Tag Archives: OTC Markets Group

The Benefits of Cross-Trading in the United States

For many Canadian companies, the successful listing of their security represents an important milestone. It’s a sign of recognition, prestige and success, demonstrating to the market a desire to be open and transparent. There are many reasons why a company may choose to list its shares – to raise capital, increase its valuation and diversify its shareholder base. But many companies are unaware that there are limitations as to what can be achieved by solely listing in Canada. They may not be cognizant of the fact that many U.S. investors are unwilling or unable to invest in foreign markets, and that the information they make available locally may not be widely available to U.S. investors. So, what is the best way to bridge this gap and access the world’s largest market for capital expansion and growth? Cross-trading.

There are numerous benefits to Cross-Trading in the US:

  • Diversifying your shareholder base
  • Making your financial information, research, pricing, and risk assessment more broadly available to U.S. investors
  • Appealing to those investors who prefer securities traded domestically ($USD)
  • Enhancing visibility among broker dealers by supporting broker and sell-side compliance

A national exchange, such as NYSE or Nasdaq, may be perceived to be the natural home and fit for most foreign issuers looking to access a deep pool of institutional investors. However, foreign issuers, such as those in Canada, are subject to U.S. exchange requirements and different accounting standards that can become duplicative, time-consuming and cost-prohibitive for global IROs with limited budgets. On the contrary, cross-trading on the OTC Market allows a company to leverage its existing reporting standards to make its disclosure available in the U.S. The simplified requirements to trade OTC remove duplication, are less-resource intensive and require fewer expensive experts.  This secondary trading solution helps to remove trading restrictions and complements the company’s home market reporting process. In turn, a company improves its ability to maximize shareholder value, achieve better visibility and a fair valuation in the U.S. public market, while increasing the effectiveness of its investor relations program.

Cross-trading also presents both Canada and the US with reciprocal opportunities for issuers to enhance market liquidity, creating additional investing opportunities in a company’s home market and abroad.  Providing a cost-effective trading environment in which to raise capital and build global investor awareness.

In addition to cross-trading, OTC Markets Group Inc. and the Canadian Securities Exchange (CSE) recently developed a first-of-its-kind North American capital formation and visibility solution for start-ups looking to go public.  This alliance offers issuers the benefits of the IPO listing on the CSE, combined with secondary trading on OTC Markets’ OTCQX Best Market/OTCQB Venture Market.  This affords investors and the broker dealer community greater access to a breadth of financial information, increased global investing opportunities and more efficient trading of international issuers shares.  Simple processes and fixed fee structures remove many of the barriers of cost, time and complexity typically associated with going public on an exchange. Helping companies bridge the gap and expand their footprint– paving the way for capital expansion and growth.

This story was featured in the Service Providers magazine.

Learn more about OTC Markets Group at https://www.otcmarkets.com/.

Upcoming Event: Leveraging the CSE to Access US Capital Markets

As  public companies know, having access to a wide investor base is an important component to the health of a public listing. For Canadian listed firms, however, knowing how, where and when to take the next step to leverage greater access to the US capital markets is often difficult and time consuming process to navigate.

Fortunately, an upcoming information session sponsored by the Canadian Securities Exchange (CSE) can help shed light on the matter.

The CSE in partnership with OTC Markets Group, MNP LLP, BCF, Dentons, Canaccord Genuity, and Torys will be holding an information session on listing in the US via one of the OTC Markets Group venues.

The session itself will take place in Montreal on February 24th and includes speakers and representatives from the CSE as well as OTC Markets Group. Attendees will have the opportunity to ask the experts specific questions related to the process of operating within the OTC group of marketplaces via a listing on the CSE.

Attendees can expect to learn about a number of valuable topics, including:

  • CSE listing standards and the process of listing a company on a Canadian stock exchange
  • OTC Markets overview, quotation standards, and process to get a stock quoted in the US
  • Legal and accounting considerations of companies seeking a public presence in Canadian and US capital markets
  • Insight into trading dynamics of stocks that are quoted in Canada and the US
  • Trends in financing early-stage ventures, both in Canada, and the US

Space is limited for this event so be sure to register early to claim your spot. For more information or to register, click this link or contact Scott Pritchard at (514) 594-6848 or scott.pritchard@thecse.com

 

The CSE is Exhibiting and Speaking at Upcoming Canvest 2014 in Toronto

The Canadian Securities Exchange (CSE) is pleased to announce that it will be exhibiting at the upcoming Canadian Investor Conference in Toronto (Canvest) on September 25-26. This show will be a slight shift from the usually scheduled Toronto Resource Investment Conference as it will be broadening the scope of the show across the resource and technology sectors.

The CSE is scheduled to be housed at exhibit booth #809. We applaud the organizers at Cambridge House International for organizing a show that presents investment opportunities across several sectors as this is certainly tailoring the show to the appetites of today’s investment community in Toronto.

Richard_Carleton_canvestAdditionally, CSE CEO Richard Carleton will be participating on the panel titled, “Alternative Financing Methods” along with OTC Markets Group CEO Cromwell Coulson – we are looking forward to hearing their insight regarding the evolution of North American capital markets.

Mark your calendars for this show and we will be sure to see you there. Pre-registration is now open by following the link here.

See you in September!

Seminar Video: Harnessing the Power of Cross-Border Markets

The CSE – Canadian Securities Exchange, in partnership with OTC Markets Group, Clark Wilson LLP, and Canaccord Genuity (US) hosted a special presentation for companies interested in discovering the benefits of a cross-border market presence in Canada and the US.

(See the event photo gallery here)

Held on July 17th, 2014 in Vancouver – topics covered included an update on the CSE, OTC Markets Group’s listing standards and processes, market making, and insights on optimizing a cross-border market presence. Watch the entire event below:

Part 1 – CSE Presentation by James Black

Part 2 – OTC Markets Presentation by Steven Jenkins

Part 3 – Panel: Harnessing the Power of Cross-Border Markets

Part 4 – Panel: Harnessing the Power of Cross-Border Markets