Record financing activity highlights CSE’s importance to the entrepreneurial community

The Canadian Securities Exchange announced outstanding performance in 2020, highlighted by record financing activity among its issuers and the second highest level of trading activity in the Exchange’s history.

Key 2020 Statistics

• CSE issuers completed 1,208 financings, far surpassing the 837 financings completed in 2019 and 901 completed in 2018, which were previously the Exchange’s two strongest years for financing activity;
• Capital raised by CSE issuers totaled $3.6 billion, compared to $3.3 billion in 2019 and $5.4 billion in 2018;
• Trading volume was a near-record 26.9 billion shares, compared to 19.4 billion shares in 2019 and 28.6 billion shares in 2018;
• Value of traded securities was $15.2 billion, compared to $21.4 billion in 2019 and $20.3 billion in 2018, the only three years in the Exchange’s history in which the value of shares traded exceeded $10 billion;
• The CSE had 629 listed securities as at December 31, 2020, an increase of 11% compared to 569 as at December 31, 2019; and
• The aggregate market value of CSE issuers was an all-time high of $42.1 billion as at December 31, 2020.

“The CSE and its issuer community met the challenges posed by the pandemic and the extreme market volatility experienced over the course of the year,” said Richard Carleton, CSE Chief Executive Officer. “I am particularly proud of how our team stepped up and continued to provide a high level of service to our customers. Once the volatility in the spring subsided, we witnessed substantial interest from the investment community for early-stage growth companies. Trading volumes expanded, issuers completed more financings, and our new listings steadily increased.”

“We are positioned for another excellent year in 2021 as the trends in our business remain highly positive. In particular, we are excited about the strong revival of the mining industry in the public markets, the continued strength and resilience of the cannabis industry, the recent excitement surrounding blockchain-related investments, and the rapid emergence of the legal psychedelics sector, in which we now have more than 30 listings. As the Exchange for Entrepreneurs, we are the natural destination for companies seeking capital in this new and exciting industry.”

The CSE continued its trend of strong listings growth in 2020, adding 88 new listings during the year. This total included 42 new mining listings as rising commodity prices, particularly for precious metals, drove strong demand for mining securities. The CSE also added 15 cannabis/hemp listings, 19 technology listings, and 12 listings in other diversified sectors.

The Exchange maintained its leading Canadian position in initial public offerings during 2020. Of the 43 IPOs completed on Canadian stock exchanges for issuers with existing business operations, 25 were listed on the CSE, according to CPE Analytics. IPOs have become an increasingly popular route to the public markets for emerging companies in recent years.

Financing activity in 2020 was led by the mining and cannabis/hemp sectors. Mining issuers completed 371 financings that raised $525.9 million, while cannabis/hemp issuers completed 350 financings that raised $2.4 billion. There were also 30 financings in the emerging psychedelics sector that raised $93.8 million. Financing activity peaked in the month of December, when CSE issuers completed 141 financings, a record for a single month. Those deals raised $726.2 million, the fourth highest monthly level in the Exchange’s history.

Trading volumes were solid throughout most of 2020 and accelerated late in the year. In December 2020, trading volume exceeded five billion shares, only the second month in the CSE’s history in which this milestone was surpassed. On December 14, 2020, trading volume exceeded 549 million shares, a single-day record for the Exchange.

Stakeholder engagement was a key priority for the CSE during 2020, as the Exchange adapted to COVID-19 protocols and introduced a steady stream of virtual events and online content. Highlights included Mining Over Canada, a massive multi-media overview of Canada’s mining industry, and Cannabis Month, a month-long series of podcast interviews with thought leaders from the sector. The CSE also grew its media capabilities substantially, producing 82 episodes of the #HashtagFinance podcast and 348 videos for the CSETV YouTube page.

“We are pleased with our competitive position, but we aren’t standing still,” Mr. Carleton said. “During 2021, we will continue to improve and increase our issuer services to reinforce our position as the ideal public market option for entrepreneurs based in Canada and around the world.”

About the Canadian Securities Exchange:

The Canadian Securities Exchange is a rapidly growing stock exchange focused on working with entrepreneurs to access the public capital markets in Canada and internationally. The Exchange’s efficient operating model, advanced technology and low fee structure help companies of all sizes minimize their cost of capital and maximize access to liquidity.

The CSE offers investors in Canada and abroad access to a multi-sector collection of growth companies through a liquid, reliable and highly regulated trading platform. The Exchange is dedicated to entrepreneurship and has established itself as a leading hub for discourse in the entrepreneurial community.