Canadian Securities Exchange Reports Strong Third Quarter and Year-to-Date Performance
October 23, 2020 – Toronto, ON – The Canadian Securities Exchange (“CSE” or “the Exchange”) today announced strong performance and operating highlights for the three- and nine-month periods that ended September 30, 2020 (“Q3 2020” and “YTD 2020,” respectively). The Exchange is pleased to report record financing volumes, strong trading activity and listings growth, as well as continued engagement with the investment community despite disruptions related to COVID-19.
- CSE issuers completed 335 financings in Q3 2020 and 865 financings in YTD 2020, the highest levels achieved in any three- or nine-month period in the Exchange’s history. CSE issuers completed 215 financings in the third quarter of 2019 (“Q3 2019”) and 617 financings in the first nine months of 2019 (“YTD 2019”);
- The capital raised by CSE issuers totaled $725 million in Q3 2020 and $2.4 billion in YTD 2020, compared to $488 million in Q3 2019 and $2.6 billion in YTD 2019;
- Total trading volume was 6.5 billion shares in Q3 2020 and 17.2 billion shares in YTD 2020, compared to 3.7 billion shares in Q3 2019 and 15.6 billion shares in YTD 2019;
- Total value of traded securities was $3.7 billion in Q3 2020 and $8.5 billion in YTD 2020, compared to $4.5 billion in Q3 2019 and $18.6 billion in YTD 2019;
- The CSE had 608 listed securities as of September 30, 2020, an increase of 11% compared to 546 as of September 30, 2019; and
- The aggregate market value of CSE issuers was $23.6 billion as of September 30, 2020.
“The Canadian Securities Exchange continues to demonstrate that it is the ideal public market option for entrepreneurs,” said Richard Carleton, CSE Chief Executive Officer. “The fact that we are seeing record financing volumes during a global pandemic is a tribute to both our issuers and our platform. We are also excited by the diverse new listings we are attracting, including a notable uptick in mining listings. We are working hard to add further value for issuers and investors in the coming months through many ongoing initiatives.”
The CSE added 20 new listings in Q3 2020 and 65 new listings in YTD 2020, while attracting the vast majority of initial public offerings in Canada. Of the 27 IPOs completed on Canadian stock exchanges during the first nine months of the year, 21 were listed on the CSE, according to CPE Analytics.1
Listings growth on the CSE in YTD 2020 was led by the mining sector, with 34 new mining listings. The mining industry has gained significant investor interest in 2020, as gold prices have reached record levels. The CSE also added 11 new listings in the cannabis/hemp sectors, 10 listings in the technology sector, and 10 listings from other diverse industries.
The CSE experienced a major uptick in trading and financing volumes beginning in May 2020, after being impacted by COVID-19 in the prior months. The elevated levels of trading and financing continued through the end of September 2020. As noted above, the number of financings in Q3 2020 and YTD 2020 reached record levels. Trading volume in Q3 2020 increased 73% compared to Q3 2019, while trading volume for YTD 2020 increased 10% compared to YTD 2019 despite the slower start to the year.
Financing activity in YTD 2020 was led by cannabis/hemp and mining issuers. Cannabis/hemp issuers completed 236 financings that raised $1.6 billion, while mining issuers completed 272 financings that raised $376 million. Significant capital was also raised in other sectors such as technology (121 financings that raised $120 million), non-cannabis life sciences (52 financings that raised $124 million), and cleantech (49 financings that raised $42 million).
The CSE continued to fulfill its mandate of supporting and promoting entrepreneurial activity throughout Q3 2020, producing diverse content through its blog, YouTube channel (CSE TV), and Instagram feed that covered a broad range of companies and industries. Special events sponsored during the quarter included Tech Strikes Back, What’s Next for the Cannabis Industry?, The Psychedelics Renaissance, and many more. The CSE was also proud to participate in three events focused on the advancement of women in business during the quarter, two of which it sponsored. Beginning on October 19, the CSE is presenting Mining Over Canada, an in-depth, multi-channel media series that explores the mining industry and its impact across the country. Participants will learn about some of the most exciting exploration and development companies in the sector and hear from recognized industry experts.
The CSE also announced changes to its Board of Directors during Q3 2020. Four new nominees were elected to the Board at the annual meeting on September 29, 2020: Hema Barkhouse, Michael Bluestein, Brendan T.N. Caldwell, and Eric Sites. Both Ms. Barkhouse and Mr. Bluestein are independent directors. More information on the new directors can be found in the CSE’s news release dated September 30, 2020. Former directors Thomas S. Caldwell, George Elliott, and Joel Strickland did not stand for re-election at the meeting. Steve Blake succeeded Tom Caldwell as CSE Chairman effective September 14, 2020
1 Excluding Capital Pool Companies and Special Purpose Acquisition Companies.
The CSE fosters positive working relationships with issuers, providing superior responsiveness to their specific needs. It offers investors in Canada and abroad access to a multi-sector stable of growth companies through a liquid, reliable, and highly regulated trading platform. The Exchange strongly supports entrepreneurship and has established itself as a leading hub for discourse in the entrepreneurial community.
#HashtagFinance Podcast: https://blog.thecse.com/pe-podcasts/
Richard Carleton, CEO