Photo of Joe BrennanBy Joe BrennanDecember 10 2015
Business Law

Who lists on the TSX Venture Exchange?

Our office works with a number of public companies listed on both the TSX Venture Exchange and the Toronto Stock Exchange.  A typical client starts as one or more entrepreneurs with a good business that they wish to grow, or with a good idea that they wish to exploit, but with the need to raise capital to achieve those goals.  

They may keep the business “private” and follow the five typical stages of venture capital funding (Stage 1 Seed Capital, Stage 2 Start-up Capital, Stage 3 Early Stage Capital, Stage 4 Expansion Capital and Stage 5 Bridge/Pre-Public Capital).  

Alternatively they may avoid private venture capital financing and instead go public early using the public venture capital markets, such as the TSX Venture Exchange, to raise the capital they require.  Those that are successful eventually graduate to the Toronto Stock Exchange.

But who lists on the TSX Venture Exchange in the first place and how much money do they typically raise?  While the variances are significant, especially with respect to the size of financings, the facts and figures recently released by the TSX Venture Exchange for the first 9 months of 2015 provide some useful information:

ListingsMarket CapitalizationFinancings
1,839 total companies listed$23 billion market capitalization937 financings
67 new companies listed in 2015$12.5 million average market capitalization$2.7 billion in equity capital raised
$2.5 million* median market capitalization$2.9 million average financing

*Note that a large number of companies listed on the TSX Venture Exchange are small capital pool companies or public shells with very low market capitalizations that negatively affect the median market capitalization.

Information on Sectors Listed

SectorTotal ListingsNew ListingsEquity Raised
Mining60%24%$796 million
Oil and Gas12%3%$410 million
Diversified Industries6%13%$388 million
Technology6%16%$250 million
Clean Technology & Renewable Energy4%6%$45 million
Life Sciences4%12%$219 million
CPC3%19%not published
Financial Services2%4%$480 million
Real Estate2%1%$138 million

Invitation for Discussion:

If you are looking to raise money to grow your business, or would like to discuss any of the topics raised herein or any other business law matter, please do not hesitate to contact one of the lawyers in the Business Law group at Nerland Lindsey LLP.

Disclaimer:

Note that the foregoing is for general discussion purposes only and should not be construed as legal advice to any one person or company. If the issues discussed herein affect you or your company, you are encouraged to seek proper legal advice.

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