Quarterly Review: CSE Off to Great Start in 2015

With the first calendar quarter of 2015 now in the books, the CSE is on pace to have another exceptional year. Through Q1 of 2015, the CSE has achieved a number of important milestones, implemented structural improvements and continued to attract interest from publicly listed companies looking to improve their cost of accessing capital.

The Q1 numbers also support the continued positive momentum: 20 listings, 62 financing deals and $42.3M raised. As good as they are, however, there’s more to story of Canada’s fastest growing securities exchange than just impressive numbers.

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CEO Richard Carleton

Recently, the CEO of the CSE, Richard Carleton, sat down with Peter Murray from Kiyoi Communications to provide a deeper discussion of the exchange’s achievements as well as the opportunities on the horizon for 2015. The full interview will be available in the next issue of the CSE Quarterly however here are some of the highlights.

Improving Connectivity to the CSE

Alongside the rapid growth in listings on the CSE has been growing retail investor interest in accessing the companies trading on the exchange. Over the past year, the CSE has worked with several of Canada’s major independent and bank-owned online brokerages to help them meet strong client demand to provide direct trading access on the CSE.

In Q1 two major bank-owned online brokerages, TD Direct Investing and BMO InvestorLine, enabled direct trading for their clients bringing the total number of online brokerages with direct trading access on the CSE to 13. With the addition of these significant bank-owned brokerages, clients of all major Canadian bank-owned brokerages can now trade CSE-listed securities conveniently via their online platforms.

Tracking the Pulse of Innovation

Another significant milestone achieved by the CSE this past quarter was the launch of the CSE Composite Index. As the Exchange for Entrepreneurs, the CSE is uniquely positioned to attract innovators looking to grow via the public markets. The diversity of industries and sectors represented by securities listed on the CSE was, in part, a driving force behind creating the CSE Composite Index. According to Carleton, “The index is an excellent measure of the development and growth of a broad cross-section of Canadian small-cap public companies.”

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Staying a Step Ahead

In addition to the successes in broadening connectivity to and tracking of the exchange, the CSE undertook important steps to preserve the sustainability and integrity of the Canadian public markets landscape. The interview also covers in-depth the context behind the guidance issued on plans of arrangement and firms choosing to list via this option. An important theme of that discussion was that creating confidence for investors ultimately serves to benefit all marketplace stakeholders.

As crucibles of innovation, publicly traded markets are constantly evolving. And, while staying on top of this change is challenging enough, getting ahead of the curve is simply the reality all public market stakeholders need to embrace.  For the CSE, like many entrepreneurial firms, innovation, responsiveness and creativity are key to being able to keep pace with the speed of change.

Be sure to read the full interview to learn more about how the CSE views the current climate for small-cap stocks and listings, how the CSE is positioning itself to respond to the emerging trends in capital raising and why more and more companies are likely to continue joining the exchange.

To access the full interview, register for the CSE Quarterly mailing list here.

CSE Trading & Listing Review: March 2015

New Listings

The Canadian Securities Exchange continued with strong momentum through Q1 of 2015. March was a particularly busy month at the CSE with the PDAC at the beginning of the month as well as the CSE Composite Index undergoing its initial rebalance. Operationally there was lots on the go. Listings on the CSE continued to grow with the total number of securities listed climbing to 280. Helping to propel the number of listings higher were the 10 new companies that joined the CSE.

  1. Ameri-Can Agri Co. Inc. (ACM)
  2. JG Wealth Management Corporation (JGW)
  3. Aydon Income Properties Inc. (AYD)
  4. Can-Ameri Agri Co. Inc. (CGQ)
  5. Saratoga Electronic Solutions Inc. (ABA)
  6. Ansar Financial and Development Corporation (AFD)
  7. Qwick Media Inc. (QMI)
  8. Nutritional High International Inc. (NHL)
  9. IGEN Networks Corp. (IGN)
  10. Data Deposit Box Inc. (DDB)

Financing Activity

The number of financing deals in March remained strong at 17 (vs 18 in February) with the value of those deals increasing slightly ($10.6M vs $9.6M) compared to the prior month. On a YTD basis, technology company financings have been dominant, representing 77% of the financing deals completed.

CSE Trading Activity

CSE trading activity also remained robust in March. 251M shares were traded (a 15% increase m/m) representing a total value of $35M and an average value per trade of $1,849.

The top five most active securities on the CSE by volume for March were:

  1. Nutritional High International Inc.
  2. Matica Enterprises Inc.
  3. GeoNovus Minerals Corp.
  4. Khan Resources Inc
  5. Jagercor Energy Corp.

The top five most actively traded securities on the CSE for March  were:

  1. Nutritional High International Inc.
  2. Cannabix Technologies Inc.
  3. Matica Enterprises Inc.
  4. InMed Pharmaceuticals Inc.
  5. Supreme Pharmaceuticals Inc.

For full trading information for March, click here to access the monthly trading summary.

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Other Updates

CSE Composite Index had its first rebalancing of 2015 take place. The index is normally expected to be rebalanced quarterly on the third Friday in each of March, June, September and December. Below are the most recent changes that were made to the CSE Composite Index.

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Upcoming Event: The CSE Day Breakfast Update Vancouver

To help get your day started right and also provide some food for thought, the Canadian Securities Exchange, along with sponsoring partners Clark Wilson, Davidson & Company LLP, and Equities.com, are holding a complimentary breakfast update session for public venture companies.

The breakfast information session is part of The CSE Day Vancouver, which takes place on Thursday April 23rd from 8:30am to 10am at the Pan Pacific Hotel Vancouver in the Coal Harbour Room. Further details and RSVP information are provided below.

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Attendees of this event will be treated to breakfast as well as to a number of informative presentations. First, CSE representatives will provide an update of the activities and milestones achieved by the CSE this year. In addition, the CSE will provide a brief overview of the listing requirements and process to join Canada’s fastest growing securities exchange.  Pertinent topics for public venture companies will be covered by Clark Wilson LLP and Davidson & Company including:

  • Amendments to continuous disclosure and corporate governance obligations of venture issuers;
  • Update on Regulation A+ offering reforms;
  • Accounting hot-topics for public companies.

This inaugural “CSE Day” stands to be a popular session so be sure to RSVP online here as seating for this breakfast event is limited.

Event Recap: The CSE at PDAC 2015

As with years past, there was a lot to see and do at the 2015 edition of the PDAC. Over 23,000 individuals including mining executives, resource & exploration professionals and enthusiasts from 116 different nations braved the March weather to attend this year’s conference and get a flavour for the current state of the mining industry around the world.

The team from the Canadian Securities Exchange was on hand at the CSE booth and to co-host a networking luncheon alongside  MNP LLP, Newsfile and Peterson & Company LLP.  In addition, the CSE initiated a sponsorship this year for Mining Matters, a youth program aimed at inspiring the next generation of mining and resource enthusiasts.

For the CSE, it was another great conference with steady traffic to the exhibition booth as well as a strong turnout to the networking luncheon, great speakers, great food and of course great company.

Click through the slideshow below to see pictures from the exhibition floor and the networking luncheon.

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CSE Trading & Listings Review: February 2015

Although February is the shortest month of the year, for the CSE, there was still more than enough activity to make for a busy month. In addition to the exciting launch of the CSE Composite Index, there was a whole host of healthy listing, financing and trading activity.

New Listings

On the listings front, the CSE welcomed the following 6 new listings to the exchange bringing the grand total number of securities trading on the CSE to 273 as of February 28th.

  1. True Leaf Medicine International Ltd. (MJ)
  2. Weststar Resources Corp. (WER)
  3. Bravura Ventures Corp. (BVQ)
  4. Montego Resources Inc. (MY)
  5. Tosca Resources Corp. (TSQ)
  6. Rheingold Exploration Corp. (RGE)

Of those listings, Montego Resources came to the CSE as an IPO, raising $510,000 via their agent Canaccord Genuity Corp.

Financing Activity

February was also another strong month for financing activity at the CSE. There were 18 financing deals worth a total of $9.6 million dollars. In terms of sectors, there was a strong interest in technology deals followed by mining and diversified industries. Thus far for 2015, financing for technology listings on the CSE have been very healthy.

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Trading Activity

CSE trading metrics for February continued to remain strong. The total volume of trades reached 217M (a 57% increase year over year) with a total value traded of $64M.

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There were just over 19.5 thousand trades with an average volume per trade of 11,128 and an average value per trade of $3,281.

The top five most active issues on the CSE by volume for February were:

  1. Manitoba Hydro Bds XII F/R 1.75% 15JUN18 (MHL.DB.B)
  2. Cannabix Technologies Inc. (BLO)
  3. Matica Enterprises Inc. (MMJ)
  4. M Pharmaceutical Inc. (MQ)
  5. InMed Pharmaceuticals Inc. (IN)

The top five most actively traded issues on the CSE for February were:

  1. Cannabix Technologies Inc. (BLO)
  2. Abattis Bioceuticals Corp. (ATT)
  3. InMed Pharmaceuticals Inc. (IN)
  4. Matica Enterprises Inc. (MMJ)
  5. Supreme Pharmaceuticals Inc. (SL)

A full trade summary for February can be accessed here

Other Updates

Here are some quick highlights of other listings/trading related news from February:

  • Hybrid Paytech World Inc has changed its name to Mobi724 Global Solutions Inc. (MOS)
  • Kenieba Goldfields changed its name to EA Education Group Inc. (EA)

CSE Launches New Composite Index

The CSE is fast becoming the exchange of choice for innovative and entrepreneurial public companies. Every day there are stories of companies joining the exchange who wish to harness the advantages that lower cost access to capital brings. Along with its growth as a securities exchange, however, the CSE is also establishing itself as a nexus for innovation within the Canadian capital landscape.

To provide a gauge of innovation at work at the exchange, the CSE along with partners at Solactive AG, developed an index of CSE companies which launched shortly before the beginning of March this year. Solactive calculates indices for over 160 clients across the globe.

The CSE Composite Index is a cap-weighted index and is made up of companies listed on the CSE with a market cap of at least $5 million.

At the most recent count, the CSE Composite Index represents 65 issues across a diversity of sectors and has a combined value of just over $1.6 billion. The index is rebalanced quarterly (on the third Friday) in March, June, September and December.

As can be seen in the graph, technology firms make up a substantial portion of the listings in the index followed by mining, diversified industries, life sciences, clean tech and oil & gas respectively.

SectorWeightings_March2015

With the index being less than a month old,  and having undergone its first rebalancing, there appears to be a promising future ahead of it. Nonetheless there are still some important milestones to reach. One of the big challenges that is being addressed, for example, is ensuring widespread access to the performance data of the index.

Currently quotes are available via Bloomberg or Thomson Reuters with the ticker CSECOMP. The CSE hopes to widen access to multiple sites and quote feeds in the near future. For the moment, index performance updates are also available on the CSE website homepage. Also, the CSE Composite Index information page contains details on which companies comprise the index as well as additional data on sector weightings, top holdings and historical performance.

The CSE – The Exchange for Entrepreneurs (VIDEO)

The Canadian Securities Exchange is one of the fastest growing equities exchanges because of its ability to lower the cost of Canadian public capital for entrepreneurs. Recognized as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capital formation process for public companies through a streamlined approach to company regulation that emphasizes disclosure and the provision of efficient secondary market trading services for investors. The only exchange trading all Canadian listed equity securities, the CSE is home to more than 270 uniquely listed issues covering a broad range of industry sectors.

For more information please visit www.thecse.com and our blog at https://blog.thecse.com/.

Featured Listing: Goviex Uranium (GXU)

Goviex UraniumThe combination of a growing global population, increased dependence on electronic devices and concern over environmental impacts of fossil fuels are three of major challenges facing governments around the world. For countries that have turned or are turning to nuclear power to generate electricity, stable access to uranium is key. Meeting that need is the focus of CSE listed firm Goviex Uranium (GXU).

Goviex Uranium debuted on the CSE in 2014 with an IPO and has been working towards the development of their flagship project in Niger, the Madaouela Project. Recently, Goviex Uranium’s CEO, Daniel Major, completed a video interview (see below) with BTV where he discussed their flagship project in more detail.

Representatives from Goviex Uranium will be at PDAC 2015 in Toronto and are scheduled to present at the CSE-sponsored investor luncheon (for more details click here).

To learn more about Goviex Uranium, visit their website at http://www.goviex.com/ .

TD Direct Investing’s WebBroker Now Connected to the CSE

As more Canadians choose to manage their own investments online, Canada’s discount brokerage firms are becoming increasingly important hubs to accessing and managing investing opportunities. Recognizing the importance of this trend, the CSE has been working hard to ensure that investors have convenient, direct access to the over 270 (and growing) securities listed on the Exchange.

To that end, the CSE is proud to announce the addition of another Canadian online brokerage, TD Direct Investing, to the list of firms offering their clients real-time quotes and direct online trading access to CSE listed securities.

TD Direct Investing is a significant presence in the Canadian online brokerage marketplace. According to financial research firm Investor Economics, TD Direct Investing is one of Canada’s largest online brokerages by assets and trading. With the addition of TD Direct Investing’s WebBroker,  online trading of CSE securities is now accessible to the vast majority of  Canadian discount broker clients.

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Connectivity to the CSE has been something requested by many TD clients over the years.  As soon as the new functionality was enabled, social media users were quick to notice and share the good news.

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CEO Richard Carleton said: “Ensuring Canadian investors have convenient access to trading CSE listed securities is a major priority for the CSE. We are very pleased that TD Direct Investing’s clients will now be able to quickly and conveniently access the growing number of securities listed on the CSE.”

For the latest information on Canadian online brokerages offering connectivity to the CSE, check the CSE website here.

Upcoming Event: The CSE at PDAC 2015

In just a few weeks, mining and exploration companies, investors and dignitaries from across the globe will brave the Toronto weather for the annual Prospectors and Developers Association of Canada (PDAC) conference, the world’s largest mining and exploration conference.

The PDAC 2015 edition will feature a dizzying number of events packed into the first four days of March.  From soil samples to soirées, there will most certainly be something for everyone.

This year’s PDAC will also be an exciting one for the CSE.  In addition to exhibiting at the Investor’s Exchange, the CSE will also be hosting an investor networking luncheon as well as signing on as a sponsor for the outreach organization Mining Matters.Meet the CSE team at PDAC 2015

Individuals interested in connecting with representatives from the CSE can stop by booth 2542 at the Investor’s Exchange section each day of PDAC 2015.  Along with the CSE, there will be several CSE-listed firms exhibiting including Regal Resources Inc. (RGR), Newlox Gold Ventures Corp. (LUX), Copper Reef Mining Corp. (CZC) and Western Uranium Corporation (WUC).

In addition to exhibiting at the PDAC, the CSE  in partnership with MNP LLP, Newsfile and Peterson & Company LLP, will be hosting a special investor luncheon on Tuesday March 3rd from 11:30am to 1pm.  During the luncheon, attendees will hear from a number of CSE-listed firms and will also have the chance to network with and ask questions to CSE representatives.

Last year’s luncheon was a tremendous success and filled up quickly. As space is limited be sure to register early here.

With a significant portion of their listings coming from across the natural resources sectors, the CSE is keenly aware of the current climate for publicly listed mining and exploration companies. Though there may be headwinds facing the mining industry, the PDAC typically demonstrates the enthusiasm with which those challenges are met.  According to CSE CEO Richard Carleton, “We’re excited to be back at the PDAC. The energy of the conference is great and we look forward to connecting with entrepreneurs who demonstrate, time and again, the ability to overcome the challenges that the mineral exploration sector throws their way.”

Without question, the PDAC 2015 will showcase the great entrepreneurial spirit and resilience that characterizes the mining industry. The fact that they’re willing to brave Toronto in March is a testament to that.

For more information on PDAC 2015 or to register, click the link here.