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CSE increases number of listed issuers by 35% in 2014 as growth accelerates

Last updated: 09:07 16 Jan 2015 EST, First published: 10:07 16 Jan 2015 EST

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The Canadian Securities Exchange (CSE) is coming off a banner 2014, with the exchange finishing the year with a total of 244 listed companies, a 35 percent increase from 2013.

Total trading volume for the year was 2.3 billion shares, up 165 percent from the previous year. CSE-listed companies also conducted 211 financings, raising a total of $155 million, $76 million more than 2013.

The company said the figures reflect its success in reducing the cost of capital for Canadian public companies, making the process of accessing Canadian public markets easier. 

For 2015, the Canadian exchange expects growth to remain strong, as it introduces several new initiatives aimed at further strengthening its competitive edge, it added.

The stock exchange not only offers lower listing costs than other exchanges in Canada, but the process to getting approved is much easier. Despite pretty standard regulatory and disclosure requirements across the Canadian landscape, the real difference between CSE and others is the business oversight at the exchange level. 

The CSE requires a monthly update from each issuer, which is not required on other exchanges, making up for the fact that upfront business diligence is not conducted by the CSE, dramatically reducing the time frame from application to listing as well as advisory and legal fees.

Companies from a wide range of business sectors listed on the CSE in 2014, including pharmaceutical, health care, technology, mining, clean tech, oil and gas and financial services.  Approximately half of new listings came in the form of public companies transitioning to the CSE from other exchanges, the CSE said.

Among those stand-out performers last year, Pivotal Therapeutics (CSE:PVO) and Helius Medical Technologies (CSE:HSM) each raised more than $7 million, while medical marijuana company Supreme Pharmaceuticals (CSE:SL) also completed a significant equity raise.

Supreme was also an exchange volume leader in 2014, alongside other companies in the medical marijuana sector such as Abattis Bioceuticals Corp. (CSE:ATT) and Affinor Growers (CSE:AFI), according to CSE's statement.

“Technology was a standout on the financing front, with issuers in the sector accounting for around half of all capital raised on the CSE in 2014,” said CSE chief executive officer Richard Carleton. 

“But fundraising challenges remain and this makes our operating model attractive for companies at the early to mid stages of development.  With no immediate relief on the horizon, our low-cost, highly efficient listing model will remain an important incentive for fast growing companies to work with us.”

The Canadian stock exchange's efforts to remain ahead of the game this year include a new program designed to enhance issuer liquidity, as well as new order routing, compliance and risk management tools to assist dealers and more resources to support existing issuers.

Plans also call for a broader foreign markets strategy, it said, after the CSE became a designated exchange with the leading operator of over-the-counter markets in the US in early 2014. Companies had greater trading liquidity as a result, as US investors gained access to CSE stocks through domestic broker platforms that were able to provide quotes denominated in US dollars.

The CSE is now looking to explore this model with exchanges in Europe and the UK in 2015.

“We put a lot of effort into raising our profile with key segments of the public finance community in Canada and internationally in 2014,” said Carleton. 

“Our goal is to build on those achievements throughout the current year, ensuring easier market access to enhance liquidity, reaching out to institutional investors to explain the merits of the CSE," he added.

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on 25/1/22