Tag Archives: CSE

Richard Carleton on Celebrating 15 Years as a Recognized Exchange

In this very special 50th episode of #HashtagFinance, CSE CEO Richard Carleton joins James Black as the podcast’s first-ever repeat guest to celebrate the CSE’s 15-year anniversary as a recognized exchange (1:02), to reflect on how the growth of the cannabis industry affected the evolution of the CSE (7:08), to discuss the upcoming expansion from junior exchange to an exchange that’s focused on a broader base of securities (12:48), and how it felt to ring the bell at the very first Market Open at the CSE Media Centre (24:10). Listen until the end to learn more about the culture and people who have helped the CSE achieve this milestone, why Richard loves coming into the office every day, for details on the new Media Centre, and to see what’s ahead for the CSE. Cheers to 15 years!

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Interview with Canadian Securities Exchange CEO Richard Carleton: H1 2019 Review

When it comes to achieving milestones at the CSE, the Exchange for Entrepreneurs is on an extended winning streak. With capital raised by CSE-listed issuers, trading value, and number of listings (more than 500!) all reaching new heights, it’s already been a strong start to 2019. Scroll on for an exclusive, in-depth interview with CSE CEO Richard Carleton as he discusses the factors contributing to this sustained positive momentum, and provides a glimpse of what’s ahead for the next half of this record-breaking year.

The first half of 2019 saw the CSE continue to grow in terms of total capital raised by issuers, trading value and a new record for the number of companies listed. Can you start by giving us the story behind the strong performance? What is allowing the CSE to consistently grow so quickly compared to other exchanges?

It is a continuation of the trends we saw establish themselves in 2018. There remains strong interest in the cannabis sector, particularly for companies working on opportunities in the United States, and increasingly now in the Caribbean Basin, South America, Europe, the Middle East and Asia. We’ve seen a considerable amount of funds raised in the sector and an increasing pace of mergers and acquisitions activity.

We’ve also seen renewed interest in the mining space.  I was looking at our year-to-date numbers the other day and to the end of June, an identical number of mining companies have joined the exchange this year as cannabis issuers. We have also welcomed a significant group of technology companies.

These are very positive trends: the diversification in the makeup of newly listed companies is healthy, and I think the rebound in the mining sector – particularly gold exploration – is something that people are going to be very interested in as the year progresses.

I recently saw comparisons showing the CSE leading other venture-focused exchanges in several categories, including average issuer market capitalization and average financing size. What’s driving these KPIs and is it sustainable?

Again, this is largely a cannabis story. If you look at our most active stocks, they tend to be from the cannabis sector. What it speaks to, in particular, is continued retail interest in the industry. It also speaks to the appeal of the issuer community we have been able to bring to the exchange. It’s a very diverse set of companies, ranging from those involved in cultivation in Canada to multistate operators in the US, and companies looking even further afield internationally.

We are also starting to see issuers with more than just cultivation.  Examples would be companies that are looking to make improvements in extraction, others in biotechnology, and yet others building brands in specific markets. These companies, in some cases, trade for $15 or $20 per share, and that positively impacts the value of trading.

Let’s run with that theme. Last year, Curaleaf’s IPO was the biggest the CSE had ever seen, at the equivalent of some CDN$520 million, and Harvest Health & Recreation announced a financing in April of this year equal to around CDN$650 million. Those are just a few examples of financings big enough to fuel sustained national or multinational growth. What are you hearing from issuers regarding who is coming into these deals, and their general experience raising large amounts of capital on the CSE?

What is interesting about these transactions – and you didn’t mention the largest of all, which is the short-form prospectus that Acreage filed with the Ontario Securities Commission recently to raise up to US$800 million – is that they really are global efforts.

We know that Canadian retail and institutions have been long-time supporters, which seems kind of funny to say for an industry that is, at best, five years old. But they continue to be a significant and core part of large financings. And we are increasingly seeing participation from the United States. Family offices, hedge funds, and high net worth individuals are backing these raises. Parsing the information after a financing closes, we also see interest from institutions and family offices in Europe and Asia. When we totaled it up last year, we saw 103 different jurisdictions around the world represented by investors in deals on the CSE. I think on a year-to-date basis it is about 83 jurisdictions represented. Basically, every part of the globe has participated in capital raises conducted through the facilities of the CSE.

Issuers have emphasized to me repeatedly that there are no concerns with the fact that their company is listed on the Canadian Securities Exchange. We are a recognized exchange around the world for a variety of tax and pension investment purposes, and because we have achieved that status our issuers find very little resistance to investment in their transactions because of their listing exchange.

The British Columbia Securities Commission is now one of your official regulators. Explain that development and what it means going forward in practical terms. Will it slow or change things in any way?

The British Columbia Securities Commission has been talking about taking on this role for as long as I have been with the Canadian Securities Exchange, and that’s about 12 years at this point. The reason is that a majority of the companies listed on the CSE are domiciled in British Columbia.

I think the commission moving now is a reflection of our relevance and continued growth in the number of listings. There are now over 250 BC companies that trade on the CSE. With so many connections to the province, I believe the commission concluded that it was in their interest to take an active role in the regulation of the exchange.

Our long-standing principal regulator is the Ontario Securities Commission; the BCSC will be working with the OSC to make sure there are not any duplicative activities. As a result, I am confident that the BCSC move will not impact the operation of the exchange in any way. We have worked very closely with the OSC and BCSC over the years and will continue to do so effectively.

I hear the CSE is planning to introduce a separate tier for senior companies. What is the thinking behind that?  What benefits will it offer companies that qualify for this tier?

We find ourselves in a situation unique in Canada. Under the National Instruments that set out how companies and exchanges are regulated, it’s really divided into two worlds: venture exchanges and non-venture exchanges. The rules for companies listed on a venture exchange have a lighter touch than for companies listed on a non-venture exchange, such as the Toronto Stock Exchange. We find ourselves in the fortunate situation of having listed companies that fall into both “venture” and “non-venture” buckets.

We are not proposing any change in the way our early stage companies are regulated. We now have a substantial number of companies that have significant market capitalizations, tangible assets, and revenue coming from a variety of jurisdictions. A regulatory framework designed to oversee the operations of a junior mining exploration company really is not up to the task of overseeing the operations of a US multistate operator in the cannabis industry with a multi-billion-dollar market cap and hundreds of millions of dollars in annual revenue.

We’ve been dealing with this to date by imposing higher standards on these larger companies as they list. So, there has been no regulatory gap, but we are now in the process of introducing changes to our listing rules designed to make these higher standards official and transparent.

When the project is complete, following a process with our regulators and a public comment period, these companies will be separately identified for the information of investors. We expect that the securities of these senior issuers will be eligible for margin under IIROC rules. It will also give the exchange the ability to list special purpose acquisition corporations, which are becoming an increasingly popular vehicle for creating public companies in Canada. It will also enable us to initiate an ETF listing program, which several parties have been very interested in listing on us. It will help address concerns that institutional investors and professional investors in Canada and the US may have had about the opportunity for regulatory arbitrage between the CSE and other exchanges in Canada.

There is a lot of interest among finance industry professionals in the blockchain-based clearing and settlement system the CSE is developing. What can you tell us about your progress?

The first thing to note is that we retained Andrew Grovestine within the past three months. Andrew is an experienced brokerage industry executive and is going to lead our effort to create a settlement and clearing service in Canada based on distributed ledger technology.

Our vision here is not really to emphasize the clearing and settlement service, although it’s certainly a key component of how we believe the future is going to play out. What we are really looking to do is to provide a safe, regulated environment for the listing and trading of tokenized securities. We think this will be of real interest to companies and investors because using these tokenized securities substantially reduces costs for issuers wanting to pay dividends, royalty streams, or other entitlements a company might want to provide its shareholders. By doing it in this way we can cut the cost of capital for issuers and incent the creation of a whole range of new and interesting instruments, whether they are in the form of common equity or debt, or other types of security instruments that will be of interest to both retail and institutional investors.

One of the pieces of that puzzle is the clearing and settlement component, which will make trading more efficient by shortening the clearing and settlement cycle. It will also make the processing of entitlements to shareholders significantly more efficient. But, as I say, the real headline here is that we want to create the best structure for tokenized securities to trade in a regulated environment.

As far as where we are with the project, we are about to initiate third-party testing with the dealer community. We’ve assembled an advisory group of dealers who will help to guide us through the process and they are excited about the opportunities that this initiative could bring to the market.

The CSE has not raised new capital for many years and on the surface would seem to benefit from a stable ownership structure.  How does this help you to serve the market?

We’ve been blessed to have patient and supportive principal shareholders over my term as CEO. I’d begin with Urbana Corporation, which is Tom Caldwell’s investment fund. Mr. Caldwell, as you know, is Chairman of the Canadian Securities Exchange. Shortly after Mr. Caldwell led the recapitalization of the company he was joined by Ned Goodman, who served as Vice Chairman for a number of years.

I can’t tell you how much credibility the investments from Mr. Caldwell and Mr. Goodman brought to the organization. I think that the CSE team was always respected in the industry, but there were concerns as to whether we had the resources to stay in the game for the long haul. With the support from Mr. Caldwell and his team and Mr. Goodman’s investment, those concerns were permanently put to rest, and laid the groundwork for the growth we have enjoyed over the last several years.

Mr. Caldwell, in his presentations, talks about Urbana being “patient capital” and that has absolutely been true with us. We have been able to make investments in a variety of aspects of our business, including in trading technology and adding personnel to meet the increased pace of applications in response to the regulatory challenges this posed. We moved into our new premises in First Canadian Place at the end of January and are in the process of building a presentation centre there that will be used to host listed companies for a ceremony on their first day of trading, and also to recognize key milestones our issuers achieve.

While these investments may have been done at the expense of short-term profitability, we are again positioning the exchange to support even higher levels of growth in the future. Our shareholders have been very, very supportive.

It is definitely the spirit at the CSE to always be looking to do things better. What are you doing to keep momentum going in terms of growth and building the brand?

As people who follow our Instagram and Twitter accounts know, we have been racking up the frequent flyer miles over the past couple of years. There is a concerted effort by the team to get out there and tell the story of the Canadian Securities Exchange to influencers, be it lawyers, accountants or investment dealers and bankers. We’ve been doing a lot of work with the community to ensure they understand who we are and what our value proposition is. We also, of course, engage in direct sales work with individual companies that are looking to access the Canadian public capital markets.

That has been a big part of our success over the last few years, but the thing that I think truly sets us apart from most securities exchanges – not just in Canada but around the world – is that we are the only start-up exchange in recent memory that has really had an impact on the local capital market. People see that and see the success we’ve had and understand that it reflects the CSE team’s experience, knowledge and commitment to customer service.

The other thing I attribute it to is the fact that we are entrepreneurs ourselves. I have noted in past interviews how most of the team here has been through the lean times and worked with us through multiple fundraising efforts. We have done exactly the same thing that the entrepreneurs who come to us to list their companies do.  We’ve done the investor pitch decks, we’ve signed the NDAs, we’ve done the presentations, we’ve had the door slammed in our face.  That gives our team insight into the challenges that an entrepreneur faces as they try to raise money to achieve their business goals. Understanding where they are and knowing that we have been in their proverbial shoes builds an energy around the organization that people sense and really take a high degree of comfort in.

We’re doing all of the other things I mentioned, such as building a presentation centre for listing ceremonies. We built a podcast studio and are releasing podcasts at a furious rate through the various media we use to distribute them. Our initiatives via the Internet and social media are developing a real following.

It’s not any one thing, I think it’s a combination of all those things that gives people the sense that we are on the right track and that this organization is really going places.

Special Presentation: Security Token Offerings (STOs) at Blockchain Revolution Global

This special presentation from the Blockchain Revolution Global Conference in April 2019 is brought to you by the CSE – Canadian Securities Exchange. This conversation between CSE CEO Richard Carleton and Blockstation CTO Jai Waterman, with hosting duties by CSE’s James Black, dives into the world of Security Token Offerings (STOs) and how the industry will deliver this necessary evolution in equity capital markets. Highlights from the discussion include an interactive example of how transactions work on blockchain (3:45), the critical differences between ICOs and STOs (8:15), and the disastrous consequences of the paper generated in today’s financial system. (26:45). Listen to the entire presentation to hear about the 10 problems in today’s equity capital markets that can be solved with STOs and how the CSE is creating an exchange-based solution to deliver STOs to the investing public.

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The CSE Year In Review

It is clear from speaking with people both inside the Canadian Securities Exchange and around the broader financial community that 2018 is going to be remembered as perhaps the most transformational year in the CSE’s history.

Huge financings, billion-dollar market caps, a steady stream of international listings, and financial institutions investing in CSE issuers like never before are only some of the talking points. Fast-growing, well-capitalized companies and strong investor interest in them have elevated the exchange to a new level.

Total capital raised by CSE issuers looks set to increase by over 500% compared to 2017, with a chance at topping the $5 billion mark.  Curaleaf Holdings certainly played its part, raising $520 million during its listing transaction in October. The company stated in a related news release that over 100 financial institutions had supported its financing.

Rapid expansion of market capitalization
“Clearly, standout events have been taking place over the last few months, with the number of very large US-based cannabis issuers that have joined the exchange,” remarks Richard Carleton, CSE Chief Executive Officer, during a discussion in late November. “We are seeing the most rapid expansion of market capitalization and impact on the exchange since our inception.”

Climbing 13.25% year-to-date, the total market capitalization of CSE listed is growing appreciably thanks to the contributions of several larger entrants to the marketplace. And while Curaleaf leads the way with its $2+ billion valuation, there are plenty of other issuers that qualify as solid mid-caps in the Canadian market. Microcaps still constitute the majority of listings, but bigger companies are finding the exchange to be a suitable home as well.

It’s no secret that the CSE is the go-to exchange for listing cannabis companies with operations in the United States. The CSE never shied away from the cannabis industry in Canada, and when considering how to manage prospective issuers from south of the border, exchange officials spent time with regulators and professional services providers to confirm there was a high degree of comfort with the industry’s risk profile. One of the advantages of investing in public companies, after all, is strict disclosure standards designed to ensure that investment risk can be accurately assessed.

The next development in the cannabis sector at the CSE, beyond more large listings almost ready to debut, is the development of cannabis index products in 2019. “The CSE is the only location globally where you see as heavy a concentration of US cannabis issuers, so we are the logical place for such an index to be calculated and disseminated,” notes Carleton. Could related ETFs be far behind?

Whilst cannabis stocks may be dominating the headlines, the CSE has also welcomed a strong contingent of new mining companies in 2018, a total of 57 through the end of November.

“We have in fact seen a significant number – and in absolute numbers almost a record – of mining companies get onto the exchange and receive funding this year,” says Carleton. “My sense is that some of the profits from trading in the cannabis space over the last couple of years are being applied to the mining sector.”

Tech listings have been increasing as well, even though appetite for everything blockchain has slowed compared to the enthusiasm of late 2017. Interestingly, the industry enthusiasm for cannabis might just dovetail with ongoing international outreach initiatives by the CSE to put new funding alternatives on the table in the tech space.

Canadian public equity markets a viable alternative for
US companies

Smaller companies in the US and other international markets are finding it increasingly difficult to obtain private funding as private equity funds increase in size and need to make larger investments in portfolio components. A primary Canadian listing on the CSE would be worth considering for many young growth companies.

“We are being exposed to advisors in the United States who are beginning to understand that the Canadian public equity markets are in fact a viable alternative for US companies looking for growth capital,” says Carleton. “We’ve had conversations with a number of these professionals about taking what we have learned from the capitalization efforts in the US cannabis space and applying that to companies from other sectors that perhaps have not been that well served by the venture capital and provide equity models that are the principal source of growth capital for early stage US companies.”

Speaking of tech, the CSE has an ongoing project of its own in the form of a blockchain-enabled clearing and settlement facility. The project team is in the late stages of quality assurance and plans call for moving to external testing with dealers and other interested parties before the end of 2018.

“Dealers continue to be extremely eager to get their hands on it,” Carleton explains. “They understand the business case and the client service benefits, as well as the number of companies that would like to use security tokens as a means of securing capital.  We continue to be very excited about this facility and it is going to be one of the things on the agenda for 2019.”

Continually working to improve the issuer experience is an important part of the CSE’s culture, and that’s reflected in exchange staff organizing or participating in over 80 events during 2018.

New Toronto office
The CSE seeks to make that part of its business even stronger in 2019 with relocation to a new office, the highest office floor in Toronto, no less – 72 stories up at First Canadian Place. “This was really brought on by the anticipated growth in our staffing levels, particularly in the listings regulation area,” says Carleton. “It is important that we continue to maintain high service levels for our issuers and deploy our regulatory responsibilities as an exchange.”

A full-blown market opening centre is in the works and it will be just one of several first-day activities designed to ensure that a new issuer’s launch into the public markets gets off to a good start. “The new First Canadian Place location will provide the space and a spectacular backdrop to have exactly that kind of experience.”

New issuers will be pleased to learn that they are joining an exchange that again set full-year records for trading volume, trading value, and other measures of investor participation.

Trading volume up
In the first 11 months of the year, trading volume was already 54.97% higher than the total for all of 2017, topping 27.05Bn shares. Most measures of investor activity had actually surpassed last year’s record levels by mid-summer. And with the listing application pipeline exceptionally healthy as we head into year-end, look for 2019 to be another blockbuster.

Granted, capital markets in Canada are having a better year in general, but the CSE’s pace of growth in 2018 is validation of a business model that puts the needs of issuers first.  Fund managers from around the world confirm this, sophisticated management teams who choose the CSE over multiple alternatives confirm this, and investors trading tens of millions of shares per day in individual companies confirm this.

Carleton and his team see it first-hand and fully anticipate 2019 to be another year of growth and progress in many forms. Be it cannabis and tech businesses listing from the US, Israeli companies following up on the CSE’s multiyear effort there to introduce the listing concept, or new investors learning about the many opportunities presented by CSE issuers, the outlook could hardly be brighter.

“Things are going well but we need to keep our foot on the accelerator,” Carleton concludes. “Top-quality service for our issuers, a fair and well-regulated trading environment, and continued innovation in the exchange’s technology and business practices. It has worked so far, and we are going to keep at it.”

This story was originally published at www.proactiveinvestors.com on December 31, 2018 and featured in The Public Entrepreneur magazine.

Learn more about the Canadian Securities Exchange at https://www.thecse.com/.

One World Lithium: Explosive demand for energy storage stokes future for One World Lithium

Energy storage sounds very much like a prosaic industry, but it is poised for a boom.  One World Lithium (CSE:OWLI) hopes to be part of the explosive growth.

Tim Brock, a consultant to One World Lithium, or OWL, believes that a junior company with an eye on eventual production must strive to be a low-cost producer with a long-term supply contract.  “One World Lithium has the potential to do this,” he said.

OWL has reason to be excited, given the particulars of its Salar del Diablo property in the State of California Baja Norte, Mexico.  The project covers a large closed basin that provides a compelling exploration setting for the presence of lithium in brines. The Salar del Diablo project has the potential to be a low-cost producer, one reason being that it sits about 35km from San Felipe, a cost-efficient regional service center with a deep-water port that could ship lithium carbonate to customers in Asia and the rest of the world, Brock explained.

One World Lithium has an option to acquire up to a 90% interest from the New Energy Discovery Group.  The company currently has a 60% working interest and on completion of the initial drilling program will have earned an additional 20% working interest with an option to purchase an additional 10% on receipt of a bankable feasibility study.

OWL expects to have an OTCQB listing in September as well as to be interlisted on the Frankfurt Exchange.

Lithium has multiple industrial applications, including lithium-ion batteries, heat-resistant glass and ceramics, lithium grease lubricants, plus as an additive for iron, steel and aluminum.  All told, this creates demand greater than current world supply.

Demand for lithium-ion batteries for electric cars, storage, and mobile devices by manufacturers in Asia, Europe and North America, has mixed with supply trends to drive lithium prices significantly higher.

The price of lithium is up 870% since 2005, and 177% in the last year alone.

In addition, countries are beginning to set dates after which all vehicles sold must be non-internal combustion.

Brock believes several trends will influence the energy storage industry through 2025.

Demand for lithium carbonate will more than double to 600,000 tonnes by 2025 from 270,000 tonnes in 2018.  Meanwhile, supply should rise to between 500,000 and 700,000 tonnes in 2025, compared with about 200,000 tonnes at present.

Lithium supplies currently dominated by Albemarle Corp., SQM and FMC Corp. “may be challenged as more independent production of lithium comes on line,” Brock notes. 

All of this is keeping the energy storage industry on the boil. 

The Salar Property is slated for drill-testing in late October 2018.  Plans call for 4,000m of drilling at 11 drill site locations to intersect possible lithium bearing aquifers. The pre-drilling results from geochemical, geophysical and geological work defined over 60 sq. km of potential lithium in brine aquifers (formations). The Salar is approximately 8,000 feet deep, which gives the potential for stacking of more than one aquifer going to depth.

There are five geological conditions that must be present in order to successfully explore for a lithium-in-brine deposit.  These are a closed basin, meaning that no fluids can escape; presence of hot springs; a volcanic source of lithium; faults to transport the lithium to the Salar; and a regional heat source.  The Salar del Diablo meets all of these necessary conditions. As a comparison, these conditions are also present at the Salar de Atacama, which is a similar size to the Salar del Diablo.

OWL has been in discussions with potential buyers as well as offers to joint venture future exploration but elected to drill the property on its own.

The market is watching in anticipation as the Salar del Diablo project is one of the largest lithium-in-brine prospects to be drilled in 2018.

This story was originally published at www.proactiveinvestors.com on August 29, 2018 and featured in The Public Entrepreneur magazine.

Learn more about One World Lithium. at https://oneworldlithium.com/ and on the CSE website at https://thecse.com/en/listings/mining/one-world-lithium-inc.

Record third quarter for CSE continues momentum through Q3 2016

CSE is proud to present its most recent quarterly update video and press release below highlighting the record third quarter of the year at the Canadian Securities Exchange:

Multiple Industry Sectors Push CSE Trading Volume, Financings to New Records in Third Quarter of 2016

CSE Posts Record Activity in Q3 of 2016

The Canadian Securities Exchange (CSE) today released performance metrics for the third quarter of 2016 highlighting continued strong growth, particularly in trading volume and capital raised by CSE listed companies. Both measures rose to the highest levels ever recorded by the exchange.

Key Statistics

  • Trading volume in CSE listed securities climbed 138% compared to the third quarter of 2015 to 1.27 billion shares;
  • Companies listed on the CSE conducted 85 financings for gross proceeds totaling $109 million, an increase of 222% over the same period a year earlier;
  • The CSE finished the July-September quarter with 315 listed securities, 13 more than at September-end 2015;
  • Trading on the CSE platform in securities listed on other exchanges totaled 811 million shares, higher year on year by 59%.

Metrics for January through September also set records, with the 3.27 billion shares traded in CSE listed securities outpacing the total for all of 2015 (2.48 billion shares). CSE listed companies raised $226 million in the first nine months of the year, compared to $195 million in full-year 2015.

Trading volume continues to gain momentum in the fourth quarter, with a record 99,704,073 shares trading in CSE listed securities on October 6. Over the past 30 days the CSE has set new records for both daily trading volume and number of trades on seven occasions.

Several CSE issuers ranked among the most actively traded public companies in all of Canada during the quarter as investor interest increased across most industry sectors, and particularly for life sciences companies. The CSE also welcomed one of the few Initial Public Offerings completed in Canada this year when Glance Technologies Inc. (GET) made its trading debut on September 7.

Toward the end of the quarter, the exchange announced several important executive level appointments, and the addition of a highly experienced financial industry executive to its Board of Directions (http://thecse.com/en/news/cse-announces-senior-appointments-to-board-of-directors-compliance-and-listings-teams). The appointments were made to expand business development coverage and deepen the pool of expertise in the listings review group.

The CSE team remained hard at work connecting with entrepreneurs, hosting events in Vancouver, Calgary, Montreal and Toronto during the quarter, as well as presenting and exhibiting at the first ever Mines and Money conference held in North America. Senior exchange staff also travelled to China and Mongolia to continue outreach efforts in growing overseas markets.

The exchange is pleased to report that it will soon implement a new trading system technology featuring execution services for all equities listed in Canada. Related to this, a commitment to heightening the visibility of companies listed on the CSE through continued investor events and publications (including the CSE Quarterly magazine), plus support for market-making and other activities, will assist with further advances in volume and liquidity.

“The CSE is firing on all cylinders, with an improved capital markets backdrop helping our issuers to meet, and in some cases exceed, their financing targets,”

said Richard Carleton, CSE Chief Executive Officer.

“Having added several talented executives to our team, the CSE is positioned even more strongly to facilitate access to growth capital for entrepreneurs at the lowest possible cost, while providing liquid and accessible trading services for investors anywhere in the world.”

Strong second quarter for CSE leads to record first half of 2016

CSE is proud to present its most recent quarterly update video and press release below highlighting the record first half of the year at the Canadian Securities Exchange:

Growth in Trading Volume and Financings Highlight Productive Q2

CSE Posts Record Activity in First Half of 2016

The Canadian Securities Exchange (CSE) is pleased to release an update on activity of the second quarter of 2016, resulting in a record first half of 2016 highlighted by record trading volume, changes to listing requirements, and initiatives to help CSE issuers build on recent positive momentum in financing and other aspects of corporate development.

Key Statistics

  • Trading volume in CSE listed securities grew 64% compared to the first half of 2015 to 2.01 billion shares;
  • The CSE finished the first six months of 2016 with 328 listed securities, up 12.3% compared to the same period the previous year;
  • CSE companies conducted 178 financings for total gross proceeds of $123 million, up 28.4% over the first half of 2015;
  • Trading on the CSE in securities listed on other exchanges totaled 1.82 billion shares, an increase of 19.1%.

Growth in trading volume and financing proceeds during the first half of the year reflected both the increased number of securities listed on the CSE and noticeable improvement in Canadian investor sentiment across all sectors. The 2.01 billion shares traded in CSE listed securities in the first six months of 2016 puts the exchange well ahead of its pace of 2015, when a record 2.47 billion shares traded for the full year.

The CSE is proud to highlight a busy first half supporting issuer outreach to the financial community with a variety of activities. These include CSE Days held in major cities where executives enjoy the opportunity to present to audiences of financial industry professionals, retail investors and issuer peers.

The exchange also published new issues of its CSE Quarterly magazine, the most recent leading with a profile of the CSE’s top performing companies as measured by growth in market capitalization (the CSE Quarterly magazine can be viewed at https://blog.thecse.com/2016/06/01/cse-quarterly-issue-9-now-live/).

In addition, the CSE launched a new website in April. The modern format makes it easier for investors to gather information on CSE companies, and for both existing and prospective issuers to access the resources they need to make interaction with the exchange as efficient and cost-effective as possible. The CSE’s new website can be accessed at http://www.thecse.com.

Other achievements in the first half of 2016 included a comprehensive update to initial listing requirements. Proposed changes were published for comment in February and following feedback the modified rules were submitted for regulatory approval. The new requirements will become effective in Q3 upon publication of a notice from the exchange.

In the second half of 2016, the exchange will work to finish a review of continued listing requirements for listed companies. A list of proposed amendments will be published for comment in the near future.

“The CSE team is constantly working on new and dynamic ways to drive our mandate, which is supporting entrepreneurs and lowering the cost of capital for early stage companies,”

said Richard Carleton, CEO of the Canadian Securities Exchange.

“The activities we undertook in the first half of 2016 made our offering as an exchange stronger, as evidenced by growth in both trading volume and financings closed by our issuers. We will continue to support CSE listed companies with a variety of public efforts, and by working with regulatory authorities to improve the operating environment for Canadian financial markets as a whole.”

For the full-length semi-annual interview with CSE CEO Richard Carleton please click here for the transcript.

Hitting their Stride: Two Growing Tech Firms Push Confidently into 2014

A great piece was published today by Peter Murray of Proactive Investors that discussed two emerging technology companies listed on the CSE.  The article discusses Gener8 Media Corp. (CSE:GNR) and RESAAS Services Inc. (CSE:RSS) and their respective performances in 2013 as well as what has been driving their recent successes.

Of particular interest is how both of these technology companies have approached the challenges of growing their businesses and how they’ve sought the additional capital to support that growth.

Highlights from the article include:

  • How Gener8 Media Corp has become a leading provider of 2D to 3D conversion for the entertainment industry;
  • Gener8’s capital raising strategy and how it has helped to transform their business;
  • The success of RESAAS’s online social platform designed around real estate agents;
  • How RESAAS has managed its resources to enable them to compete for additional revenues.

We’re happy to hear about the growth these companies have achieved and look forward to hearing about what transpires for 2014.

For more information, you can check out the full article here:
Gener8, RESAAS put West Coast on CSE’s tech map with big 2013 gains

And watch the video profiles below for each company:

Photo above: Gener8 CEO Rory Armes – photo/video credit Noravera Visuals – www.noravera.com