(MENAFN- ProactiveInvestors - N.America) The Canadian Securities Exchange (CSE) says that its number of listed issuers rose almost 24 percent in September from the same time last year as companies increasingly look to tap into the junior exchange's many benefits.
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.
The total number of issuers reached 250 for the first time on September 18. At the end of September, it had 253 listed issuers, a 23.5 percent increase over the same time last year.
Total equity capital raised by CSE issuers since the beginning of the year has also surpassed $100 million. As of the end of September, 87 issuers, spanning from oil and gas to pharma, had conducted 160 financings, raising a total of $109.9 million.
Trading volume also increased in the third quarter -- quite a feat amid a challenging landscape for Canadian juniors -- rising a whopping 252 percent compared to the same period in 2013 to 549 million shares.
"The accelerating expansion we see on all fronts illustrates clearly that entrepreneurs looking to tap the public markets for growth capital are increasingly aware of the advantages offered by the Canadian Securities Exchange," said CSE chief executive officer, Richard Carleton.
"Our streamlined compliance process, low listing costs and issuer support initiatives are proving the right fit for more and more businesses in an environment where cost of capital is more paramount to the success of small-cap companies than ever before."
Of the financings conducted so far on the CSE in 2014, notable ones included medical device developer Helius Medical Technologies (CSE:HSM), which raised some $7.62 million in May, and real estate social network RESAAS Services (CSE:RSS), which took in $4.0 million in July.
Tech sector financings contributed 51.4 percent of capital raised by CSE issuers in the first three quarters of this year.
"Trading volume at record levels and issuers finding receptive audiences for financing efforts shows that a growing number of investors, both individuals and institutions, are coming to appreciate the opportunities to deploy capital available on the CSE," said James Black, VP of listings development at the exchange.
"Our services are attracting early stage businesses as well as companies that are already established in their respective industries."
So far in 2014, the CSE has welcomed a record 60 new listed companies, and says it will continue to build on this number during the remaining months of this year, with a large number of applications in hand from prospective issuers.
In 2013, the CSE recorded a total of 37 issuers for 2013. The TSX welcomed 108 new issuers in 2013, down from 132 in 2012, while the TSX Venture listed 76 companies last year, far below the 161 in 2012.
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