to the third quarter of 2015 to 1.27 billion shares;
Companies listed on the CSE conducted 85 financings for gross proceeds totaling $109 million, an increase of 222% over the same period a year earlier;
The CSE finished the July-September quarter with 315 listed securities, 13 more than at September-end 2015;
Trading on the CSE platform in securities listed on other exchanges totaled 811 million shares, higher year on year by 59%.
Metrics for January through September also set records, with the 3.27 billion shares traded in CSE listed securities outpacing the total for all of 2015 (2.48 billion shares). CSE listed companies raised $226 million in the first nine months of the year, compared to $195 million in full-year 2015.
Trading volume continues to gain momentum in the fourth quarter, with a record 99,704,073 shares trading in CSE listed securities on October 6. Over the past 30 days the CSE has set new records for both daily trading volume and number of trades on seven occasions.
Several CSE issuers ranked among the most actively traded public companies in all of Canada during the quarter as investor interest increased across most industry sectors, and particularly for life sciences companies. The CSE also welcomed one of the few Initial Public Offerings completed in Canada this year when Glance Technologies Inc. (GET) made its trading debut on September 7.
The CSE team remained hard at work connecting with entrepreneurs, hosting events in Vancouver, Calgary, Montreal and Toronto during the quarter, as well as presenting and exhibiting at the first ever Mines and Money conference held in North America. Senior exchange staff also travelled to China and Mongolia to continue outreach efforts in growing overseas markets.
The exchange is pleased to report that it will soon implement a new trading system technology featuring execution services for all equities listed in Canada. Related to this, a commitment to heightening the visibility of companies listed on the CSE through continued investor events and publications (including the CSE Quarterly magazine), plus support for market-making and other activities, will assist with further advances in volume and liquidity.
“The CSE is firing on all cylinders, with an improved capital markets backdrop helping our issuers to meet, and in some cases exceed, their financing targets,”
said Richard Carleton, CSE Chief Executive Officer.
“Having added several talented executives to our team, the CSE is positioned even more strongly to facilitate access to growth capital for entrepreneurs at the lowest possible cost, while providing liquid and accessible trading services for investors anywhere in the world.”
CSE is proud to present its most recent quarterly update video and press release below highlighting the record first half of the year at the Canadian Securities Exchange:
Growth in Trading Volume and Financings Highlight Productive Q2
CSE Posts Record Activity in First Half of 2016
The Canadian Securities Exchange (CSE) is pleased to release an update on activity of the second quarter of 2016, resulting in a record first half of 2016 highlighted by record trading volume, changes to listing requirements, and initiatives to help CSE issuers build on recent positive momentum in financing and other aspects of corporate development.
Trading volume in CSE listed securities grew 64% compared to the first half of 2015 to 2.01 billion shares;
The CSE finished the first six months of 2016 with 328 listed securities, up 12.3% compared to the same period the previous year;
CSE companies conducted 178 financings for total gross proceeds of $123 million, up 28.4% over the first half of 2015;
Trading on the CSE in securities listed on other exchanges totaled 1.82 billion shares, an increase of 19.1%.
Growth in trading volume and financing proceeds during the first half of the year reflected both the increased number of securities listed on the CSE and noticeable improvement in Canadian investor sentiment across all sectors. The 2.01 billion shares traded in CSE listed securities in the first six months of 2016 puts the exchange well ahead of its pace of 2015, when a record 2.47 billion shares traded for the full year.
The CSE is proud to highlight a busy first half supporting issuer outreach to the financial community with a variety of activities. These include CSE Days held in major cities where executives enjoy the opportunity to present to audiences of financial industry professionals, retail investors and issuer peers.
In addition, the CSE launched a new website in April. The modern format makes it easier for investors to gather information on CSE companies, and for both existing and prospective issuers to access the resources they need to make interaction with the exchange as efficient and cost-effective as possible. The CSE’s new website can be accessed at http://www.thecse.com.
Other achievements in the first half of 2016 included a comprehensive update to initial listing requirements. Proposed changes were published for comment in February and following feedback the modified rules were submitted for regulatory approval. The new requirements will become effective in Q3 upon publication of a notice from the exchange.
In the second half of 2016, the exchange will work to finish a review of continued listing requirements for listed companies. A list of proposed amendments will be published for comment in the near future.
“The CSE team is constantly working on new and dynamic ways to drive our mandate, which is supporting entrepreneurs and lowering the cost of capital for early stage companies,”
said Richard Carleton, CEO of the Canadian Securities Exchange.
“The activities we undertook in the first half of 2016 made our offering as an exchange stronger, as evidenced by growth in both trading volume and financings closed by our issuers. We will continue to support CSE listed companies with a variety of public efforts, and by working with regulatory authorities to improve the operating environment for Canadian financial markets as a whole.”
In markets, timing is everything. With re-energized commodities prices and an evolving regulatory landscape, the spring edition of the CSE Day events in Toronto and Vancouver offered a well-timed opportunity for CSE-listed company representatives and investment professionals to assess the capital raising environment for emerging public companies.
The value proposition for attendees of these events continues to ring true. CSE Day sessions this year attracted strong participation from CSE-listed companies and investment professionals who look forward to the opportunity to share knowledge, get connected, and be inspired.
CSE Day Toronto: Focus on Finance
CSE Day Toronto took place in the heart of Bay Street and once again drew a diverse audience representing the spectrum of the investment community.
Based on feedback from attendees of previous sessions, this year the CSE decided to evolve the agenda to focus on addressing issues relevant to companies looking to raise early stage capital.
Specifically, two discussion panels as well as a presentation on the RegA+ roll out in the US comprised the first half of CSE Day Toronto followed by a ‘Pitch Reception’ and networking event to close out the day.
Navigating the Terrain
The first of the two presentations entitled “The New Realities of Public Company Financing” discussed investment dealer and prospectus exemptions, crowdfunding trends and an overview of the Ontario Offering Memorandum (NI 45-106).
Moderated by Michael Dolphin (WeirFoulds), panel members Raj Dewan (WeirFoulds), Jason Saltzman (Dentons), Richard Jozefacki (Foster & Associates), Ari Todd (Frontier Merchant Capital) and Stephanie Mann (Stockhouse) discussed new prospectus exemptions as well as the current opportunities and challenges facing crowdfunding in Canada.
In the second panel discussion, entitled “Enhancing Liquidity – Challenges and Options” moderator Elizabeth Naumovski (Caldwell Securities) explored different aspects of markets including the role of IR in facilitating liquidity, market makers and their role in marketplaces as well as the impact of electronic trading on junior markets. Participants on this panel included James Beattie (D&D Securities), Cathy Hume (CHF IR), Adam Schmidt (CSE) and Dave Houlding (Independent Trading Group).
To complement the financing panel discussion, Jason Paltrowitz, Executive VP of the OTC Markets Group in the US, provided an overview of Regulation A+, which has introduced equity crowdfunding in the US as the last stage of the JOBS Act. Reg A+ allows companies to raise up to $50 million in a public offering traditionally only reserved for participation by accredited investors.
A noteworthy example of the promise of this new funding mechanism cited by Paltrowitz was Elio Motors. Elio Motors raised US $17M and reached a market cap of approximately $1B shortly thereafter.
CSE Day Vancouver: Succeeding as an Entrepreneur
West of the Rockies, CSE Day Vancouver featured a slightly different format than Toronto. An exclusive executive lunch presentation was held at the historic Vancouver Club in which attendees were treated to a great meal as well as food-for-thought on entrepreneurship and business success from renowned entrepreneur and speaker Peter Legge.
Among the highlights of his presentation were numerous anecdotes from his own business experience, each revolving around a common theme of “becoming what you think about the most.” All the attendees of the executive lunch also received a complimentary copy of Legge’s book entitled “Lunch with Joe”.
In addition to the presentation, Richard Carleton, CEO of the Canadian Securities Exchange provided a brief update on the exciting online initiatives being undertaken by the CSE, including enhancing the Exchange’s digital presence.
CSE Twitter followers and many more from across the globe were able to tune in to the live broadcast of the networking session and engage directly with VP of Listings Development James Black as he navigated the event venue. Live broadcasts of the pitch presentations were also provided online.
Pitching for Success
In keeping with CSE Day tradition, several CSE-listed companies also presented their company pitches to event attendees.
For those not familiar with the CSE pitch presentations, company representatives have the opportunity to tell their firm’s story to attendees within two minutes. Not only do firms who present benefit from the practice of their pitch to an important audience, the CSE also records and makes these ‘pitches’ available on the CSE YouTube channel here.
In total, CSE Toronto saw 13 companies present while CSE Vancouver had 12 provide company pitches. Below is a list of those firms who participated in each city as well as videos of company pitches.
Regardless of which side of the country the CSE traveled to, the challenges facing entrepreneurs trying raising early stage capital are very similar.
By providing a forum for CSE-listed issuers to learn alongside one another as well as to engage with thought leaders and innovators in the capital raising space, the CSE continues to change the paradigm of how a securities exchange can support its clients. Commented Barrington Miller, Director of Listed Company Services:
“We are excited about the evolution of our CSE Day events – having welcomed well over 200 guests to our two most recent events in Toronto and Vancouver and attracting our strongest slate yet of presenters. What really stands out is the diversity and entrepreneurialism of the audience that joins us at these events. There is always a palpable sense at these forums that the next game changing company could be there in the crowd, potentially making its next critical connection on its path to success.”
With no shortage of potentially market moving events on the horizon, investors, markets and publicly listed companies will have a great deal to digest. Fortunately, the CSE Day events will be back again in Toronto and Vancouver this fall. Despite the uncertainties in the marketplace, continuing to invest in knowledge and development is always a sound bet, regardless of the timing.
If there’s something all growing companies know, it’s that investment capital is crucial to bringing a business to fruition. Having overcome many of the challenges most growing firms do, the Canadian Securities Exchange (CSE) understands the terrain entrepreneurs can encounter in the journey to landing a successful deal. While important to the end result, getting the attention of investors is only the first step. With so much competition for investors’ capital and attention, however, successfully landing a deal starts by investing in compelling messaging and becoming a great communicator. Fortunately for issuers listed on the CSE, there’s a special event that can help deliver on all of the above.
CSE Day Numbers Continue to Grow
Building on the strong interest from the sessions in Toronto and Vancouver last spring, the CSE once again held CSE Day from sessions in the fall of 2015. These sessions took place in New York City, specifically at the OTC Markets headquarters as well as at feature locations in Toronto and Vancouver.
Judging by the turnout, CSE Day events were once again, incredibly successful.
With over 200 attendees spanning the investment industry spectrum, over 30 listed issuers participating in workshops and pitch presentations, and numerous handshakes and meetings arising from each session’s networking events, the CSE Days’ provided firms looking to raise capital the tools and opportunities they needed to craft compelling pitches and interact with deal makers.
As many attendees noted, however, CSE Day was about more than just the numbers. Francis MacKenzie, President of CSE listed Metalo Manufacturing Inc. (CSE:MMI) and an attendee at the CSE Day Toronto noted:
“The CSE Day Toronto was an exceptionally well organized event …. The CSE continue to serve and support their listed companies with a dedication that should be applauded…truly recommend the CSE for any early stage companies keen to participate in the public markets.”
For the CSE, it is exactly this kind of sentiment from its listed issuers that continues to drive the Exchange for Entrepreneurs to build and implement a better model for public growth-stage companies.
The First Pitch
With the fantastic season of the Toronto Blue Jays not far in the rear view mirror, the lessons learned from great pitching are clear.
Listed issuers who attended pitch sessions in Toronto, New York and Vancouver were treated to great tips from seasoned communications professionals. Marc Gordon of Fourword Marketing, Tony Herrling of Brainerd Communications and Taylor Thoen of BTV-Business Television, for example, gave the listed issuers in attendance the framework and feedback needed to craft their company’s story in a way that investors are most interested to hear it.
Sharpening the Saw
While being able to deliver a great pitch is essential, it’s not the only skill needed to win over potential investors. As any publicly listed firm knows, staying current on compliance and regulatory matters, especially those that directly impact raising capital can be crucial to navigating opportunities.
This year’s suite of sponsors and event partners provided valuable information in areas growing companies need to stay on top of. Representatives from sponsoring firms provided insights into topics ranging from shareholder activism to audit compliance to listing in the US. The sponsors for this year’s events included:
Finally, CSE Day sessions also provided an opportunity for the CSE management team to recap the Exchange’s performance and highlight upcoming opportunities the CSE is hard at work on bringing to key stakeholders.
The recap of key metrics showed the CSE that the market continued to vote with its dollars. Through the end of September the CSE saw over $122M raised by issuers, more than $14M compared to the same point last year; over 180 completed financing deals and the number of listings exceed 300 for the first time in the Exchange’s history.
Trading volumes also remained strong. As CEO Richard Carleton pointed out, at one point during the past year, the CSE was the busiest Canadian stock exchange in terms of volume of shares traded – a signal that the marketplace is hitting its stride with investors of all sizes.
As the CSE marketplace grows, it is also evolving. The CSE continues to seek out and encourage real businesses to consider the advantages that being public on the Exchange for Entrepreneurs brings. It is a message that continues to resonate with the entrepreneurial community.
Commented James Black, VP Listings Development at the Exchange:
“the CSE Day sessions are becoming our marquee issuer event, where we gain an opportunity to educate, inspire, and connect our listed companies. These are truly community events where listed companies can continue to build their toolkit for success in public markets and hopefully make useful connections to service providers and investors that can help them reach their goals on our market. We look forward to continuing to grow these events in the coming year.”
Built by and for Entrepreneurs
It’s not often that a triple bottom line gets met. For the CSE Day sessions, however, listed issuers, investors and the CSE collectively benefited from these events.
By making the investment of time and knowledge in the firms listed on the Exchange, the CSE is optimistic that those companies can, in turn, improve their odds of landing the deals that help bring real businesses to fruition.
As every entrepreneur knows, having a great story to tell and being able to tell it can spell the difference between an uncomfortable elevator ride and a lucrative one. Of course, it helps tremendously if the right people are in the elevator to hear that story in the first place.
As the Exchange for Entrepreneurs, the CSE has been supporting its listed issuers with a series of recent events geared towards building great pitches and bringing together the right audience to hear them.
These sessions, known as “The CSE Day”, were held in Vancouver and Toronto, and provided listed companies the opportunity to work with leading communications experts, network with fellow entrepreneurs and of course, connect with the CSE team.
The CSE Day Vancouver, which took place in April, was a classic West Coast experience. Co-sponsored by Equities.com, Clark Wilson LLP and Davidson & Company LLP, it started early with a power breakfast and delivered plenty of food for thought. Attendees were provided with a wealth of insight on upcoming regulatory changes to raising capital in Canada and the US as well as on key issues in the tax landscape for public companies to be aware of.
The Toronto edition of The CSE Day, by comparison, took place in the heart of the concrete jungle in the exquisitely designed Trump International Hotel on the Exchange (for Entrepreneurs) Floor. The CSE Day Toronto was co-sponsored by chartered accounting firm Collins-Barrow, Equities.com and information distributor Newsfile Corp. and featured presentations from Richard Carleton, CEO of the CSE, as well as pitch workshops and an incredibly lively networking mixer.
Continuing to Shine
In both sessions, the CSE provided updates on the continued strong performance of the CSE for the first several months of 2015. From listings, to trading activity to connectivity to financing deals, the CSE maintained positive momentum as Canada’s fastest growing securities exchange.
Some of the major milestones achieved by the CSE as of mid-May 2015 included:
Completing 93 financing deals worth over $67M and 22 new listings.
Hints were also dropped of bigger and bolder moves on the horizon.
Additional connectivity of online brokerages as well as bringing a major online financial portal aboard as a market data provider are around the corner. Also, on the heels of a very productive trip to Europe late last year and interest from partners in the US and further afield, the CSE is looking to widen its global footprint this upcoming year.
To help firms listed on the CSE improve the ability to tell their company stories, a cornerstone of the The CSE Days were free hands-on pitch training sessions with communications professionals.
In Vancouver, Julie Durant of Market Motion Media led a workshop on how to provide an effective pitch; in Toronto, Marc Gordon shared his formula for creating a powerful and compelling talk to a full house.
Of course, with any skill, it’s practice that makes perfect.
After the workshop sessions, participating firms were given the chance to show off their pitches during the networking session that followed.
In total, a dozen CSE-listed companies took part in providing their pitches for fellow attendees. To view the full slate of company pitches, check out the video below or visit our YouTube channel here.
Regardless of which side of the Rockies attendees participated in, the feedback from The CSE Day was overwhelmingly positive.
Attendees, presenting companies and sponsors shared in their assessment that The CSE Days demonstrate that the Exchange for Entrepreneurs continues to hit the right notes with junior firms.
According to James Black, VP, Listings Development, “ss the Exchange for Entrepreneurs we are proud of the fact that much of our success has been based on providing real value for our listed issuers. Events like The CSE Day are great for learning as well as for bringing entrepreneurs together to interact with one another. We’re genuinely excited to continue holding these sessions throughout the year.”
By all accounts, The CSE Day Vancouver and Toronto were incredibly successful. With insightful presentations on raising capital, hands-on pitch workshops and the chance to network with key members of the capital raising community, the CSE is continuing to help entrepreneurs make the elevator to the top much more enjoyable experience.
Enjoy the pictures from The CSE Day Vancouver and The CSE Day Toronto!
The CSE Day Vancouver Spring 2015
The CSE Day Toronto Spring 2015
Special thanks to CSE staffers Barrington Miller, Rob Cook, Natalie Kovacs, and Kayla Matson for helping make these events a tremendous success.