The Canadian Securities Exchange announced that issuer activity in the first half of 2019 resulted in robust performance metrics, with trading value, new listings and aggregate financing value being particularly strong. The financing value measure reached its second-highest level for a six-month period, highlighted by CSE issuers conducting 94 transactions for gross proceeds of $980 million in the month of May.
Cannabis and related companies accounted for 83% of capital raised in the first half, followed by the Diversified Industries and Mining sectors. Participation in CSE issuer financings was broad based, with investors from 83 countries and other jurisdictions worldwide taking part (69% of capital raised in the half came from outside of Canada). US-based issuers raised $1.058 billion dollars, while Canadian issuers raised $1.056 billion.
Financings conducted in the first half included a significant cohort of debt instruments, examples being US$105 million of senior secured debt by Green Thumb Industries (GTII), US$100 million in convertible debentures by Harvest Health & Recreation (HARV), and a unit offering by Trulieve Cannabis (TRUL) comprised of US$70 million in senior secured notes and accompanying subordinate voting share warrants.
With the strong performance of 2018 having continued into the first half of this year, several metrics illustrate the CSE as one of the preferred destinations for companies seeking to list in Canada. These categories include issuer average market capitalization ($49.47 million), average financing size ($5.94 million), and average value per trade ($3,295). Liquidity, measured by trading turnover, also remained robust at an average per month of 9.64%.
Expanding the CSE’s international presence is an important ongoing objective. The increase in companies listing on the exchange from outside of Canada, as well as the growing amount of foreign capital participating in CSE issuer financings, reflects efforts to connect with companies and investors overseas and explain the opportunities inherent in a CSE listing. In the first half of 2019, CSE focus turned to South America, the UK, Israel and the United States.
The CSE also opened a new podcast studio at its Toronto head office in the first half and has so far released 33 discussions with CSE issuer executives and financial industry experts through a strong and growing distribution network.
“The independent nature of our ownership enables us to pursue initiatives that bring important new opportunities for issuers and enhance the experience of every company listed on the Canadian Securities Exchange,” said Richard Carleton, CSE Chief Executive Officer. “The entrepreneurship inherent in our corporate culture keeps us in synch with the needs of our issuers, and through the balance of this year and into 2020 we will make new announcements showing how our team’s work continues to strengthen the value of a CSE listing.”
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