If there’s one thing common to companies of all sizes and structures, it’s that they all need capital to grow and thrive. The ecosystem of how and where raising capital takes place, however, has recently been undergoing rapid evolution.
Whether or not this ecosystem and its stakeholders are moving in the right direction was the central theme of a panel discussion at the 2014 Canadian Investor Conference entitled: “Financing Methods: Where is the Money?”
Organized by Cambridge House International in Toronto, the panel included distinguished members from across the investment industry landscape and was moderated by BNN anchor and reporter Andrew Bell.
The panelists included the CEO of the CSE, Richard Carleton; President of the TSX Venture Exchange, John McCoach; President, and CEO, OTC Markets Group, Cromwell Coulson; President and CEO of BoardSuite, Oscar Jofre; and Co-Founder and Managing Director of WoodsWater Capital LP, David Franklin.
The discussion was a lively one offering a number of perspectives related to the availability and accessibility of capital for early-stage companies in Canada. Among the topics that the panel covered were why retail investors have been reluctant to participate in resource investment markets, the viability of equity-based crowdfunding and the challenges facing early-stage companies in raising capital.
For ease of reference, the following is a list of topics that Richard Carleton spoke to as part of the panel. To view his sections of the talk, simply click on the urls below:
As was shown in the panel discussion, there are many different options now available to firms interested in raising capital. In spite of their differing positions on which direction or platform would be the most viable, what all the participants agreed upon was the high degree of change the capital raising landscape is experiencing.
From the CSE’s perspective, the positive growth and continued interest by companies to list on the Exchange are an important signal from the market. This interest is a validation that the CSE plays an important role in helping entrepreneurial firms attract and obtain the kinds of capital required to grow their business.
While this panel highlighted the uncertainty as to where the money is, it also hinted that a marketplace that efficiently connects capital to innovators is likely to be the place where that money will be going.
Click below to watch the video of the full panel discussion.
As Canada’s “Exchange for Entrepreneurs”, one of the key goals for the Canadian Securities Exchange (CSE) is to create a favourable capital formation environment for our listed companies.
The numbers to date this year demonstrate that we are making good progress towards this goal: 82 companies have completed 135 financings raising a total of $104 million. Leaving aside one monster deal done some years back by one of our companies, this is the first time that CSE-listed companies have collectively raised more than $100 million in a single calendar year. It’s particularly gratifying that we reached this milestone with more than a quarter to go.
Combined with record trading numbers, and over 50 new securities listed this year it is clear that the exchange’s message is resonating with businesses looking to the public capital markets for investment.
Here is the quarterly breakdown for funds raised for 2014 YTD as compared with 2013:
More than Just Numbers
According to James Black, VP of Listings Development “this is a great milestone for the exchange – further proving that our proposition for the Canadian capital markets is very much in-line with the needs of companies seeking to raise capital for exciting early-stage businesses.”
Among the names of companies that successfully raised additional financing this year were Pivotal Therapeutics (PVO), Helius Medical Technologies (HSM), Novo Resources Corp. (NVO), VoodooVox Inc (now UpSnap – UP) and RESAAS Services Inc (RSS).
The companies raising money on the CSE come from a broad cross-section of industries.
There are signs of life in the beaten down mining sector, with 31% of the funding for transactions having been completed in the space. In addition, the technology sector has accounted for almost half of the activity (see chart below).
Staying the Course
With trading activity and financings pushing record levels, the CSE is hitting its stride as an exchange that more and more public companies are turning to as the best option to access capital. Underpinning the shift is a combination of factors that include pricing, simplicity and service.
For many public companies, especially early stage ones, the prospect of being able to effectively allocate resources to fund company activity is appealing. As the CSE’s CEO Richard Carleton put it:
“This funding milestone is a clear indication that we are supporting companies’ capital raising needs by providing the most efficient public market in Canada for raising money. Companies raising capital on the CSE are subject to fixed, low-fees, ensuring every dollar raised flows back to their business and not to the exchange”
Going into the final stretch of 2014, the momentum for the CSE looks good in all corners of the business. Best of all, entrepreneurs are gaining access to capital and are now better able to put that capital to work driving innovation and building successful enterprises.
That is the kind of good news story that everyone enjoys hearing again and again.
The Canadian Securities Exchange (CSE) is pleased to announce that it will be exhibiting at the upcoming Canadian Investor Conference in Toronto (Canvest) on September 25-26. This show will be a slight shift from the usually scheduled Toronto Resource Investment Conference as it will be broadening the scope of the show across the resource and technology sectors.
The CSE is scheduled to be housed at exhibit booth #809. We applaud the organizers at Cambridge House International for organizing a show that presents investment opportunities across several sectors as this is certainly tailoring the show to the appetites of today’s investment community in Toronto.
Additionally, CSE CEO Richard Carleton will be participating on the panel titled, “Alternative Financing Methods” along with OTC Markets Group CEO Cromwell Coulson – we are looking forward to hearing their insight regarding the evolution of North American capital markets.
The CSE is happy to announce another key addition to the ranks of online discount brokers connected to the exchange by welcoming Scotia iTRADE®, who are now offering its clients online trade execution services for the CSE.
Formally announced in a press release that can be read here, this is a significant development for CSE and the investment community in Canada. Scotia iTRADE® is a popular platform for Canadian investors and another venue through which retail investors can access CSE stocks. We applaud Scotia for responding to client demand and adding this service.
Acknowledging the significance of this development, CSE CEO Richard Carleton had the following comment:
“As one of Canada’s largest online brokers, Scotia iTRADE is an extremely important part of the investment community,” said Richard Carleton, CEO of CNSX Markets Inc. “Scotia iTRADE’s provision of CSE client online trading and CSE market information services marks an important milestone in our efforts to increase visibility and access to the exchange. On behalf of our listed companies and their investors, we welcome Scotia iTRADE to the CSE”
This year’s PDAC was a great opportunity to connect with the mining & exploration industry, government, investors and more. For the Canadian Securities Exchange it was particularly eventful because in addition to having a very busy booth at the Investor’s Exchange, our team was also involved in keynote addresses, panels, networking events (including the parties!) and interviews.
The PDAC has continued to be the conference where mining and exploration companies and investors (big and small) converge to talk about the state of the industry, raise capital and talk about what’s coming next.
With so much going on, there’s no shortage of things to reflect on, however here is a sample of what we got up to at the convention and our thoughts on what the remainder of 2014 holds for the industry.
Our conference swag also brought in curious passers by who were interested in getting their “shine on” with our CSE-branded screen wipes and shoe shiners.
There were lots of exciting conversations, sessions and activities outside of the exhibition hall that we participated in. Here are some of the highlights:
Mining Outlook Luncheon
One of the first big events was the sold-out mining outlook luncheon. Deputy Chairman of the CSE, Ned Goodman, was the keynote speaker at this session and he provided the audience with an entertaining and thoughtful perspective of the current state of the global economy with a particular focus on currency and gold. We’ve pulled together an interesting selection of tweets from folks in the audience at the presentation.
An Exchange with the Exchanges
CSE’s CEO Richard Carleton participated in the panel discussion on the role that stock exchanges can play in assisting mining (and in particular junior mining) and exploration companies in navigating the current capital raising crisis. Joining Richard on the panel was Eddie Grieve of the Australian Stock Exchange, Francis Stenning of Bolsa de Valores de Lima, Peru and John McCoach of the TSX Venture Exchange.
At this event Richard outlined some important points about what exchanges can do and what other stakeholder partners can do in order to help companies adapt to the new market realities. On the exchange side, the CSE is lowering the cash and operational burden for companies to maintain a public listing and making it easier for trading desks to access market data.
Examples of the impact of disclosure policy on companies was also highlighted. The Australian Stock Exchange was shown as an example of an exchange that confronted the issue of regulatory burden and the success and challenges it experienced as a result.
One very interesting point that came up was the idea of regulatory-driven restrictions on the kinds of investments that could be recommended to individuals based on their age. Richard Carleton aptly framed what he found troublesome about this when he pointed out that by restricting the age that certain products could be recommended to individuals, people such as Ned Goodman would be steered away from investing in equities.
Networking Lunch/Make the Switch Seminar
A packed house attended the networking lunch co-sponsored by the CSE, MNP LLP and Chitiz Pathak LLP. Attendees were treated to lunch as well as some food for thought as several CSE-listed companies presented a brief snapshot of their company story. A hats off goes to CSE Senior VP Robert Cook for being able to keep everyone on course during the presentations.
CEO Richard Carleton also provided some brief highlights on the recent performance of the exchange and on the exciting forthcoming developments at the CSE – including further progress with getting more online brokerages to provide online trading and real-time data to their clients.
After the networking lunch, the CSE provided a quick overview of what was involved in transitioning to listing on the CSE, including details on timing and the steps required. For more information on the process, click here.
For those who know Ned Goodman, he is not one to beat around the bush. The electric interview between him and Howard Green of BNN’s Headline was a great snapshot of Ned’s views on gold and on what it takes to successfully run and manage mining companies. Click the following link to access this interview.
The PDAC, especially this year, exemplified the resilient spirit of the mining industry. When faced with adversity, the industry is working creatively to adapt to the current market and the CSE, with its advocacy efforts and solutions for industry partners, is proud to be a part of that solution.
With the number of deals, announcements and meetings that took place at the PDAC, 2014 looks to be an exciting year ahead for the industry and most certainly for the CSE and our partners. We’re grateful for the connections we have made and look forward to building off the positive momentum from PDAC.
In just a few days, the 2014 edition of the PDAC conference will take place. Hundreds of exhibitors and thousands of attendees from all over the world are expected to converge at the Toronto Convention Centre to learn about and discuss the latest trends, thoughts and technologies impacting the mining industry.
Among the dozens of topics that will be discussed in various panels and workshops, one of the burning issues on the minds of many attendees will be the current capital raising climate.
As many readers may already know, the CSE has been actively engaging in the conversation about finding ways to enable junior mining and exploration companies to successfully weather the current capital raising storm.
From the exhibition floor to the podium, the CSE will continue in its efforts to promote innovative and pragmatic solutions for junior mining and exploration companies as well as for the industry as a whole.
Here is a rundown of the events and activities the CSE will be participating in at PDAC 2014:
Mineral Outlook Luncheon, Monday March 3rd
Ned Goodman, Deputy Chairman of the CSE and President & CEO of Dundee Corporation will be the keynote speaker at the (now sold out) Mineral Outlook Luncheon on Monday March 3rd from 12PM-2PM
An Exchange with the Exchanges: The Role of Stock Exchanges in Facilitating Capital-Raising, Tuesday March 4th
CSE CEO Richard Carleton will be a member of a panel of guests representing stock exchanges in Canada, Australia and Peru as part of the session entitled “An Exchange with the Exchanges: The Role of Stock Exchanges in Facilitating Capital-Raising.” This panel will discuss the state of the mineral exploration industry and the role that stock exchanges can play in helping companies navigate the current capital environment. For more information on this session at 10:30AM please click here.
PDAC Investor Lunch & Networking Event, Tuesday March 4th
The CSE is co-sponsoring a lunch and networking event along with MNP LLP, and Chitiz Pathak LLP. This event will feature presentations from CSE-listed companies as well as opportunities for PDAC attendees to network with one another. Click the following link for more details on the PDAC Investor Lunch which is to be held on Tuesday March 4th from 11:30AM to 1PM.
Making the Switch to CSE, Tuesday March 4th
For those interested in learning more about how to make the transition to the CSE, be sure to register for and attend the Making the Switch session on Tuesday, March 4th from 1:15PM-2PM.
In addition to events, the CSE will also be exhibiting at booths 2542 and 2544 where attendees can meet with members of our team as well as talk to representatives from several CSE listed companies.
PDAC 2014 runs from March 2nd to March 5th in Toronto at the Metro Toronto Convention Centre. For more information, including registration information and schedules, you can visit their website at http://www.pdac.ca/convention.
If you are attending, be sure to say hi to our team in person or via Twitter. We look forward to seeing you there!
CSE was thrilled to host it’s network of supporters from the professional community on February 18th at the Pan Pacific in Vancouver. This was the first leg in a series of events across Canada celebrating the new CSE branding and to extend a big THANK-YOU to everyone who has supported the exchange over the past decade.
A good time was had, including a rousing speech from CSE CEO Richard Carleton who presented a very exciting road map for the exchange over the coming months. Select pictures from the event are available in the gallery below:
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.
In October of 2013, the British Columbia Securities Commission (BCSC) held its annual Capital Ideas Conference with a particular focus on mining and venture capital markets. A broad variety of topics were discussed such as raising capital, high frequency trading, retail investor participation. The BCSC has put together a selection of videos of the panel discussion which is worthwhile to check out.
While it is intuitively simple, the impact of an entire economic sector losing altitude is jarring to the people and stakeholders within it. In addition to the companies themselves, the broker dealers, financiers and even the exchanges have been impacted by the downturn in the sector.
This conference was an interesting forum for two key reasons. First, it allowed participants to confront the reality of adapting to new models of doing business. Second, and more importantly, it enabled stakeholders to think about the future of the marketplace and to challenge the existing ways of operating in the capital markets that don’t fit the current cycle for many junior mining and exploration companies.
A topic the CSE is particularly passionate about addressing is the current state of raising capital faced by many junior companies. During a portion of the panel discussion that focused on the challenges facing public companies, CSE CEO Richard Carleton was invited to provide his thoughts on the subject.
According to Richard, despite the many challenges facing the industry, there are opportunities for positive change.
Some of the improvements to the marketplace he mentioned included:
Costs to be lowered for the dealers and companies that do business with exchanges
Promoting effective market making models
Levelling the playing field for access to market data
Check out the following video to hear Richards remarks on the possible opportunities to improve the marketplace for multiple participants.