CSE Performance

Canadian Securities Exchange CEO Richard Carleton’s Year-End 2024 Interview

One of the reasons financial markets never lose their vast audience is that they constantly evolve. Whether the change makes investors happy or not, there is always something new taking place, and one day is never the same as the next. It is a dynamic that was on full display once again in 2024.

Large-cap stocks remained strong, with broader indices setting dozens of daily closing records. And while not fully keeping pace, small-cap stocks finally caught a break in 2024, with those in the Canadian market benefiting from several months during which it seemed like gold was reaching a new all-time high every day. Retail trading staged a resurgence in the second half of the year, and institutional investors returning to the Canadian junior market became a frequent topic of conversation.

The Canadian Securities Exchange continued its evolution as well, and in May, celebrated its many successes over the 20 years since it became recognized as a stock exchange by the Ontario Securities Commission. The Exchange also undertook policy and other adjustments to business lines, joined an important global organization for exchanges, and went into the end of the year positioned to take advantage of renewed interest in cryptocurrencies and other digital assets.

With 2025 just around the corner, Richard Carleton, CEO of the CSE, shares his thoughts on Canadian market performance during 2024, the outlook for the year ahead, and previews important new initiatives that issuers and investors will surely want to watch.

In 2024, the CSE celebrated its 20th year as a recognized exchange. Issuers raised more than $26 billion in capital over the course of those two decades, and the CSE became one of the fastest-growing exchanges in the world. What does this milestone mean to you and to the broader CSE team, many of whom have been with the Exchange for a large part of their careers?

Our team takes a lot of pride in the success that the organization has experienced, and particularly in the last 10 to 12 years. It’s fair to say that the first 10 years were quite challenging, as we fought to become a meaningful part of the Canadian capital markets.

We are extremely pleased, not just with the achievements of the organization itself but those of CSE issuers as well. Companies have raised more than $26 billion through the facilities of the CSE, and being part of that means we have helped to foster the creation of new industries in Canada, the United States, and beyond.

The CSE has been part of several key investment themes over the last 10 to 15 years, whether it was the development of the cannabis industry in Canada and the U.S., or as is the case in the current market, the mining industry. The mining industry is vibrant, both in the so-called battery metals sector, which hopes to provide the needed materials to support the decarbonization of the economy as well as the precious metals group, which is riding the wave of record highs in the price of gold this year.

We’re very happy that we have made it this far, but our work isn’t done by a long shot. We look forward to continuing to help Canadian entrepreneurs, and entrepreneurs from around the world, tap into the Canadian public capital markets.

In June, the CSE announced that it had been recognized by the World Federation of Exchanges (WFE), the world’s foremost group for exchanges and clearing houses. What benefits do you anticipate membership will bring?

I’m actually just back from the annual meeting and general sessions of the World Federation of Exchanges in Kuala Lumpur, Malaysia, so I’ve had a chance to witness the organization operating first-hand.

Our move to join the WFE reflects the reality that a lot of our issuers are looking beyond Canada for capital. We see issuers going to the United States, the U.K., Europe, Australia, and South Asia for money. Raising money locally is a challenge in Canada.

As our issuers look beyond Canada, we need to be out there ahead of them to explain to local investors and investment funds that we are part of the Canadian capital markets framework, and one of the aspects of that is undergoing the process we did to become a member of the World Federation of Exchanges.

Our policies, procedures, and rules were vetted by three exchanges: the Warsaw Stock Exchange, B3 in Brazil, and the Johannesburg Stock Exchange, to ensure that we meet global standards for issuer regulation and investor protection. That provides overseas investors looking to trade or invest in companies listed on the CSE the assurance that we meet the standard that the WFE represents.

CSE issuers have been noticeably more active raising capital in 2024. Which industry sectors led the way, and have investors shifted priority with regard to the sectors they are most interested in?

As I mentioned before, the mining industry, and in particular precious metals exploration companies, have been the leaders in terms of the number of financings completed. They tend to be on the smaller side because the needs of early-stage exploration companies are certainly not the same as companies looking to do significant expansions, so they are not looking for hundreds of millions of dollars at one time.

We have also seen some interest in companies that have integrated artificial intelligence solutions into their product offerings. Of course, with the increase in the price of a number of cryptocurrencies over the last six to 12 months, a lot more interest has come back into the blockchain and crypto space.

The big numbers continue to come out of the cannabis sector, but in terms of the number of financings completed, it is the mining exploration group that is leading the way at this point.

Many market participants believe the second half of 2024 provided a more encouraging operating environment for smaller Canadian public companies than the first half. What were the factors behind this and how did they influence the broader operating environment for issuers and for the CSE itself?

I would say that it was the first three quarters that really weren’t very good, from either a trading or capital formation perspective. And I think it is fair to say – and I am not being controversial in any way – that the federal government’s approach to capital gains inclusion was a significant negative for companies looking to raise capital in Canada. I mentioned earlier that we are seeing our companies go out from Canada more and very much looking to the United States, in particular, for capital.

I don’t think there is any doubt that the decrease in interest rates beginning earlier this year helped fuel both the opportunity for companies to raise capital as well as secondary market trading activity. We were at a very low ebb for the first three quarters of the year, but recently there has been about a 50% jump in trading activity across Canada, and certainly, the CSE has more than done its part in contributing to this increase in activity. The interest rate picture is one aspect of it, and the volatility we have seen in the marketplace around the U.S. election and since has been a factor.

I hope it is sustainable into the new year, as it tends to be a leading indicator of more activity on the listings and capital formation front. As entrepreneurs see more trading activity, and thus more interest in the junior capital markets, they, and investors, are far more likely to support new companies coming into the market.

The CSE’s trading and data operations are closely related but also can be viewed as separate business lines. How has each performed in 2024?

People often ask about the relationships between the different business lines at the Canadian Securities Exchange, or any stock exchange. First and foremost, it begins with the issuers. If you don’t have interesting companies that are making progress toward achieving their goals, it is unlikely that people are going to trade the stocks or be interested in the market data related to those companies. So, where it really starts is having a group of companies that investors in Canada and beyond are interested in owning.

With that, as I mentioned earlier, trading levels on the CSE and other Canadian markets have been very low, and I mean levels that we have not seen since 2013 and 2014. It was a very challenging environment.

During that time, we made some changes to our market data policies. Effectively, we have increased some prices for the first time since 2016 in the market data segment. It was a significant bright spot for the results of the organization over the course of the year, and in fact, as the team worked to implement the new pricing and policies around connectivity and access to some of the Exchange’s services, we identified additional customers. As a result, the performance of the market data business has been very strong in 2024.

The CSE welcomed Rektron Group as its second Senior Tier issuer in 2024. What has the overall pace of new listings been? And how does the CSE’s new listings activity rank within the broader Canadian exchange landscape?

The pace of new listings has been quite slow. In fact, not since back into the earlier teen years of this century have we seen such low levels of activity. It has picked up somewhat but delistings over the course of the year exceeded the number of new issuers we welcomed. Unfortunately, we are in a position in the business cycle where the overall number of companies listed on the Exchange at the end of the year will be smaller than what we started with.

That said, we have seen a pickup in activity, particularly since September. Over the last two quarters, we have been listing about half of the companies coming to market in Canada, which is close to historic norms. Perhaps we did a little better in 2022, and particularly in 2021. But, as I say, I am encouraged that we are seeing an increase in the number of companies coming in, and more importantly, an increase in the number of applications that our team is receiving, indicating that we should see a little bit of strength in the new year.

It is clear from CSE press releases that the Exchange’s team has been on the road quite a bit in 2024, attending conferences and meeting foreign executives and industry leaders. The United States seems to be a particular focus. Can you discuss the strategy for international outreach at the CSE?

One of the things people need to appreciate is that a Canadian reporting issuer can access the same prospectus-exempt capital formation techniques that a U.S. reporting issuer can use in the United States. What that means is that without becoming a company that is a reporting issuer with the SEC or listing on Nasdaq or the New York Stock Exchange, you can actually do private placements in the U.S. with U.S. investors using only your Canadian Securities Exchange listing. And the same is true for the other Canadian exchanges.

Given that the U.S. is the largest capital market in the world by a substantial margin – I believe the number is currently something like 62% of the world’s equity market capitalization – it means companies listed on the CSE have a tremendous opportunity to raise money in the U.S. without the significant additional cost that would be undertaken if they were to list on one of the national market system exchanges there.

That has definitely become a real focus for us. As I say, things have been a little tough in Canada over the past year and a half, whereas the U.S. markets have been significantly more robust. There is more risk capital available in the U.S. for entrepreneurs as well. U.S. investors are very interested in the battery metals and the energy metals, and they have been supporting that investment theme for the last two or three years.

But our companies have also gone further offshore. For example, companies in the gold exploration sector, in particular, have always attracted a strong following from Germany and Switzerland. We see our issuers going there for capital formation, as well as to engage in investor relations roadshows and other activities. Many also ensure that their website and continuous disclosure materials are available in the German language.

So, again, that means that we have to be there making sure that local investors understand who the Canadian Securities Exchange is, that we are a material and meaningful part of the Canadian exchange landscape, and that they are not assuming additional risk by investing in a CSE company versus one that is listed on another Canadian exchange.

Bitcoin’s price is near a record high as we head into the end of the year. Does this signal anything about the potential for change in how capital markets operate? Are there businesses that the financial community should be taking a closer look at?

That’s an interesting question because it appears that Bitcoin and other cryptocurrencies are here to stay. And what we increasingly are seeing is those markets being pushed by the regulators in many respects to use the framework and structures that are familiar to those of us in the equity world. So, whether that is the idea that participants in these markets should be members of self-regulatory organizations like the Canadian Investment Regulatory Organization (CIRO) in Canada or that the instruments themselves should be considered securities and the distribution of those securities be done in accordance with the existing securities legal framework, there is an understanding that as these instruments become more mainstream, the traditional finance infrastructure is going to take care of a lot of the concerns people have had about participating in those markets.

It may not mean that they are listed on an exchange, but certainly that there is organized clearing and settlement and that there are regulated parties working in the space in an attempt to reduce some of the criminal aspects that we have seen with some of the companies involved in the crypto space.

As time goes on, it is likely we will see more use of tokenization or digitization of securities and utilization of some of the technologies fundamental to cryptocurrencies to facilitate clearing, settlement, and other processes underlying securities trading in North America.

It has taken a little longer than I thought it would – we were talking about this four or five years ago – but my sense is that progress continues. I think we will see some interesting initiatives in 2025.

In August, the CSE announced approval to introduce a market-on-close (MOC) facility designed to concentrate liquidity, reduce volatility, and enhance execution sizes at the close of trade each day. It comes in reaction to increasing fragmentation of trading activity across a growing number of execution venues. Can you talk about the MOC framework and its importance?

The market-on-close framework is complicated and I don’t expect people to go into the nuts and bolts of how it operates. Basically, the reason we are launching a market-on-close facility is to ensure that entities managing certain types of products, particularly exchange-traded products such as ETFs with CSE companies in them, have the opportunity to manage them in a way that ensures the tightest tracking of their portfolio to the underlying cash market.

This is a critical piece of infrastructure that we need to have in place for the CSE to both have ETFs listed on the Exchange and to make sure that our issuers have the opportunity to be in more ETFs, whether they are listed on the CSE or elsewhere. That is really the motivation – to support our move in 2025 into the ETF listing space.

What other plans does the CSE have for 2025? Can the financial community expect anything else new or different next year in the CSE marketplace and how the Exchange operates?

I’ve telegraphed that we expect ETFs containing CSE issuers to list on the Exchange at some point over the course of 2025. We think it is a great initiative because it will improve liquidity for component companies and increase the visibility of those companies as manufacturers of the ETFs market them to investors. We think there will be real interest from our issuers in wanting to be part of those ETF products, and we will be partnering with a variety of entities to bring them to market. So, this is certainly a big development that investors can anticipate next year.

We are looking to make some further adjustments to our pricing on the trading side with a view to ensure we can cut trading costs for the dealer community as much as possible, while promoting liquidity for companies listed on the Exchange or other-market securities that also trade on the CSE. We made some minor adjustments in October that led to a doubling of market activity in TSX and TSX-Venture stocks traded on the CSE. We think there is more to come in that direction as well.

And while I think it might be premature to go into detail, the Exchange has made some outside investments over the last few years. We are particularly interested in Tetra Trust, which is Canada’s first and leading custodian for digital assets. At this point, it is providing custody services for a number of Canadian and international financial institutions in Bitcoin, Ethereum, and other cryptocurrencies.

We believe there are more services that Tetra Trust can provide to support the continued development of digital assets, in particular, to make access to trading services for those instruments more widely available to retail accounts, particularly through the traditional brokerage community. I think we will see some interesting developments in that regard next year.

CSE Issuer Stories, Magazine

Carbon Removal That Powers Itself Is A Step Toward Saving The World

With the urgent need to remove billions of tonnes of carbon dioxide (CO2) from the atmosphere annually by 2050 to mitigate the impact of climate change, BluSky Carbon (CSE:BSKY) is stepping up with a cutting-edge solution designed to store carbon for thousands of years while at the same time producing low-cost energy.

Carbon removal is set to become a huge business, according to BluSky Co-Founder and Chief Executive Officer William Hessert, who spoke recently with Canadian Securities Exchange Magazine.

“There’s quite a bit of money being poured into this industry, and this is catalyzing it and creating opportunities for reputable suppliers like BluSky,” Hessert explains. “Carbon removal will likely generate more revenue in 2050 than many major tech companies put together.”

Hessert sees governments pivoting to a compliance market for carbon dioxide in coming years, with the U.S. government set to essentially become a carbon credit consumer when tax credits become technology-neutral.

“There are 66 gases regulated in the U.S., and carbon dioxide will become number 67,” he says.

“The companies building the voluntary market like BluSky are the bridge to the compliance market. That is how carbon removal becomes a multi-trillion-dollar market.” 

BluSky captures carbon through the pyrolysis of biomass such as organic waste, which involves heating the waste to a very high temperature with low oxygen levels. 

When undergoing pyrolysis, the waste splits into a char and a gas. The char, known as biochar, can store carbon for thousands of years. Meanwhile, BluSky’s pyrolysis process produces enough gas to power itself, thus making it self-sufficient. 

The company’s biomass pyrolysis pilot system, the Vulcan II, was successfully commissioned in January 2024 and is designed to remove up to 800 tonnes of CO2 per year. 

BluSky is now developing Vulcan Heavy, described by Hessert as the “crown jewel” of pyrolysis, which will convert 5 tonnes of waste per hour into biochar. 

Surplus energy from the pyrolysis process is used to power BluSky’s Kronos system, a direct air capture process that removes more CO2 from the atmosphere. 

“Typical direct air capture systems can be north of 2,000 kilowatt hours for a tonne of CO2. It affects the net amount of CO2 captured,” Hessert points out.

Adding a third dimension, BluSky’s Medusa carbon mineralization system captures the CO2 from the bioenergy’s exhaust. The Medusa then converts the CO2 into stone as a replacement for underground storage wells. The company completed a Medusa prototype in January 2024 with a larger version currently under development. 

BluSky has been able to keep the cost of its system down when compared to other carbon removal technologies due to its feedstock of choice, which requires minimal input costs. 

“It’s waste products like wood chips. The American forestry industry is buried in wood chips right now,” Hessert says. 

The company’s hybrid carbon removal process was designed to be capital-efficient and scalable to effectively address climate change.

“Our focus has been on building something that can essentially be copied and pasted over and over again to take advantage of different geographies and that can add to economic development,” says Hessert.

This includes being able to “mass-produce’” site selection, feedstock selection, permitting and so on.

“Everything we envision should be coming off an assembly line because to remove billions of tonnes of CO2, we need to be deploying millions of tonnes of capacity every week,” Hessert adds.

“For example, the Medusa and Kronos systems are essentially going to be massive stainless steel towers that are going to remove CO2 both from the bio exhaust and from the atmosphere and then ramped up with the ability to accredit carbon credits and be mass-produced over and over again.”

BluSky aims to have a facility capable of removing more than 150,000 tonnes of carbon per year in 2025. 

He compared this to Climeworks’ industry-leading Orca plant in Iceland, which uses direct air capture to remove about 4,000 tons of CO2 from the atmosphere each year.

BluSky expects to achieve initial profitability from equipment sales and the sale of carbon credits from the production of biochar. 

It has already secured a US$686,155 contract to build pyrolysis machinery for the City of Minneapolis, Minnesota.

And in late September of this year, the company announced an agreement with a purchaser based in the United States to sell biochar over a 10-year term with a total value of US$105 million.

On the carbon credits side, the company is forging partnerships with various entities that have experience selling carbon removal credits to major companies in the technology, energy and industrial sectors.

Hessert highlights the importance of communicating to enterprises the difference between carbon removal, which involves taking CO2 out of the atmosphere, and carbon offset, which could involve avoiding deforestation or other activities. 

“Quite a few of the largest companies, such as Microsoft, are pouring money into carbon removal, and it’s looking like they’re only going to increase their investments. So having partners that can communicate in a way that allows us to grow and remove more carbon is better for shareholders and better for the planet.”

BluSky has also partnered with Cula Technologies for data verification services to ensure transparency for carbon credit certification. 

Cula tracks machines, feedstock inputs, output quality and shipped products to verify that one tonne of carbon removal is truly equal to one net tonne of carbon. It uses sensors inside biochar machinery to monitor the temperature of the reaction, confirming its quality. Higher temperature pyrolysis creates higher carbon biochar.

“It creates a level of transparency that is truly unmatched,” Hessert says. “It gives greater assurances to a carbon removal credit buyer. The more assurances they have, the more comfortable they’ll feel purchasing carbon removal credits.”

As a carbon removal pioneer, BluSky will benefit from new opportunities as major players enter the space, bringing their own capital and connections. 

“What they are missing is the technology provider and subject matter experts, which paves the way for joint ventures or partnerships,” Hessert notes. “That’s going to allow us to scale even faster.”

While the rate of carbon removal required to achieve climate change goals is daunting, Hessert believes BluSky’s team is positioned to tackle this challenge. 

“We’re trying to save the world here,” he says. “We operate like a sports team. This is the major leagues. The championship we’re fighting to win is billions of tonnes of CO2 removed from the atmosphere. We’re sprinting toward it and this is the team to do it.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about BluSky Carbon at https://www.bluskycarbon.com/.

CSE Issuer Stories, Magazine

Israeli Food-tech Company Helps Alleviate Health Concerns Related To Commercial Frying

Beyond Oil (CSE:BOIL) is aiming to improve the health of untold numbers of people who enjoy the occasional guilty pleasure at their favourite restaurant: deep-fried food. Diners will probably never be aware of the healthier cooking going on behind the scenes thanks to this revolutionary technology, but it is important and deserves recognition.

While it took nearly 15 years to perfect, the company now has a powder that addresses the degradation of frying oil. Harmful carcinogens such as acrylamide, as well as free radicals with the potential to cause cell damage, can build up in oil used for commercial frying. Customers and kitchen staff are both exposed to serious health risks as a result.

Beyond Oil’s powder absorbs harmful elements and extends the oil’s lifespan while maintaining its quality. First tested and now selling commercially in Israel and Canada, the product has been shown to improve food quality and support environmental sustainability.

The next phase of the growth strategy calls for expanding adoption of the product across North America. In an interview with Canadian Securities Exchange Magazine, Beyond Oil Vice President Robert Kiesman discussed the company’s origins and its efforts toward achieving this important goal.

What inspired the development of Beyond Oil’s solution for improving the health profile of oil when it is used for cooking?

Our Founder and President, Michael Pinhas Or, is the inventor of the product, and he started it due to a personal health condition related to acidity. Like many Israelis, he approached the issue as a layperson, learning everything he could. He studied intensively and spent about seven years in his backyard shed going through trial and error.

Or invested his family’s fortune into developing the product. After his “aha” moment, the inventive breakthrough, he secured a patent, as well as clearance to sell from the FDA and Health Canada. Since then, he has remained heavily involved, and his son, Jonathan, became Chief Executive Officer after the company went public.

One of the reasons Beyond Oil is such an easy story to tell is because it connects to something universal: food. Everyone, no matter where they live, eats fried food, whether it’s fries or other items unique to their region.

When people see the photos comparing black, smelly, smoky oil to a jar of clean Beyond Oil, the reaction is clear. They don’t want to eat food fried in dirty oil; they want food cooked in clean oil. These visuals stick in people’s minds, which is a big reason why our story is catching on so well.

Can you explain how the technology works?

It’s a powder that needs to be filtered out. Most restaurant fryers use built-in filtration, external filtration or paper filtration. The good news is that Beyond Oil works in all three contexts. We are classified by regulators as a filtration aid, not a food additive, which makes it much easier to get regulatory approval in many countries.

The process is simple. You add the powder at the end of each day, the powder mixes with the molecules of toxins and attaches to them and then it all gets filtered out, which removes the toxins from the oil.

These toxins include trans fats, total polar materials (TPM), acrylamide and others. There are dozens of these toxic compounds.

One reason oil smokes when it gets old is that plastic-like molecules form in it, meaning you’re essentially burning plastic into the air. Beyond Oil works to clear that out.

Is there a rationale for restaurants using Beyond Oil’s product aside from serving healthier food to their customers?

The biggest part of our story is that we offer a legitimate health solution with positive ESG outcomes, and we also save restaurants money because they don’t need to replace the oil every two or three days. They can use it longer because the oil stays cleaner. How many stories do you know that have a positive health outcome, provide an environmental benefit and save businesses money?

The environmental benefits are clear. Producing oil requires water, electricity and fuel. By extending the oil’s life, we reduce the demand for oil, meaning less oil production, transportation and disposal. So, in addition to the health and cost benefits, there’s also a legitimate environmental impact.

Could you elaborate on the specific markets you’re targeting?

We’re focusing on two main uses for Beyond Oil. The first is restaurants, and the second, which is much larger, is the industrial frying market. These are large industrial factories that use thousands of litres of oil and typically freeze the fried food before sending it to retailers like Costco or Superstore. This is a much more sophisticated context for us to be working in, and while we’re publicly focused on restaurant deals and the rollout, we’re quietly advancing into the industrial market as well.

In the industrial sector, we’ve conducted pilot programs with several large, multibillion-dollar companies in North America. We also announced that we signed a letter of intent (LOI) with a multinational company that designs and builds highly sophisticated filtration systems for these large frying factories. The goal is to run full-scale pilots with these industrial operations because our powder seems to be compatible with their filtration systems, which is a significant breakthrough for us.

What kind of feedback have you received from these initial industrial tests, and how do you plan to scale this system globally?

The feedback has been tremendous. First, I want to highlight that we have two main distributors – one in Canada and one in Israel. Both distributors, who are now selling our product commercially, made strategic investments in our company during the first six months of this year. This is a significant achievement for a small-cap company and indicates their strong confidence in our product.

We’ve received a range of positive feedback from end users. Firstly, our customers report a decrease in oil consumption. Secondly, they find the product healthier due to fewer toxins. Thirdly, the food tastes better because the oil is cleaner, resulting in crispier, fresher and lighter food that isn’t soaked in oil.

Additionally, we’ve received unexpected ancillary feedback. Customers need less warehousing for oil and experience reduced steam and smoke. Multinational customers examine the outcomes in great detail and are providing valuable insights, such as improvements in flavour. Overall, the feedback has been overwhelmingly positive, with no significant negative comments.

What catalysts can investors anticipate in the near future?

We’re expecting catalysts in all three areas of focus that I’ve outlined: expanding into the West with the two multinational fast food chains that we are now selling to in Israel, adding new U.S. chains as customers and getting fully commercialized into the industrial frying market. I’d also like to point out that we have hit major milestones on a consistent basis since the beginning of the year. 

But as impressive as our performance has been this year, it’s not going to be a major success story until we hit it big in North America. The plan now is to take the success that we’ve had in Israel and Canada and really push it west into Europe and then into the U.S. We have all the regulatory approval we need in Canada and the United States. Success in the U.S. is unlike success anywhere else.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Beyond Oil at https://www.beyondoil.co/.

CSE Performance

2024 Year-End Rewind

January Highlights

To wrap up an incredible year, we’re sharing our favourite highlights from each month. For our first post, we’re looking all the way back to January, when Richard Carleton, CEO of the CSE, shared an important message on our blog, the CSE team attended a number of renowned events, and we released our first podcast of the year.

The “Senior” Exchange and Other Capital Market Myths Blog

In today’s challenging market, when market participants need a clear understanding of available choices, inaccurate storytelling sows unnecessary confusion.

As we entered 2024, Richard Carleton shared a special blog post, “The ‘Senior’ Exchange and Other Capital Market Myths,” to help bring clarity and dispel myths surrounding Canadian stock exchanges.

The blog post debunks “senior” exchanges, provides insight into securities laws and investing in CSE issuers, and highlights the unique qualities that set the CSE apart.

Read Now: The “Senior” Exchange and Other Capital Market Myths

VRIC 2024

On January 21-22, the Vancouver Resource Investment Conference (VRIC), presented by Jay Martin, President and CEO of Cambridge House International, made its exciting return.

The CSE was pleased to connect with friends old and new in the mining and exploration space at this action-packed event, filled with keynotes from over 100 expert speakers, a tradeshow and exhibition, extensive networking sessions, and more.

The renowned event also served as a platform for sharing our unique expertise via two CSE-hosted panels, moderated by the CSE’s Anna Serin, Director of Listings Development for Western Canada and U.S. & Vancouver Branch Lead.

The first panel, “Beyond Borders: Navigating Cross-Border Capital and Liquidity Opportunities in Resource Companies,” featured the CSE’s Richard Carleton, CEO, and Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group.

The second panel, “Powering Tomorrow: Taking Stock of Global Lithium Supply in the Energy Revolution,” featured Jason Barnard, President and CEO of Foremost Clean Energy (CSE:FAT), and Scott Eldridge, CEO of United Lithium (CSE:ULTH).

Several CSE listed issuers also attended the event, including:

The CSE’s Renowned Mining Over Canada Reception

Back by popular demand, the CSE’s annual post-VRIC Mining Over Canada Reception was even bigger and better than ever.

Held at the prestigious Vancouver Club, the Canadiana-themed networking event brought together CSE listed issuers and members of the capital markets and mining communities for an evening filled with great live music, conversation, and outstanding food and drinks. 

The event was a resounding success thanks to our generous event sponsors, MNP, Odyssey Trust Company, Haywood Securities, Morton Law LLP, and Grove Corporate Services.

We hope you enjoy these photo highlights.

View the Album: Mining Over Canada 2024

The JSE 19th Regional Investments & Capital Market Conference

The CSE team enjoyed a productive break from the winter weather at the JSE 19th Regional Investments & Capital Market Conference on January 23–25 at Jamaica Pegasus Hotel in Kingston, Jamaica. 

We were pleased to sponsor this three-day premier event, hosted by the Jamaica Stock Exchange, which brought together financial services industry players from around the world to examine and strategize on the sector’s most pressing topics and global trends.

The CSE’s Rob Cook, Senior Vice President of Market Development, enjoyed catching up with entrepreneurs, members of the capital markets, and our friends at the Jamaica Stock Exchange during this wonderful event.

Gwen Preston on The Exchange for Entrepreneurs Podcast

The Exchange for Entrepreneurs Podcast returned for a brand-new season this January.

In the inaugural episode, the CSE’s Anna Serin served as host for a special interview with Gwen Preston, Newsletter Writer and Mining News Blogger at Resource Maven, to discuss the mineral exploration and investment space.

Gwen Preston shared insights on what happened in the resources market in 2023; factors shaping current trends in the mining and exploration sector, including rate hikes, competition for speculative capital, and the impact of electrification; and her predictions for gold, uranium, and more.

Watch Now: Gwen Preston on Resource Trends for 2024

February Highlights

Despite being the shortest month of the year, we launched the 2024 Mining Issue of Canadian Securities Exchange Magazine, attended exciting events, had our CSE-hosted VRIC panels featured on VRIC Media, and released two episodes of The Exchange for Entrepreneurs Podcast, all this past February.

Canadian Securities Exchange Magazine: The Mining Issue

To gear up for PDAC in March, we launched the 2024 Mining Edition of Canadian Securities Exchange Magazine.

This issue offers insight into five CSE listed mining companies racing to unlock economic opportunities across North America as green becomes the new gold.

The CSE listed companies featured in this edition include:

Read Now: Canadian Securities Exchange Magazine: The Mining Issue

The MicroCap Conference

We had an incredible time connecting with entrepreneurs and capital markets professionals at the Microcap Conference at the Caesars Atlantic City Hotel & Casino in New Jersey on January 30-February 1, 2024. 

This three-day conference provided attendees with extensive networking activities, expert panel discussions around topics critical to the microcap community, and company presentations, along with an entertaining casino experience that made the most of the venue.

It was great to see all the CSE listed issuers in attendance at this incredible event put together by DealFlow Events!

Mines and Money Miami

On February 22-23, 2024, the CSE travelled to vibrant downtown Miami, Florida to attend Mines and Money Miami.

We enjoyed connecting with friends and colleagues in the North and Latin American mining finance ecosystem over two days of programming covering today’s most pressing topics, including junior mining companies’ role in securing critical mineral supply chains for the energy transition and the impact of legislation. 

Several CSE listed issuers also attended the event, including:

VRIC 2024’s CSE-Hosted Panel Replays

At VRIC 2024, we were proud to host two panels, which were moderated by the CSE’s Anna Serin, Director of Listings Development for Western Canada and U.S. & Vancouver Branch Lead. 

The first panel, “Beyond Borders: Navigating Cross-Border Capital and Liquidity Opportunities in Resource Companies,” featured the CSE’s Richard Carleton, CEO, and Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group.

Catch the replay on VRIC Media’s YouTube for insights into opportunities for raising capital beyond our borders, how the CSE works with the OTC to help Canadian companies access private placement capital in the U.S., and other considerations, including DTC eligibility, fungibility, and more.

Watch Now: Beyond Borders: Navigating Cross-Border Capital and Liquidity Opportunities in Resource Companies

The second panel, “Powering Tomorrow: Taking Stock of Global Lithium Supply in the Energy Revolution,” featured Jason Barnard, President and CEO of Foremost Clean Energy (CSE:FAT), and Scott Eldridge, CEO of United Lithium (CSE:ULTH).

Tune in to the replay on VRIC Media for an in-depth discussion on the interplay between lithium and electrification, the factors impacting lithium supply and demand, and shifting to domestic supply and processing in North America and Europe.

Watch Now: Powering Tomorrow: Taking Stock of Global Lithium Supply in the Energy Revolution

Jason Barnard and Scott Eldridge on The Exchange for Entrepreneurs Podcast

Jason Barnard, President and CEO of Foremost Clean Energy (CSE:FAT), and Scott Eldridge, President and CEO of United Lithium (CSE:ULTH), joined Anna Serin once again for this year’s second episode of The Exchange for Entrepreneurs Podcast.

Jason Barnard and Scott Eldridge discussed all things lithium, including factors impacting the electric vehicle market; global jurisdictions for mining and processing, including China’s involvement; the American Inflation Reduction Act and EU Critical Raw Materials Act; challenges with lithium extraction; and upcoming outlook.

Watch Now: Jason Barnard & Scott Eldridge on All Things Lithium | The CSE Podcast E2-S4

Thomas Caldwell’s 2024 Outlook on The Exchange for Entrepreneurs Podcast

Thomas S. Caldwell, Chairman of Caldwell Securities, joined us for a special episode of The Exchange for Entrepreneurs Podcast, where he shared his annual financial outlook for 2024, including predictions on key factors such as interest rates and equity markets, reasons for investor optimism, insight into the “special case” of Canada, and a snapshot of tech, energy, and more.

Watch Now: Thomas S. Caldwell’s Financial Outlook for 2024 | The CSE Podcast E3-S4

March Highlights

Back in March, we returned to PDAC for one of its best editions yet, held our International Women’s Day Market Open, and travelled across the United States for a number of fantastic events.

PDAC 2024

This year’s PDAC was one of the best yet. From posh parties to connecting with mining and capital markets leaders from all over the world, the CSE team had an amazing time taking in the full conference experience and engaging in all things mining and exploration. 

By the numbers, we had more CSE listed companies exhibiting at the Investors Exchange than ever before; attendance and engagement at our events was at an all-time high; and the continued popularity of our conference-related content reflects our ongoing commitment to showcasing the entrepreneurial spirit that permeates throughout the Exchange. 

Additionally, our role as an official media partner enabled us to distribute the Mining Issue of Canadian Securities Exchange Magazine to our many booth visitors and to all convention attendees.

We look forward to returning again next year!

Read Now: Looking Back on a Successful PDAC 2024

The CSE’s PDAC Investor Luncheon

Our highly-anticipated CSE Investor Luncheon brought together various members of the investment, capital markets, and mineral exploration communities for a thrilling afternoon filled with company presentations, a special panel, and networking. 

The CSE’s Rob Cook, Senior Vice President of Market Development, emceed the pitch presentations, which featured several CSE listed issuers, including:

The presentations were followed by a special discussion, “Fact-and-Fiction – Short Selling in the Capital Markets,” with panelists Terry Lynch, Founder of Save Canadian Mining, and the CSE’s Richard Carleton, CEO.

We couldn’t have had such a successful luncheon without our sponsors, Computershare, DealMaker, MNP, Grove Corporate Services, Issuer Direct, ACCESSWIRE, Marrelli Trust Company Limited, Marrelli Support Services, DSA Corporate Services, Newsfile, Outlier Marketing, QuoteMedia, Independent Trading Group (ITG), and W.D. Latimer Co. Limited.

View The Album: CSE’s Annual PDAC Investor Luncheon 2024

Ringing the Bell for Gender Equality

The CSE was proud to participate in the Ring the Bell for Gender Equality 2024 initiative this International Women’s Day by hosting a special market open.

We welcomed delegates from Room Women’s Network and Caldwell Securities to ring in the market to promote gender equality and celebrate the power of women in business.

Watch Now: Ringing the Bell for Gender Equality at the CSE

The Capital Links at THE PLAYERS Investor Event

The Capital Links at THE PLAYERS Investor Event, hosted by Investor.Events, in Jacksonville, Florida was one “fore” the books. The CSE was proud to sponsor and attend this action-packed event on March 15-17.

Investors, finance professionals, funds and family offices, public issuers, and other members of the investment community came together for a full day of one-on-one meetings, followed by an exclusive networking experience at a special VIP Suite on Championship Sunday for THE PLAYERS Championship, “the PGA Players 5th Major,” at TPC Sawgrass.

Going Public and Raising Capital in Canada (Miami)

We were excited to return to the beautiful, sun-soaked Miami beachfront on March 18 for our Going Public and Raising Capital in Canada event, co-hosted by our event partner, Corporate Counsel LLP.

Richard Carleton and Michael Bluestein, Founding Partner of Corporate Counsel, gave a series of expert presentations exploring topics surrounding opportunities and strategies for successfully entering the public markets in Canada, followed by a networking reception.

The 36th Annual ROTH Conference

On March 17-19, the 36th Annual ROTH Conference, hosted by ROTH Capital Partners, returned at the Ritz-Carlton, Laguna Niguel in sunny Dana Point, California, and the CSE was proud to sponsor this invite-only event.

This exclusive event provided attendees with the renowned ROTH Conference experience and offered unique opportunities to meet with and learn from hundreds of private and public companies across a variety of sectors, including technology and media, sustainability and industrial growth, AgTech, energy, metals and mining, healthcare, and more. 

The CSE’s Anna Serin, Director of Listings Development for Western Canada and U.S. & Vancouver Branch Lead, presented on the “Benefits and Paths to Pursuing a Canada/U.S. Dual Listing” panel, which provided insights into the benefits and challenges of listing first in Canada, the differences between the U.S. and Canadian markets, and the process for pursuing a dual listing on NASDAQ, NYSE, or Cboe.

April Highlights

We’re continuing our rewind with our April event circuit, which took us to exciting locales across Canada and the U.S. to connect with colleagues from various industries.

Benzinga Cannabis Capital Conference – Spring Edition

Back in April, we had a great time soaking up the sun in Hollywood, Florida at the spring edition of the renowned Benzinga Cannabis Capital Conference

The schedule was packed with engaging content that provided a deep dive into all things cannabis, along with plenty of opportunities to catch up with new and familiar faces.

One of our favourite moments was hosting a sponsored cabana with ATACH at the Diplomat Beach Resort. Conversations were buzzing as we connected with our peers in the cannabis space over great food, refreshing drinks, and beautiful poolside scenery.

STANY’s 88th Annual Conference

We made our way to New York City for the 88th edition of STANY’s Annual Conference.

Along with engaging in fascinating conversations and exploring topical subject matter, including the impact of AI, sourcing liquidity in today’s markets, and the future of retail trading, the CSE also had a chance to share our insights at the “Navigating Canadian Markets” panel.

During this panel, the CSE’s Richard Carleton, CEO, joined Rizwan Awan, President of Equities Trading and Head of TMX Markets, Products & Services at TMX Group, and moderator, Shelley Eleby, Managing Director and Head of Marketing Electronic Trading at BMO Capital Markets, to dive into this important topic.

The 2024 KEG Conference & Trade Show

Our mining event circuit continued with the 2024 KEG Conference & Trade Show in Kamloops, BC, hosted by Kamloops Exploration Group.

We were proud to sponsor the event, including a special gold panning class with the famous Yukon Dan, and to connect with the mining and investment communities over an action-packed two days.

Planet MicroCap Showcase: VEGAS 2024

It was a pleasure to wrap up our April event circuit at the famed Paris Las Vegas Hotel & Casino for the Planet MicroCap Showcase: VEGAS 2024. 

Our team enjoyed connecting with the microcap community, taking in the always-entertaining thrills Vegas has to offer, and participating in insightful discussions. Plus, it was great to catch a presentation from CSE listed issuer, Foremost Clean Energy (CSE:FAT). 

We were proud to be a sponsor of the event and to share insights into how microcap companies can navigate the capital markets journey at the panel, “MicroCap Alternatives for Reducing Costs, Raising Capital, and Managing Liquidity in 2024,” where the CSE’s Anna Serin answered questions from moderator, Shelly Kraft from Planet MicroCap, alongside fellow panelists, Joe Alagna, Chairman & CEO at Joseph Gunnar & Co.; Joseph Oltmanns, Senior Vice President of Corporate Services at OTC Markets Group; Jason Bishara, Financial Practice Leader at NSI Insurance Group; and Shawn Severson, CEO & Co-Founder at Water Tower Research.

Watch Now: PANEL: MicroCap Alternatives for Reducing Costs, Raising Capital, and Managing Liquidity in 2024

May Highlights

May 2024 was a historic month for the CSE: our 20th anniversary as an exchange! We commemorated this major milestone with special market opens and celebrations plus attended a key mining finance event.

Celebrating 20 Years as an Exchange

This year has been monumental for the Canadian Securities Exchange, as we’re celebrating our 20th anniversary as an exchange.

We published a special press release and an anniversary page on our website to commemorate this major milestone and look back on the past 20 years, starting from our origins in 2004 when the CSE was the first exchange to be recognized in Ontario in more than 80 years.

In the press release, the CSE’s Richard Carleton, CEO, shared his personal reflections on our journey, including what sets us apart, our team’s dedication, and the challenges we’ve faced along the way. 

We also highlighted some of our biggest achievements to date as one of the world’s fastest-growing exchanges, including more than $26 billion in public capital raised on the CSE, the creation of the Senior Tier, the launch of a second trading book called CSE2, the evolution of our brand, and more. 

Our success has fuelled the success of our listed companies, investors, dealers, and traders for two decades, and we’ve only just begun.

Learn More: Celebrating 20 Years as an Exchange

20th Anniversary Market Open in Toronto

To kickstart our 20th anniversary festivities, we held a special Market Open at our Toronto headquarters on May 7, 2024. Richard Carleton was joined by CSE team members and supporters to ring the bell and share memories and insights from the Exchange.

Watch Now: The CSE Rings the Bell Celebrating 20 Years as a Stock Exchange

20th Anniversary Celebration in Vancouver

Continuing the festivities, we held a 20th Anniversary Celebration in Vancouver, BC, where we shared memories with our friends and colleagues over great food at the fantastic Five Sails Restaurant. It was a wonderful time celebrating with everyone!

View The Album: CSE’s 20th Anniversary Celebration – Vancouver

SME’s 9th Current Trends in Mining Finance Conference

Amidst the festivities, the CSE attended SME‘s 9th Current Trends in Mining Finance Conference in New York City.

Not only did the event dive insightfully into today’s most pressing topics in the mining finance space, but it also provided Richard Carleton with the chance to share his expertise on two noteworthy occasions. 

The first was the “Capital Markets: Trends in Listings, Trading, and Investor Engagement” panel, where Richard was joined by John Viglotti and Jason Paltrowitz from OTC Markets Group, Jonathon Deluce from Abitibi Metals (CSE:AMQ), and Doug Porter from Fathom Nickel (CSE:FNI).

The second was an at-event interview with Mark Bunting from Red Cloud TV, in which Richard discussed mining investment trends, market challenges and opportunities, and accessing the U.S. capital pool.

Watch Now: RCTV Interview at SME New York 2024

June Highlights

In this edition, we’re reminiscing on June, where we continued our 20th anniversary celebrations, released a new podcast episode, became part of the World Federation of Exchanges, and exhibited at an AgTech event.

20th Anniversary Celebration in Toronto

During the summer, our 20th anniversary celebrations were in full swing. Following our Vancouver party, we hosted another in-person gathering for our friends and colleagues in Toronto at The Fifth Social Club. We had a wonderful time reminiscing at this stylish venue.

View The Album: CSE’s 20th Anniversary Celebration – Toronto

Chris King on The Exchange for Entrepreneurs Podcast

In June, we welcomed Chris King, Senior Vice President, International Corporate Services at OTC Markets Group, to The Exchange for Entrepreneurs podcast, for an in-depth discussion about how to best leverage a Canadian listing through the facilities of the OTCQX and OTCQB markets.

Chris King’s insights included the benefits for CSE listed companies to quote on these markets, steps to prepare, the cost, reference clients, maximizing the quote, and more.

Watch Now: Chris King on Listing Local, Trading Global | The CSE Podcast E4-S4

The CSE Joins the World Federation of Exchanges

The CSE achieved another major milestone in June: our admittance into the World Federation of Exchanges (WFE)! 

Becoming a full member of the WFE, the flagship global industry association for regulated exchanges and clearing houses, comes with several benefits, including raising our international profile, enhancing the value of CSE issuers, and advancing our objective of facilitating global access to trading on the Exchange. 

To receive WFE membership, applicants need to demonstrate that they play a significant role in the financial markets of their country of origin and are serving a public good, among other requirements.
Thanks to the WFE leadership for approving our application, as well as its colleagues from the Johannesburg Stock Exchange, the Warsaw Stock Exchange, and the B3 (Brazil Stock Exchange and Over-the-Counter Market), who conducted a detailed review of the application.

Read Now: Canadian Securities Exchange Receives Membership in the World Federation of Exchanges

Canada’s Farm Show

We capped off the month by returning to Canada’s Farm Show in Regina, Saskatchewan, on June 18-20, 2024.

As always, Viterra put on a great event that offered a deep and engaging dive into all things AgTech and the future of farming. It was fantastic to see such a large crowd of attendees from Canada and around the world, and it was a pleasure to welcome so many visitors to our booth at the Viterra International Trade Centre.

July Highlights

In this recap, we’re rewinding to July, an exciting month where we released the Cannabis Issue of our magazine, enjoyed our annual Calgary Stampede festivities, played golf at The CSE Open event, and continued our 20th anniversary celebrations in Vancouver.

Canadian Securities Exchange Magazine: The Cannabis Issue

In June, we launched the latest Cannabis Issue of Canadian Securities Exchange Magazine. This edition spotlights five cannabis companies gearing up to make the most of the coming opportunities with important regulatory change on the horizon.

The CSE listed companies featured in this issue include:

Read Now: Canadian Securities Exchange Magazine: The Cannabis Issue

20th Anniversary Celebrations at the Calgary Stampede

We were delighted to don our cowboy hats once again at the world-famous Calgary Stampede this July.

Maintaining a long-running tradition, the CSE kicked off the Stampede with our annual Stampede Breakfast, complete with a steady supply of pancakes, country music, and lively discussions with friends and team members.

And to commemorate our 20th anniversary year, we filmed a short video starring the CSE’s Richard Carleton, CEO, who shared a brief history of the Exchange and highlighted the important role Western Canadian communities continue to play in supporting publicly funded entrepreneurs on the CSE.

Watch Now: The CSE Celebrates 20 Years at the Calgary Stampede

The CSE Open 2024 – Toronto

This July, we picked up our clubs and took to the great outdoors for our annual CSE Open at the Royal Ontario Golf Club in Toronto! 

Congratulations to Taylor Howie and Adrian Capobianco for winning this year’s event. Shout out to our partners and sponsors for helping to make this event a success and for raising funds in support of Centennial Infant and Child Centre Foundation and Lions Foundation of Canada Dog Guides. 

See you out on the green again next year!

View The Album: The CSE Open 2024 – Toronto

CSE 20th Anniversary Special Market Open in Vancouver

To further spotlight both our 20th anniversary and the integral role of Western Canada in the Exchange’s history, we held a special celebratory Market Open in Vancouver on July 2, 2024. Richard Carleton was joined by Anna Serin, Alexandra Cosgrove, and other members of the CSE Vancouver team to open the day’s trading session.

Watch Now: The CSE Rings the Vancouver Bell Celebrating 20 Years as a Stock Exchange

August Highlights

In August, we had the pleasure of co-hosting an exclusive summer mixer, attending and golfing at an annual conference, presenting at a critical minerals summit, and reflecting on a summer intern’s time with the Exchange. 

VanCap Rising Leaders Summer Mixer

The CSE teamed up with DuMoulin Black, MNP, and Market One to host our exclusive VanCap Rising Leaders Summer Mixer. 

We kicked off the event with a fireside chat featuring the legendary Terry Salman, one of Canada’s most dedicated philanthropists and a renowned figure in mining finance, who shared insights from his rich and varied 35-year career, followed by an afternoon of networking with peers in the capital markets over summery drinks and delicious snacks. 

VanCap Rising Leaders is a program designed for professionals in the capital markets to build their centre of influence, create deal-making opportunities, network, and develop personally. 

If you’re interested in becoming a member of the VanCap Rising Leaders program, please contact [email protected] to gain access to these exclusive events.

CSTA Annual Conference 2024

Nothing quite says summer at the CSE like a golf tournament. At the CSTA 2024 Annual Conference in Québec City, we had the chance to tee up while enjoying an engaging conference experience. 

Hosted by the Canadian Security Traders Association, this conference brought the capital markets community together for insightful presentations, networking opportunities, innovative exhibits, and enjoyable offsite events.

CMI Summit III

Keeping the momentum going with our August event schedule, we were pleased to sponsor and attend the Critical Minerals Institute’s CMI Summit III at the prestigious National Club in Toronto. 

It was great catching up with CSE listed mining issuers in attendance and our peers in the critical minerals space, including industry frontrunners, investors, and government representatives. Plus, the CSE’s Richard Carleton, CEO, was presented on behalf of the Exchange.

Interview With a Summer CSE Intern Alum

To help future leaders in the capital markets get first-hand experience, the CSE proudly welcomes interns and co-op students to the Exchange, and we’ve seen many alums go on to have thriving careers.

This past summer, one of our interns, Ethan, sat down with us to reflect on his experience with the CSE before heading back to university. Enjoy this brief interview to learn what a typical intern’s experience is like with us.

What key skills or knowledge did you develop during your internship, and how do you think they will benefit your future career?

During my time at the CSE, I picked up many useful skills and learned a lot about how capital markets work. One of the biggest things I improved on was my ability to make smart decisions based on data analysis and market research. These skills, along with the experiences I had, will most definitely help me tackle bigger and more challenging projects in the future. From this term, I managed to develop a greater understanding of the industry and feel more confident in my ability to think critically and strategically about market trends and challenges.

Can you share a specific project or task that challenged you the most, and how you overcame it?

I had the chance to work on a lot of fascinating projects, but the toughest one was doing a market analysis of the Borsa Istanbul exchange to see if the Turkish mining sector was worth expanding into. For this, I had to analyze the performance of the BIST 100 and BIST Mining Indices, study the Turkish mining industry, and figure out how Turkey’s economy and politics would affect the market. Although this was my first time completing such tasks, I managed to successfully form an end of term presentation that I would later present.

How has your understanding of the stock exchange industry evolved since you started this internship?

Before this internship, I had a basic understanding of stock exchanges. I knew why companies go public and how investors make money, but I didn’t really get how stock exchanges worked behind the scenes. After my time at the CSE, especially thanks to all the lunch-and-learn sessions, I learned how exchanges make money, the rules companies need to follow, and the whole process of going public.

What advice would you offer future interns?

My biggest advice to future interns would be to always look for chances to learn from everyone you meet. Whether you’re chatting with colleagues or just bumping into people in the elevator, you can pick up new insights everywhere. The faster you embrace that mindset, the more you’ll learn.

Any memorable moments or highlights from your time with the Listings Development Group?

One of the best moments for me was helping set up and attend the CSE’s 20th anniversary party. It was awesome to be part of something so meaningful for the exchange. I got to meet a bunch of CEOs from companies listed on the exchange and heard some great advice from tenured capital market professionals. It was definitely an unforgettable experience.

September Highlights

September was filled with travel across North America. Some of the highlights included the CSE team heading back to Beaver Creek, Colorado for the renowned Precious Metals Summit; dropping anchor in beautiful Halifax, Nova Scotia to host another segment of our successful Going Public and Raising Capital in Canada series; swinging over to scenic West Vancouver to enjoy some picture perfect putting, and more. 

Precious Metals Summit Beaver Creek

There was more than gold, silver and platinum on the docket as the CSE team travelled to beautiful Beaver Creek, Colorado on September 10-13 for the renowned Precious Metals Summit. 

This exclusive independent investment conference, brought together explorers, developers, and emerging producers of gold, silver, and platinum group metals alongside investors, and executives from senior precious metals companies.

It was great to connect and spend time with the mining and investment communities and exhibiting CSE listed issuers:

Plus, you can’t beat the breathtaking Colorado mountain views and the legendary culinary skills of the CSE team. Until next year!

View The Album: Precious Metals Summit – Beaver Creek 2024

Going Public and Raising Capital in Canada: Halifax Event

In mid-September, Going Public and Raising Capital in Canada was back for the second time this year, and the CSE was excited to host this edition in Halifax, Nova Scotia.

The CSE’s Richard Carleton, CEO, and Scott Pritchard, Senior Advisor of Listings Development for Québec & Eastern Canada, had a wonderful time presenting to the capital markets community and catching up with friends old and new at the Muir Hotel. 

It was also a pleasure to welcome expert speakers on Canada’s public markets:

Thanks again to our sponsors, MNP, Computershare, Lebeuf Legal, and Laurel Hill Advisory Group. We look forward to the next iteration of our Going Public and Raising Capital in Canada events!

The CSE Open 2024 Vancouver

We enjoyed closing out summer at The CSE Open 2024 Vancouver on September 19 at the Gleneagles Golf Course in West Vancouver. 

It was a fantastic day of golf with friends and colleagues. Not only did we get to work on our swings and enjoy the stunning West Vancouver views, but this event also raised money in support of Family Services of the North Shore. The CSE Open Vancouver edition was made possible by generous supporters including premier sponsor, DuMoulin Black; putting contest sponsor, Investor.Events; and event sponsors, Torrey Hills Capital, Endeavor Trust, Haywood Securities, MNP, Purves Redmond Limited, Market One Media, Dog and Pony Studios, and CEO.CA.

STA’s 91st Annual Market Structure Conference

The Security Traders Association’s Annual Market Structure Conference was back for its 91st edition this September, and the CSE was proud to sponsor and attend this classic STA event.

Set in sunny Orlando, Florida, this year’s conference explored typical and atypical forces impacting our market structure and the need for proactive adaptation under the theme of “Shifting the Landscape.”

We also enjoyed the many networking opportunities, including poolside sessions, a cabana event, and a golf tournament.

ArcStone-Kingswood Growth Summit 2024

To cap off a productive September, we attended and sponsored the ArcStone-Kingswood Growth Summit in Toronto.

This premier growth conference offered growing companies a space to explore listings on prominent U.S. and Canadian exchanges while providing a platform to discuss potential opportunities with investors. Plus, this year was also packed with panel discussions and presentations from companies across a range of sectors, including metals and mining, AI, and wellness.

October Highlights

In this edition, we’re looking back on October when we biked for a good cause, rang the bell for financial literacy, welcomed a mining delegation from Saudi Arabia, and attended several key industry events in Toronto, New York City and Chicago. 

Bay Street Rides FAR

Members of the CSE team had a fantastic time participating at Bay Street Rides FAR 2024, part of the Rides FAR initiative, in downtown Toronto on October 5.

This fun and impactful day of biking and walking was for an important cause: raising money needed to further autism research and increase awareness. With the generous help of our community, we were able to raise $3,500 for Autism Science Foundation Canada. 

We’re appreciative of everyone who sponsored our team and to Independent Trading Group (ITG), Caldwell Securities, and Purves Redmond Limited for their support.

View The Album: Bay Street Rides FAR 2024

The CSE Rings the Bell for Financial Literacy

On October 7, 2024, special guest Elizabeth Naumovski, host of EMPOWERED, joined the CSE to celebrate World Investor Week and “Ring the Bell for Financial Literacy,” in association with the World Federation of Exchanges and IOSCO‘s campaign to raise awareness about the importance of investor education and protection.

View The Album: CSE Rings the Bell for Financial Literacy – October 7th, 2024

Red Cloud Fall Mining Showcase

As always, we had a fantastic time at the Red Cloud Fall Mining Showcase 2024, presented in partnership with PearTree, at the Sheraton in Toronto’s financial district.

In addition to sponsoring this dynamic event, we enjoyed connecting with members of the mining and investment communities, as well as catching a presentation by CSE listed issuer, Fathom Nickel (CSE:FNI).

The Exchange Welcomes Mining Delegation From Saudi Arabia

The CSE had the pleasure of hosting a prestigious mining delegation from the Kingdom of Saudi Arabia earlier this month, a special occasion which culminated in a bell-ringing ceremony at our market centre in Toronto.

This event allowed Canadian mining professionals to connect with Saudi leaders and was aligned with the country’s economic transformation plan, Vision 2030, with mining as a key pillar of industrial growth.

Watch Now: The Exchange Welcomes Mining Delegation From Saudi Arabia

Global Markets Forum

We were pleased to sponsor and attend the Global Markets Forum, in partnership with Aquis Stock Exchange, First Sentinel, and OTC Markets Group, at the OTCQX Market Center in New York City.

This premier event featured presentations from leading Canadian, U.S., and U.K. public growth companies, insights from industry experts, panel discussions with key market participants, and one-on-one meetings with C-suite executives.

Plus, the following CSE listed issuers delivered presentations:

Benzinga Cannabis Capital Conference

It was great to be back at the Benzinga Cannabis Capital Conference for its fall edition in Chicago, Illinois.

We caught up with our friends and colleagues in the cannabis and capital markets communities, and several CSE listed companies had the chance to take the spotlight, including:

November Highlights

November was a month full of milestone moments, including the launch of the CleanTech Issue of our magazine, the return of the Summit on Responsible Investment, our first-ever WFE General Assembly and Annual Meeting, and more.

Canadian Securities Exchange Magazine: The CleanTech Issue

This November, we were proud to launch the CleanTech Issue of Canadian Securities Exchange Magazine. 

In this issue, we feature six CleanTech companies whose solutions are proving what’s possible in the quest for improved wellbeing of people and planet: 

Plus, we’ve included exclusive 20th anniversary interviews with Richard Carleton, CEO of the CSE, and senior leaders at the Exchange.

Read Now: Canadian Securities Exchange Magazine: The CleanTech Issue

Summit on Responsible Investment Video Series

After a successful in-person debut in 2023, the CSE was pleased to launch the 2024 installment of the Summit on Responsible Investment (SoRI) as an online series, which dives into the intersection of investing and sustainability. 

Tune in to learn about the future of sustainable mining, botanical synthesis technology, ESG from a mining lens, fintech and sustainable investing, and many more fascinating topics.

Watch Now: Summit on Responsible Investment 2024

WFE General Assembly and Annual Meeting

We were honoured to have CSE’s Richard Carleton and Tracey Stern represent the CSE in Kuala Lumpur, Malaysia for the 63rd General Assembly and Annual Meeting of the World Federation of Exchanges, hosted by Bursa Malaysia.

It was a great milestone for the Exchange to participate and a genuine pleasure to join fellow exchange executives and industry leaders from across the globe to discuss important trends and developments impacting the public capital markets. 

Richard also participated in the panel discussion, “Beyond the Monopoly Myth: Rethinking Competition in Financial Markets,” alongside industry leaders from Ghana, Saudi Arabia, and Mexico.

View The Album: WFE General Assembly and Annual Meeting

Richard Carleton Interviewed by Planet MicroCap

At the Planet MicroCap Showcase: VANCOUVER 2024, in association with Smallcap Discoveries, Robert Kraft, CEO and Host of Planet MicroCap, interviewed Richard Carleton for the virtual keynote, “Utilizing Canada to Access North American & Global Pools of Capital.” 

During this exclusive interview, Richard discussed the state of the markets for microcap companies, public markets versus private equity, active sectors on the Exchange, and the strategy of utilizing Canadian markets to access North American and global pools of capital and how the CSE is uniquely positioned in this space.

Watch Now: KEYNOTE: Utilizing Canada to Access North American & Global Pools of Capital with Richard Carleton

December Highlights

As 2024 comes to a close, so does our year-end rewind. Thank you for not only following our journey through the months but for following our journey as an exchange over the past 20 years. 

While we look ahead to what will surely be an eventful 2025, join us in looking back at one final month: December. Earlier this month, we attended MJBizCon 2024, headed to the U.K. for key mining events, and released our annual year-end interview with our CEO, Richard Carleton.

Please enjoy this final installment of our monthly highlights and from everyone here at the CSE, we wish you and your loved ones Happy Holidays!

MJBizCon 2024

It was great to be back in Las Vegas for the renowned cannabis event, MJBizCon.

Hosted by MJBizDaily, this event brought together thousands of global cannabis executives and featured notable speakers, like Carmelo Anthony, who shared insights and perspectives on the cannabis industry. 

This inspirational-filled conference featured important topics such as understanding the impact of AI on consumers, empowering women entrepreneurs, and navigating the regulatory landscape.

The CSE’s Dimitri Giller, Director of Listed Company Services, also enjoyed connecting with capital markets and cannabis community members alike.

Meeting the Mining Community in the United Kingdom

As part of our ongoing efforts to improve international access to the Exchange, the CSE’s James Black, Vice President of Listings Development, and Phillip Shum, Director of Listings Development, headed to London, U.K. for two key mining-related events. 

The first was the International Metals Symposium, presented by The Northern Miner, an event the CSE also sponsored. Here, we were able to engage in fascinating discussions surrounding mining and investment, including topics such as ESG and decarbonization.

Closely following the International Metals Symposium, we headed to Mines and Money @ Resourcing Tomorrow, one of Europe’s largest mining investment events. It was great connecting with the global mining and capital markets communities.

Plus, there were many CSE listed issuers in attendance:

Overall, our trip to the U.K. proved valuable, and we are looking forward to future travels to the region.

Saskatchewan Geological Open House

In December, our conference circuit also included events closer to home, such as the Saskatchewan Geological Open House in Saskatoon. 

As the premier annual event for mining and mineral exploration companies active in the province, we enjoyed drilling down into insightful technical sessions as well as connecting with mining and mineral exploration professionals at this year’s show.

Richard Carleton’s Year-End 2024 Interview 

This year has been an eventful one for the Exchange. We celebrated our 20th anniversary as an exchange, undertook policy and other adjustments to business lines, and joined an important global organization for exchanges, among other significant milestones. 

With 2025 just around the corner, the CSE’s Richard Carleton, CEO, shares his thoughts on Canadian market performance during 2024, the outlook for the year ahead, and previews important new initiatives that issuers and investors will surely want to take note of.

Read Now: Richard Carleton’s Year-End 2024 Interview

Magazine

Canadian Securities Exchange Magazine: The CleanTech Issue – Now Live!

Welcome to the latest issue of Canadian Securities Exchange Magazine, your source for in-depth stories of entrepreneurs from a wealth of different industries.

Of the many things entrepreneurs are good at, seeing solutions where others see crises is one of them. From clean energy and efficient water systems to natural fertilizers and carbon removal, CleanTech entrepreneurs are actively seeking solutions to the defining challenges of our times, and the capital markets are going play a pivotal role in catalyzing innovation to address these truly global issues.

In this issue of Canadian Securities Exchange Magazine, we feature six CleanTech companies whose solutions are proving what’s possible in the quest for improved wellbeing of people and planet. We also feature exclusive 20th anniversary interviews with Richard Carleton, CEO, and senior leaders at the CSE.

The companies featured in this issue are: 

Check out the CleanTech Issue of Canadian Securities Exchange Magazine here:

CSE Issuer Stories, Magazine

Innovative delivery technology designed to change the nature of cannabinoid consumption

StickIt (CSE:STKT) has carved out a niche for itself in the cannabis market, despite not exactly being a cannabis company.

Listed on the CSE since October 2023, StickIt develops innovative consumer products resembling toothpicks, as well as straws and spoons, which can be infused with different types of cannabinoids, such as THC and HHC.

StickIt operates primarily through a B2B model that allows the company to leverage its patented technologies by relying on partners to handle mass manufacturing. This facilitates market penetration and scalability across multiple regions without requiring large capital outlays to establish production facilities.

The approach sees StickIt license its delivery technologies to entities who produce and distribute the infused items under the StickIt brand name. And unlike some traditional cannabis products, which vary significantly in dosage and quality, StickIt’s offerings provide a consistent and reliable user experience.

The company’s primary product, the Extra-C “cannabis stick,” resembles a toothpick that can be easily inserted into a pre-roll. The stick consists of cannabis extracts that burn at the same pace as the pre-roll does.

A product that uses a similar concept but in a completely different form factor is the StickIt SipIt straw. The idea here is to provide people the soothing effects of cannabinoids while they enjoy their favourite beverage.

Unveiling the straw in March of this year, StickIt Chief Executive Officer Eli Ben Haroosh said: “This development eradicates the hassle of traditional consumption methods, offering rapid, discreet and precise dosing without compromising taste or experience. It’s a win-win for both consumers and producers, opening doors to untapped markets and elevating the cannabis experience to unprecedented levels. We’re not just changing the way cannabis is consumed; we’re revolutionizing it.”

StickIt is clearly onto something, so there are other products coming to the lineup as well, including a hot drink shaker stick. 

Speaking to Canadian Securities Exchange Magazine, StickIt Chief Financial Officer Sophie Galper explains how these new products are intended for people who want to consume cannabinoids without the taste and smell of oil-based products.

“This is what’s unique about the straw. You want to have your juice or water or whatever you are consuming without it being mixed with the taste of cannabis oil,” explains Galper.

“The technology allows exactly this. It’s a delivery system. You’re sipping it but it’s only being activated in your stomach.”

To provide an even clearer idea, Galper draws an analogy with consuming sugar. “If it’s a warm drink, you feel the sweetness of the sugar. If it’s a very cold drink, the sugar is not dissolved, so you can consume sugar in your body without really tasting the sweetness.

“StickIt’s technology is essentially a delivery system that creates almost sand-like granules, and when you sip your drink it’s getting into your body without tasting like oil.”

One big plus is that StickIt-branded products come labelled with the precise dosage amount, so you know exactly what is entering your system.

But perhaps attention to detail should not be surprising, considering how the company views its position. “As much as StickIt is active in the cannabis market, it’s essentially a technology company, not a cannabis company,” Galper says.

And StickIt does indeed have considerable tech credentials behind it. The company’s founder, Dr. Asher Holzer, has decades of experience in starting and growing medical technology companies, including InspireMD, which is focused on the proprietary microNET stent platform technology for the treatment of complex vascular and coronary diseases.

StickIt is in the process of building joint venture partnerships in cannabis-friendly jurisdictions around the world, though Galper admits it hasn’t been completely smooth sailing so far.

“The business model involves licence agreements with local manufacturers in every country. Launching these agreements has taken longer than expected, as is always the case,” Galper explains.

“This is partially because there’s absolutely a shortage of people who want to fund this industry right now.”

Galper is referring to the elephant in the room here. For all of the hype and promise, the regulated cannabis industry has underperformed.

In Canada, in particular, the market has experienced saturation and regulatory hurdles that have made it difficult for businesses to thrive.

Nonetheless, StickIt is moving forward with strategic partnerships with licensees in multiple countries.

In 2023, StickIt entered into a licence and distribution agreement with Ripco Processing in Canada, authorizing Ripco to use StickIt’s raw materials in the manufacturing of products within the Canadian market. Ripco plans to focus on THC-infused sticks for the rapidly growing infused pre-roll segment.

Despite investors being cool toward cannabis investments at the time, StickIt went public on the CSE in October 2023 via a reverse takeover.

Funding was less of an issue for the group, having secured capital via two crowdfunding rounds. Plus, StickIt’s cash burn rate is “very low,” adds Galper.

Going public was a promise to the 600-odd crowdfunding participants and the CSE provided a liquidity venue for their shares.

“The public vehicle is a good platform to continue with M&A,” says Galper. “StickIt is very much oriented to M&A to integrate different technologies.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about StickIt Technologies at https://stickit-labs.com/.

CSE Issuer Stories, Magazine

Unique expertise and steady strategy have this cannabis company positioned to reach new markets

Greenway Greenhouse Cannabis (CSE:GWAY) entered Canada’s frenzied cannabis market not long after the country legalized recreational use in October 2018 but with a different game plan than most of its peers.

While the company was smaller than many licensed producer (LP) rivals, the agricultural lineage of its leadership team proved an important advantage after the industry’s initial excitement gave way to hard business realities. 

Greenway is still led by the two men who co-founded the company: Chief Executive Officer Jamie D’Alimonte and President Carl Mastronardi, both of whom co-chair the organization.

D’Alimonte is a third-generation farmer whose family focuses on tomatoes, peppers, cucumbers and strawberries, which have been on shelves across Canada and in major U.S. retailers since the 1950s. The Mastronardi name is known in North American agricultural circles for their family’s work in greenhouse growing, stretching back to the 1940s.

While the initial frenzy in financial markets for cannabis names led to billions of dollars of investment and the creation of dozens of LPs, the Greenway strategy was more modest by design.

“We wanted to approach it as an agricultural product from the onset and we started very small, with a one-acre facility as well as the nursery back in 2020,” says D’Alimonte.

“We received the certification for our growing facility in 2021 and our intention was to be a B2B wholesale supplier, selling one-kilogram packages to other brands or marketers who could decide whether to sell it as flower, pre-rolled joints or edibles.”

The approach called for learning the market and keeping costs low as the team found ways to leverage its agricultural expertise.

“Honestly, prior to the gold rush and all the hype and hysteria around Canada’s legalization, what brought us to this industry is that we saw a lot of people that we didn’t think were doing it efficiently and going about it from an agricultural standpoint,” D’Alimonte explains.

“There are all kinds of controls required to keep costs down from a plant nutritional perspective and to maintain high production standards. We saw a lot of things going on that we thought fell short of our knowledge base, so we got excited and saw potential for growth over time. We felt we could really do something.”

Thanks to those decades of experience, Greenway’s weighted average cash cost for finished goods inventory was $0.75 per gram at the end of December 2023, amongst the lowest in the Canadian market.

“Even in inflationary times, we have been able to keep costs down and quite level,” he says.

“Early on, and even recently, you’re seeing costs at some other LPs well over $1.50 to $2.00 per gram. That really is the difference with us, as well as production per plant, with some yielding upwards of 250 to 300 grams.”

Situated in Leamington, Ontario, Greenway’s facility is in one of the southernmost and sunniest points in Canada, affording a perfect climate for greenhouse production.

Greenway also captures heat from power generated on site with natural gas, storing the warmth from engines to redistribute when greenhouses need it at night. Meanwhile, the rockwool substrate it uses in place of soil allows nutrients to be preserved, meaning a pasteurization process can be employed so that water gets reused.

“We do not utilize any pesticides but instead rely on integrated pest management,” says D’Alimonte. “In other words, we have an entomological team and we bring in good bugs to eat the bad bugs.”

To control aphids and white flies, for example, the control team uses ladybugs and a type of wasp called Encarsia formosa. “Greenhouse growing in general is very safe for the environment,” D’Alimonte notes.

While the Greenway founders were correct that their approach was robust, the rollercoaster trajectory taken by the broader industry made the first few years a much rougher ride than hoped.

With the rapid entry of large producers, some with facilities 20 or 30 acres in size, oversupply of cannabis, much of it of mediocre quality, sent prices tumbling. 

Canadian cannabis wholesale prices fell more than 40% last year as companies continued to work through stubborn supply gluts.

The fallout, which coincided with slower legalization south of the border than anticipated, undermined share prices and led to many companies collapsing or consolidating. 

D’Alimonte and Mastronardi had been careful not to overreach but still saw profits squeezed by the weak pricing environment. “It really hurt our revenues and returns,” says the CEO.

Nevertheless, in the quarter ended December 31, 2023, Greenway reported the second-best revenue number in its history, up more than 33% over the same period a year earlier to $1,388,200. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at a modest loss of $252,395.

“We have definitely seen a rebound in the market in the last six to eight months,” says D’Alimonte. “There have been a lot of bankruptcies and a lot of facilities closing or downsizing, matching and becoming aligned. Since that’s been happening, we are seeing our revenue increase and the price per gram increase as well.”

Also helping returns is entry into the retail market, with the first shipment of product under the company’s own MillRite pre-roll brand taking place in March. Early sales put MillRite as the number four brand in its segment. The EPIC premium flower brand launched one month later. Both brands are available in Ontario, with Greenway already eyeing other provinces such as British Columbia, Manitoba and Saskatchewan.

MillRite is priced to attract price-conscious consumers, with Greenway’s low production cost enabling it to compete and still anticipate profitability on its sales.

In April, Greenway announced the receipt of CUMS-GAP and GACP certification, bringing with it the chance to ship internationally.

“Some current customers with export arms requested that certification, so we can export through existing customers or through new ones we are currently vetting,” says D’Alimonte.

“Export prices are much higher than we are getting in Canada, and some of our product has already been earmarked for Australia. And with the change in the market, we are being approached by many LPs who decided to pivot and focus on marketing rather than production. We are having discussions with lots of them.”

The timing of this new market dynamic is perfect, as growing facility expansion finished last year, bringing capacity to 167,000 square feet of cultivation space and 22,000 square feet for processing.

This enables annual capacity of 24,000 kilograms and carries with it the potential for a major increase in earnings.

“I envision us probably being fully planted within 12 to 18 months, and it could be even sooner if one or two of the new customers we are currently talking to come on board,” says D’Alimonte.

He acknowledges that it has not been an easy journey for shareholders, of which he is one, with insiders owning about 70% of the 131 million shares outstanding.

“We have been very conservative – lots of sweat equity,” says D’Alimonte. “We have been true to our goals; we didn’t get into processing or CPGs right at the start like our competitors. We gave ourselves time to prove to the public and our shareholders what makes us different, keeping costs down and growing a superior product. We see this industry as a marathon not a sprint, and Greenway is still gathering speed.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Greenway Greenhouse Cannabis at https://thecse.com/listings/greenway-greenhouse-cannabis-corporation/.

CSE Issuer Stories, Magazine

Positioned just right as beneficial new rules set to sweep U.S. cannabis industry

U.S. multi-state operator (MSO) Vext Science (CSE:VEXT) is looking forward to big federal and state catalysts that it and others in the cannabis sector have long been preparing for.

The vertically integrated cannabis company has established a significant footprint in its main markets of Arizona and Ohio. Vext is well known for state-of-the-art cultivation facilities, fully built-out manufacturing operations and dispensaries where consumers often choose its Vapen brand, one of the top-performing THC concentrate, edible and distillate cartridge brands in Arizona.

The company has made a big push into Ohio as that state prepares to transition from a medical cannabis market to an adult-use one. In early June, the state began accepting applications for dispensaries seeking to sell recreational cannabis.

This shift is anticipated to significantly reduce the illicit market and provide easier access for consumers who do not want to obtain a medical cannabis card.

Meanwhile, the U.S. Drug Enforcement Administration’s recent announcement about rescheduling cannabis from a Schedule I to a Schedule III drug will have beneficial tax implications for companies in the industry and could potentially lower costs for consumers.

Vext generated approximately US$4.4 million in net income after tax in the year ended December 31, 2023, and anticipates significant growth with the upcoming launch of the adult-use program in Ohio. The company will be well positioned with a Tier I cultivation facility, a manufacturing facility and four dispensaries in the state. It also sees potential for three additional adult-use licences based on proposed new dispensary caps in Ohio, which would give it the opportunity to operate a total of seven dispensaries in the state.

In a recent interview with Canadian Securities Exchange Magazine, Vext Chief Executive Officer Eric Offenberger discussed how strategic vision and a commitment to operational excellence position Vext to thrive in a market characterized by constant change, plus what the company’s plans are to capitalize on the opportunities that lie ahead.

Vext is a vertically integrated MSO with operations in Arizona and Ohio.  What sets the company apart from its peers?

One of the key differentiators is our cautious approach to growth. We identified states with vertical integration and a limited number of licences to make better and more sustainable returns. We’ve also been prudent with our capital and balance sheet structuring, always considering what growth we could support and what our shareholder base could support.

Our philosophy differed from others who expanded broadly; we focused on depth rather than breadth. We also entered the market later, going public in May 2019, which allowed us to learn from others’ experiences and avoid some of the pitfalls.

Your Q4 and full-year 2023 results show a slight decline in revenue from a year earlier but a notable increase in earnings before interest, taxes, depreciation and amortization (EBITDA). What were the key drivers behind this improved profitability?

The magnitude of the increase in EBITDA needs to be considered in context as it includes a bargain purchase price for our Ohio asset, which led to an increase in EBITDA. We’ve been funding Ohio from Arizona for a couple of years.

The cannabis industry, like any other, is affected by inflation impacting consumer spending. Until this year, Arizona was the primary operational state funding our Ohio expansion. Now, with Ohio becoming operational, we’re seeing results, and we expect to see both revenue and cash flow ramp up significantly as adult-use comes online through the second half of the year.

With Ohio’s adult-use market projected to reach US$4 billion by 2028, how is Vext preparing to capture market share there?

From day one we knew we wanted to be vertically integrated and to focus on a footprint that would enable us to capture incremental wholesale profit in the early years of the market, while scaling only to the level where we could fully supply our own dispensaries over the medium and longer terms. Being vertical and supply-demand matching within your own operations is key to long-term success in these markets. Additionally, Ohio’s structured limitations on storefronts and cultivation prevent oversaturation, making it an advantageous market for us.

Through acquisitions, we have assembled a portfolio that includes a Tier 1 cultivation facility, manufacturing operations and four dispensaries. The latest of those dispensary acquisitions closed in March 2024.

Ohio’s transition from a medical to an adult-use market is important given our exposure in the state. The potential customer base expands dramatically, presenting an intriguing opportunity. We’ve invested heavily in Ohio, using our Arizona assets and additional capital to fund this growth. We believe this positions us well to benefit from Ohio’s growing market.

The Arizona market is quite competitive. How is Vext positioning itself to maintain and potentially increase market share in that environment?

Arizona is experiencing an oversupply issue, with many cultivators entering the market and driving down prices. Inflation is also impacting consumers’ disposable income, leading to decreased spending.

We’re focusing on cost control and price discipline, ensuring efficiency in our operations. Despite the challenges, our vertically integrated model in Arizona helps us mitigate risks better than those heavily reliant on wholesale markets. While the market is down, we are only down about half as much. And this is a fantastic long-term market as supply and demand come into balance, as they always do in the long term. The population is expected to keep growing.

What strategies are you employing to handle these pressures?

We’re focusing on cost control, price discipline and inventory management. Basic business principles apply here, and we’ve been diligent about maintaining these even during better times. In Ohio, we anticipate a broader customer base, which will allow for growth in a more controlled market environment.

Can you comment on the innovative strategies Vext has implemented at the dispensary level?

We introduced “speed ” windows, similar to bank teller windows, allowing customers to quickly pick up online orders. This innovation improved customer traffic and transaction volume, outpacing state averages. It’s an example of how small changes can significantly impact operational efficiency and customer satisfaction.

As someone who has transitioned from COO to CEO and with your background in MSOs and manufacturing, what lessons have you learned about running a successful cannabis company?

My background in retail, distribution and manufacturing shaped my view of cannabis as a commodity like any other. Consumers seek value, convenience and consistency. Whether it’s milk, poultry or cannabis, the principles remain the same. Efficient operations and a deep understanding of consumer behaviour are critical for success.

Industries evolve and cannabis is no different. From my experiences in dairy and other commodities, I’ve learned that consumer expectations drive market dynamics. Understanding these expectations and adapting operations accordingly is crucial. Efficient growth, maintaining control over expansion and ensuring product quality are fundamental lessons that apply across industries.

President Biden’s administration is moving toward rescheduling cannabis from a Schedule I to a Schedule III drug. How do you foresee this impacting Vext Science’s operations and financial performance?

I think rescheduling cannabis as a Schedule III drug does a few things. It starts to change how people think about cannabis. If it becomes a Schedule III drug, it could lead more people back into the medical market, seeking pain relief or other benefits. It might become easier to prescribe and purchase, and it would have a different tax structure, potentially giving consumers more purchasing power.

Regarding banking, I’m not sure if it changes anything immediately. It might attract investors who have previously not focused on the sector, allowing them to view cannabis in a different light.

Socially, I’m unsure of the broader impacts, but I think it sets the stage for a more favourable environment. For a company like Vext, with a strong balance sheet and asset ownership, it creates a more attractive vehicle for future use, whether through acquisition or collaboration with like-minded companies.

How does your strategy for building the company ensure its resilience and value, particularly with the expected rescheduling of cannabis?

We always aim to build a company that someone would want to acquire one day – and that is not to say the company is “for sale,” because it’s not. However, by focusing on this end state even a long time down the road, you will naturally focus on building an efficient organization with happy and engaged staff and driving profitability and cash flow. Ultimately, this approach brings value to shareholders, employees and investors. 

We believe rescheduling propels us into the next phase of market evolution. If you build the company right, you’ll be able to take advantage of future opportunities, ensuring the success of a strong, unified team.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Vext Science at https://www.vextscience.com/.

CSE Issuer Stories, Magazine

MariMed succeeds with growth strategy prioritizing conservatism over quick wins

MariMed (CSE:MRMD) has captured opportunities across the cannabis value chain with its “seed-to-sale” approach, encompassing flower cultivation, product development, marketing and distribution, and retail operations in key cannabis growth markets in the U.S.

Importantly, the company chose a deliberate and evenly paced approach over the lure of rapid expansion to reach this point. The resulting financial and operational stability positions MariMed to take full advantage of the expected reclassification of cannabis under the Controlled Substances Act to Schedule III from Schedule I following a related submission by the U.S. Drug Enforcement Administration in mid-May. 

The Norwood, Massachusetts-based company was co-founded by Chief Executive Officer Jon Levine and the late Robert Fireman in 2011 with an initial focus on the medical segment to help people improve their everyday lives. It began as an advisory company to cannabis licence holders, and subsequently transitioned to a plant-touching operation that has since built out its business to six states: Illinois, Massachusetts, Maryland, Delaware, Ohio and Missouri, with plans to enter additional markets.

Levine told Canadian Securities Exchange Magazine that MariMed has taken a conservative approach to operations and acquisitions to ensure it did not overextend itself operationally or financially as so many cannabis companies have done.

“We had a vision of growing this business profitably to multiple states, and that’s where we have been very successful,” Levine says.

“We grew the company slower than most of our multi-state operator (MSO) competitors, focusing on fundamentals and profitability versus rapid, unprofitable growth just to say you are the biggest. We have one of the strongest balance sheets in the industry as a result,” he explains, highlighting that the company has very little debt, nearly all of which has a 10-year maturity, versus maturities of three to five years for most of their larger MSO peers.

MariMed focuses primarily on limited-licence cannabis markets in the U.S. All states in this category issue a predetermined number of licences to cannabis businesses. The high barrier to entry balances patient and consumer access to cannabis products, bringing price stability and other benefits.

But that doesn’t mean the company has seen less success in states that don’t adhere to the limited-licence approach, such as its home state of Massachusetts. Here, Levine says the company’s high-quality products, with their all-natural ingredients and precision dosing, have allowed it to remain competitive without being forced to drop prices nearly as much as the competition.

Under its portfolio are multiple award-winning cannabis products and brands, including Betty’s Eddies fruit chews, Nature’s Heritage flower and concentrates, a full line of InHouse value-priced products, Bubby’s Baked brownies and other confections, and Vibations, a hydrating powder drink mix.

“The winners in cannabis will be the companies with the strongest brands. We’ve believed that right from the start,” Levine explains. “People will trust and pay higher prices for consistent, high-quality brands. Similar to traditional consumer products, customers want to know that they will get the exact same Betty’s Eddies every time they purchase it and no matter the market. It sounds simple but not many cannabis operators deliver on that promise like we do.”

MariMed’s ultimate goal is to grow deeper in the states where it is currently operating until it is fully vertical and has maxed out its licences and then do the same in additional states. The company has applied for cannabis licences in Virginia, New York and Texas, which Levine says present significant growth opportunities in their respective medical markets. The company also intends to apply for licences in Kentucky, which recently approved a medical cannabis program.

In addition to its commitment to high-quality products, MariMed takes its position as an industry leader very seriously. Its advocacy on behalf of others has focused on the removal of U.S. tax code 280E, a provision that results in cannabis companies paying higher taxes than most other U.S. businesses due to marijuana’s status as a Schedule I controlled substance. The company last year held a 280E protest event where executives and team members tossed cargo chests emblazoned – but not actually filled – with “weed” into the Boston Harbor, taking inspiration from the famous Boston Tea Party tax protest of 1773 during its 250th anniversary. 

The Drug Enforcement Administration is expected to formally approve the rescheduling of cannabis as a lower-risk, Schedule III drug in the coming months, meaning cannabis companies will no longer be burdened by 280E. 

Levine hails the move as “historic” and a big win for the industry and the consumers it serves. “Among the most important benefits of rescheduling is that more credible research will be implemented to show the benefits of cannabis. We should ultimately see an exponential increase in the number of people who embrace cannabis as part of their health and wellness lifestyle.”

It will also result in industry-wide savings for cannabis companies, with MariMed expecting millions of dollars in tax reduction annually from the removal of 280E. Levine says these cost savings will free up funds for MariMed to accelerate growth, including expansion into new markets and investment in product innovation. The company is also adding new stock-keeping units, or SKUs, to its product lineup.

“We’re going to see improvement to our financials in revenue, margins and earnings before interest, taxes, depreciation and amortization (EBITDA) as we grow toward the end of the year,” Levine explains.

The company expects to see revenue growth in the range of 5% to 7% and adjusted EBITDA growth of up to 2% for 2024. 

For the first quarter, MariMed reported a 10% year-over-year increase in revenue, led by significant growth in its wholesale division and solid performance at retail. The strong revenue expansion led to the company achieving its 17th consecutive quarter of positive adjusted EBITDA.

“We’re heading in the right direction,” Levine says of MariMed’s financial performance. He spotlights that the company outperformed its competition in every market it operates in during the first quarter, including Illinois, where it began selling products through its new wholesale business in January. MariMed expects margins and revenue in Illinois to grow throughout 2024 as it bolsters operations, including opening its first cultivation facility. 

“We are battling additional competition, economic factors and seasonality, but long-term the future is bright for MariMed and the industry,” the CEO explains. “We’re very excited, for example, to continue ramping our Illinois production and cultivation and watch our revenue and margins increase along with that.” 

The company also expects to have its third adult-use dispensary up and running in Massachusetts very soon, which Levine said will drive MariMed’s margins and revenue higher for that state. It aims to open a new processing centre in Missouri as well and to expand the size of its Maryland cultivation facility to meet the growing demand for its products in that high-growth state.

With Ohio recently becoming the 24th state to legalize recreational cannabis use, the company plans to open a second dispensary there. It’s also evaluating opportunities to purchase a processing or cultivation facility and additional dispensaries to maximize its Ohio footprint.

“Those are things we expect to come that will bring more revenue and better margins in the second half of the year,” Levine notes.

MariMed’s momentum has carried into the second quarter. The Illinois brand rollout continues with its products available in over 130 dispensaries. In Massachusetts, the company recently announced a partnership with two iconic Boston music venues, MGM Music Hall at Fenway and Citizens House of Blues Boston. Positioned as each venue’s exclusive cannabis category sponsor, the partnership is generating enormous visibility and goodwill for its Nature’s Heritage brand. 

“We’re very excited that MariMed’s best days are still ahead,” says Levine.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about MariMed at https://marimedinc.com/.

CSE Issuer Stories, Magazine

Trulieve is setting the pace in a U.S. cannabis market on the verge of major change

Since launching in Florida’s medical cannabis market in 2015, Trulieve Cannabis (CSE:TRUL) has grown its operations to encompass a total of nine states across the U.S., expanding its team from 10 members to more than 6,000 and surpassing US$1 billion in revenue.

The company now operates the world’s largest retail network of cannabis dispensaries, not to mention more than 4 million square feet of domestic cultivation facilities, with 3 million square feet of that in Florida. Well-established hubs in the Northeast, Southeast and Southwest are anchored by leading market positions in Arizona, Florida and Pennsylvania.

Canadian Securities Exchange Magazine caught up with Trulieve Chief Executive Officer Kim Rivers in mid-May to discuss recent milestones achieved by the multi-state operator and upcoming catalysts in existing and new markets as regulatory initiatives at both the state and federal levels gain momentum.

Trulieve recently reported its first quarter financial results. Can you run through some of the highlights?

We had 4% revenue growth, both sequentially and year-over-year, to $298 million. We had a margin uptick from 54% in Q4 of 2023 to 58% and a significant increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from 31% to 36%, with over $100 million in adjusted EBITDA.

We’re seeing the consumer strength and behaviour that we experienced at the end of Q4 continue into Q1. We’re the only one of our peers that has reported strong sequential growth. The initiatives that we’ve invested in for the last 12 to 18 months are beginning to show up in a real way in our financials.

You are Florida-based with the majority of your operations in that state. How would approval of the Smart & Safe Florida initiative on the November 2024 ballot benefit the company?

We were very excited to have the Supreme Court rule in favour of allowing Amendment 3 on the ballot, which would allow for adult, personal use of cannabis in the state of Florida. We have been a big supporter of the expansion of access to cannabis wherever we operate. With Florida being our backyard, it’s very close to home for us and we’re very passionate about it. This is the first time the issue will be before Florida voters. 

Florida already is one of the best cannabis markets in the country with its medical market at close to 900,000 patients. If adult-use does pass, we anticipate that the market will grow to approximately $6 billion. 

It’s important to build that adult-use program on top of existing infrastructure. We currently operate 135 medical locations in the state and have extensive cultivation and manufacturing capability in Florida as well. Florida is a vertical market so everything in our stores in the state comes from a plant that we grew. It’s true, strict seed-to-sale.

So, it’s a tremendous opportunity for us in the state of Florida and a tremendous opportunity for Floridians. I’m really looking forward to having the opportunity to vote on the initiative in November.

Your other cornerstone markets are Pennsylvania and Arizona. What opportunities do you see in those markets?

In Pennsylvania, we are very encouraged by the momentum that is happening right now in the legislature. Governor Josh Shapiro is very supportive of moving to adult-use and we’re seeing increased discourse and bipartisan support of passing a bill in the legislature to move that market to adult-use. We believe that Pennsylvania could be an approximately $4 billion market. Pennsylvania also has a very robust, healthy medical market. We have seen tremendous growth in our brands, particularly among Roll One and Modern Flower.

Trulieve is in Arizona through our acquisition of Harvest Health & Recreation. We are at the point now where we have opened some brand new locations under the Trulieve banner and are looking forward to transitioning 100% of our store locations this year from the Harvest name into the Trulieve platform.

We also just launched our revamped loyalty program. Arizona was our first large market for the launch and that has done tremendously well. We had an approximately 30% adoption rate in just two months and we’ve seen a 50% increase in return frequency from those customers who are opting into that loyalty program, an incredible start out of the gate. We are looking to roll that program out to all of our other markets this year.

We’re also really excited about Ohio moving to adult-use and us being positioned to take advantage of that opportunity. We are waiting for some additional clarity but it looks like it could be as soon as the summer for adult-use to turn on in that market. 

There is a lot of positive momentum around policy reform in the U.S. with cannabis set to be rescheduled from a Schedule I to Schedule III drug and the SAFER Banking Act. How do you see this playing out?

Rescheduling will have huge implications, as it is the first significant policy change for cannabis to happen at the federal level. I believe that it’s the first important domino that could set off a series of additional policy changes. 

It takes a long time in the U.S. to have policy shifts. I think folks forget that the average length of time for a policy to make it from an idea to final passage is approximately 11 years. With SAFER Banking, we’re at the 10- to 11-year time horizon right now. That certainly gives me additional optimism that we could pass SAFER Banking on the heels of an official rescheduling of cannabis to Schedule III. 

The second thing is that it will open the door for additional research. I’m super excited about the possibility of having more clinical trials produce data we can lean into for our products and to make sure the public is as educated as they can be as it relates to the benefits and health concerns that this wonderful plant can help address.

One of the major benefits of rescheduling would be that cannabis operators will no longer be subject to tax code 280E. How would this impact your financial position? 

For folks who don’t know, 280E is a penalty tax for businesses working with a Schedule I drug, under which cannabis is currently classified alongside methamphetamine and heroin. It does not allow you to make any normalized business deductions, so we have a massively increased tax burden. After rescheduling, we would become a normal payer, which would drastically reduce that liability. The great news here is that we won’t have to wait for another process to unfold. It’s automatic. 

To put the impact in context, our 280E tax liability from 2021 to 2023 was $350 million. For the first quarter, our 280E exposure would have been approximately $46 million. It has a sizable, very material impact on our financials. 

Those potential savings are significant. Are there any particular initiatives you would reallocate these funds to? 

Optionality is critical in this business. There are a lot of things that happen externally that we look to influence but that are out of our control. We want to have optionality as it relates to our balance sheet position as well as flexibility for when opportunities do present themselves so we can act quickly on them ahead of growth cycles and catalysts. 

What can investors expect from Trulieve for the remainder of 2024?

We have built this company to be profitable and durable and you’re seeing that in our numbers. The only way we are able to deliver those results is through the strength of our products and our relationships with our customers, so we continue to invest in our customer experience and our employees. Also, our fully automated 750,000 square foot indoor cultivation facility in Florida has turned on and is contributing to significantly lower costs, which show up in our margins and give us greater optionality and flexibility in terms of the customer experience we’re able to deliver.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Trulieve Cannabis at https://www.trulieve.com/.