The Canadian Securities Exchange (“CSE”) is pleased to report record results in all performance categories for 2017, with dramatic increases in trading volume, value traded and financing activity making it by far the strongest year in the organization’s history. Trading volume more than doubled compared to 2016. Many companies now routinely trade over 10 million shares per day. Trading value increased over four times, thanks in large part to strong investor participation in the cannabis and technology sectors.
Key Statistics
– Trading volume in CSE listed securities rose 171% in 2017 to 17.4 billion shares;
– The value of trade in CSE listed securities was $7.8 billion, an increase of 403%;
– CSE issuers raised a total of $842 million, up 110% compared to 2016;
– The CSE set new daily volume records on December 28, 2017, when 456 million shares worth a total of $389 million changed hands, while New Age Farm Inc. (CSE: NF) set a new daily highwater mark for a single security with turnover of 81 million shares;
– The CSE Composite Index closed the year at an all-time high of 1,425 points, up 82%.
Cannabis companies were the most active issuers on the exchange in 2017. Trading volume in the cannabis sector rose to 9.4 billion shares, and several companies completed financings in the range of $10 million to $20 million.
Technology companies incorporating blockchain into their business plans were also notable, particularly in the second half of the year. Multiple issuers conducted financings in the $5 million to $10 million range, and the exchange ended the year with 26 blockchain-related companies.
Mining companies placed third in terms of volume. Several companies with later-stage projects conducted significant financings to pursue production goals.
The CSE finished 2017 with a healthy pipeline of applications from prospective issuers. While October-December 2017 was the busiest quarter for new listings in the exchange’s history, more applications were being processed at the end of the period than at the beginning. The exchange finished 2017 with 345 listings, an increase of 11% on the year.
The CSE’s expanding relationship with the OTC Markets Group in the United States was also important to performance during 2017. Multiple companies chose the CSE for their primary listing, later adding a regulated board OTC quotation to cost-effectively access U.S. retail and institutional investors.
The exchange was also active with international outreach during 2017, its most recent effort involving a senior management visit to Israel. Israeli companies joining to learn more about the CSE spanned sectors from artificial intelligence to biotechnology and medical devices. The potential for collaboration between Israel’s start-up community and capital markets in Canada was clear.
In the fourth quarter of 2017, the exchange was delighted to learn that its largest shareholder, Urbana Corporation, purchased additional shares from existing shareholders to increase its ownership position to 49%. Urbana Corporation is run by Thomas Caldwell, the founder of Caldwell Securities and also the CSE’s chairman. Companies run by Mr. Caldwell have held significant positions in securities exchanges around the world, including the New York Stock Exchange.
For 2018, the CSE plans to continue leveraging its efficient listing environment, low fixed-fee structure, issuer marketing support and other strategic advantages to further strengthen its offering to entrepreneurs seeking an efficient platform for accessing capital through the public markets.
“The Canadian Securities Exchange had a spectacular year in 2017 and credit goes first and foremost to the long list of issuers taking advantage of stronger economic conditions to raise capital and execute on their business plans,” remarked CEO Richard Carleton. “The record level for the CSE Composite Index at the end of year demonstrates that many CSE issuers are creating tremendous value for their shareholders. We are pleased that the exchange is delivering on its promise to facilitate access to the capital entrepreneurs need to drive that growth and are excited about the prospects for 2018.”