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*NEWS: Benefits of Listing on the Canadian Stock Exchanges

In the last six months, several California tech companies – including one with an outpost in Irvine – have chosen to go public on a Canadian stock exchange known as the TSX Venture Exchange.

Nubeva Technologies (TSXV:NBVA) created software to facilitate the networking aspect of cybersecurity in the cloud. The company has HQ in San Jose and outposts in Orange County and Australia. It raised about $8 million through its IPO. Nubeva executives here in OC noted the benefit of listing on the TSXV as being more cost-effective. (see related article about them here)

Universal mCloud Corp (TSXV:MCLD) is an internet of things company that provides real-time and historical data, with advice based on analytics and diagnostics. The company, with HQ in San Francisco, listed on TSXV in October and just completed a $2.1 million financing round in March.

Novoheart listed after a reverse takeover. Novoheart Holdings Inc., formerly Woodrose Ventures Corp., acquired all shares of Novoheart Holdings Ltd., raising approximately $7.1 million in the process. Novoheart, with HQ in Hong Kong, is a biotech company using stem-cell technology to tackle heart disease. It opened its first U.S. location at the Cove last fall. The Cove is the physical space of UCI’s innovation center, Applied Innovation

The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) provide alternatives for companies to access equity capital and provide the benefits of being listed on a leading global exchange with “integrity, liquidity and opportunity,” according to Delilah Panio, vice president, capital formation for Southern California. By going public in Canada, companies can also realize these benefits:

facilitate growth by using stock as M&A currency

increase visibility and prestige

provide liquidity for shareholders and diversify shareholder base

create employee incentive mechanisms.

What is unique about TSX and TSXV is that companies can go public at a significantly earlier stage and with reduced time and costs than is typical on U.S. exchanges, such as NYSE and Nasdaq.

U.S. companies have several options to raise capital, from venture capital and private equity to equity crowdfunding to ICOs. As a unique source of “public venture capital”, TSXV offers an alternative, especially to venture capital, which may not be viable or attractive to U.S. growth companies. For those companies, a path is to list on TSXV, access growth capital, graduate to the senior TSX market and when ready, interlist on NYSE or Nasdaq.

Info on TMX Group Inc. the public parent company for Toronto Stock Exchange and TSX Venture Exchange:

Established: 1852

Market cap: $2.896 trillion (Feb. 28, 2018)

No. of listings: 3,166 (Feb. 28, 2018)

Location: Toronto, Ontario, Canada

Volume: 23 million shares traded in 2017

[More data available in our Guide to Listing: https://www.tsx.com/ebooks/en/2018-guide-to-listing/]

TMX Group’s corporate mission is to power growth for clients across capital and commodity markets around the world. The group recently re-hired Panio, who had previously worked for TMX for 10 years in business development in its Toronto HQ. She’s fully immersed in the Orange County, Los Angeles and San Diego business communities and would like to meet with SoCal companies interested in learning more about listing on TSX or TSXV.

Delilah Panio, vice president, capital formation for Southern California

For more information on listing on TSX or TSXV, visit www.tmx.com or contact at delilah.panio@tmx.com

 

 

About The Author

Deirdre Newman is a long-time journalist, who's covered OC startups for a few years.

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