The Canadian Securities Exchange (CSE) released strong first-quarter 2019 results on Tuesday, topping new records for aggregate CSE issuer market capitalization and the value of financings in a 12-month period.
Even more notable? The fact that the exchange hit a promising number in the first quarter: 500 issuers (and growing), as cannabis, mining and technology companies chose the exchange for their primary listing. This is up 16% from the end of 2018, and up 47.5% compared to the first quarter of 2018.
“The rapid increase in issuers calling the Canadian Securities Exchange home is an undeniable vote of confidence in the trading and capital-raising environment we offer growth companies of all sizes,” said CEO Richard Carleton. “Strong trading liquidity and the efficiency of conducting financings as a CSE issuer are two aspects of our operations that we receive frequent feedback on, and the industry remains excited about our clearing and settlement facility. The CSE’s excellent start to 2019 maintains the momentum we have built in recent years by responding to the needs of issuers, investors, financial professionals, and other parties, both in Canada’s financial community and on a global level.”
READ: Canadian Securities Exchange enjoying best year yet; large cannabis financings a particular highlight
A few other notable highlights included trading volume in CSE-listed securities, which was 6.7 billion shares, a boost of 6.2% compared to the fourth quarter of 2018. Additionally, the value of shares traded in CSE listed securities totaled C$6.3 billion, up 7.8% from the previous quarter.
The aggregate market capitalization of CSE issuers rose 62.8% from the previous quarter to C$25.9 billion and financings completed by CSE issuers totaled C$716.7 million in Q1. For the annual period through March 31, 2019, it set a new record of C$5.2 billion, up 168% from the annual period a year earlier.
According to a CSE release, "The records set for aggregate market capitalization and financings on a trailing 12-month basis reflected not only the strong growth in issuer count but also a general rebound in share prices that began in January and took the CSE Composite Index 36.3% higher in the first three months of the year."
Cannabis most active sector
Cannabis was the name of the game for the CSE in the first quater, with cannabis and related issuers remaining the most active sector for capital raising, with gross proceeds of C$550.8 million through 81 financings, or 77% of all capital raised by CSE issuers.
In addition to this, companies in the diversified industry category raised C$92.3 million, or around 13% of all capital raised by issuers, and mining issuers completed financings, which totalled C$39.8 million, or 6%.
CSE has strong history and encouraging future
The CSE started operations in 2003, and was recognized as a stock exchange in 2004, with an aim to provide a modern and efficient alternative for companies looking to access the Canadian public capital markets.
The last year has seen significant financings, billion-dollar market caps, a steady stream of international listings, and financial institutions investing in CSE issuers. Fast-growing, well-capitalized companies and strong investor interest in them have helped to elevate the exchange, positioning it for a busy 2019.
Contact Katie Lewis at katie@proactiveinvestors.com