Tag Archives: Proactive Investors

Going Public? Put a Communications Upgrade Near the Top of Your To-do List

Congratulations on taking your company public on the Canadian Securities Exchange.  You have made a wise decision that will benefit you, your team and your company in many ways.

With your new status, however, comes responsibility to an expanded base of shareholders and a duty to maximize the value of your company in a manner different than when you were private.  Now, the value of your organization is reassessed by the investment community every second of the business day.

Build it and they will come?  Don’t believe it for a moment.  There are thousands of listed companies in North America vying for the attention of the investors you seek, and the companies that attract them are the ones who combine business success with marketing savvy to ensure they are at the front of the line when investors scout around for ideas.

Unless you know every shareholder in your company and have a good portion of the financial community in your digital rolodex, you will need assistance with communications.

How much assistance?  A typical IR budget for a microcap stock is in the range of $100,000 per year.  This includes travel to meet investors and investment professionals, participation in a handful of carefully chosen events, digital outreach to keep the story live 24 hours a day, and perhaps an external IR firm to bring an instant base of interested parties.  If you are sufficiently mature as a corporation, an internal IR manager might be a consideration.  And…we’re already closing in on $200,000.

A lot of money, right?  Well, if a $200,000 outlay adds to your market capitalization by $3 million (6 cents per share assuming 50 million shares outstanding), few will argue the money was not well spent.  Especially if you plan to raise equity capital anytime soon.

Add in satisfied investors and better sleep at night, and it really is a prudent decision.

You’ll need people you can trust to guide you in putting your strategy together.  There are plenty of hands who will take your money – ask around to make sure you team up with the ones who follow through with the promised effort.  And while a company needs to be connecting with existing and prospective shareholders regularly, only spend money on a full suite of resources when you have the corporate developments to really leverage them.

A prevented sell has the same value as a buy.  Inform your existing shareholders with regular written updates, media interviews, and an increasingly popular tool — video.  Complement important press releases with a brief video explaining your latest results, how your process works, or what your new facility looks like inside.  Let shareholders look the CEO in the eye online and take his or her measure.

A favorite related story involves a company whose stock was stuck between $0.50 and $0.80.  Management put tremendous effort into investor relations, but no matter how hard they tried they could not break through $0.80.

One day, on meeting number 200+, the company met an analyst who got the story right away and encouraged their trading desk to begin buying the stock in size.

It was not long before the stock broke through $0.80…on its way to more than $3.00.

The point is that if you have a good company, there are investors out there who will see what you see, adopt your vision and back you with money.  But connecting with them is a numbers game.  Reach out to a few dozen people and you will have to be very lucky to find backers.  Reach out to a thousand and your odds can start to look pretty good.

This story was written by Peter Murray  and featured in Service Providers magazine.

 

CSE CEO speaks with Proactive Investors

Richard Carleton, CEO of CSE – Canadian Securities Exchange recently spoke with Proactive Investors and discussed the recent rebranding from CNSX to CSE, the advantages of listing on the exchange, and touched on the specific reasons why Ned Goodman and Tom Caldwell are active investors in the company.

CSE Chairman puts “our mouth where our money is” with Urbana listing on CSE

Urbana CorporationProactive Investors recently profiled one of CSE’s newest listings – Urbana Corporation – a closed-end investment company (CSE:URB and CSE:URB.A). The company’s Chairman, Thomas Caldwell is also the Chairman of CSE – Canadian Securities Exchange. In the article much is discussed around the reasons for co-listing URB shares on CSE. Other highlights from the article include:

  • A clear explanation of how the CSE listing model works and how it focuses on regular monthly disclosure from issuers in favour of exchange merit reviews from the exchange;
  • Prospects for the closed-end investment fund model that Urbana utilizes – predicting this will be a more popular vehicle as mutual funds lose their appeal;
  • Some insight into Urbana’s investment philosophy and the unique things the fund can do due to it’s size.

For the full article by Deborah Bacal please click here!

“Simplified CSE offers faster and cheaper approach to listing in Canada”

Proactive Investors (http://www.proactiveinvestors.com/) was kind enough to interview CSE CEO Richard Carleton regarding the company’s transition from CNSX to CSE – Canadian Securities Exchange.

The article covers a wide array of topics including why the name was changed, the difference that this will make for customers, and some of the initiatives that are planned for the upcoming year and beyond.

Some quick points from the article:

  • CSE estimates that it accounted for 17% of the new issuers entering the Canadian public markets last year;
  • CSE has combined Pure and CNSX into a single technical platform in an effort to simplify the brand and introduce efficiencies for customers;
  • The exchange was recently backed by Dundee Corp. Chief Executive Ned Goodman and Tom Caldwell, Chairman of Caldwell Securities.

This is a great overview of where the CSE is at with respect to its leadership, product, and prospects moving forward – for the full article by Deborah Bacal please click the following link: http://www.proactiveinvestors.com/companies/news/51203/simplified-cse-offers-faster-and-cheaper-approach-to-listing-in-canada-51203.html