Canadian Securities Exchange Reports Strong Trading Activity, Record Financing Volume, IPOs and Continued Listings Growth in the First Half of 2020
̶ Major acceleration in trading and financing activity in May and June ̶
July 22, 2020 – Toronto, ON – The Canadian Securities Exchange (“CSE” or “the Exchange”) today announced positive performance metrics for the first half of 2020 (“H1 2020”). Trading and financing activity among CSE issuers remained strong amid the severe economic disruption related to the COVID-19 pandemic, with an acceleration of activity in May and June. The Exchange also continued to generate solid listings growth and lead all Canadian stock exchanges in initial public offerings (“IPOs”), while further expanding its content offerings and engagement across its digital platforms.
Key First Half 2020 Statistics
- CSE issuers completed 521 financings, a record for any six-month period in the Exchange’s history. Issuers completed 425 financings in the second half of 2019 (“H2 2019”), and 405 financings in the first half of 2019 (“H1 2019”);
- The capital raised by CSE issuers totaled $1.7 billion, compared to $1.0 billion in H2 2019 and $2.1 billion in H1 2019;
- Total trading volume was 10.74 billion shares, compared to 7.49 billion shares in H2 2019 and 11.88 billion shares in H1 2019;
- Total value of traded securities was $4.8 billion, compared to $7.3 billion in H2 2019 and $14.0 billion in H1 2019;
- The CSE had 591 listed securities as of June 30, 2020, an increase of 15% compared to 514 as of June 30, 2019; and
- The aggregate market value of CSE issuers was $18.7 billion as of June 30, 2020.
“We are pleased by the high volume of trading and financing activity we witnessed during this difficult period, especially in the last couple of months as retail investor activity increased sharply,” said Richard Carleton, CSE Chief Executive Officer. “It is gratifying to see our issuers raising capital across a wide range of industries, including businesses looking to address the major global challenges related to COVID-19. Our results demonstrate that the Canadian Securities Exchange is truly the best public market option for entrepreneurs seeking cost-effective growth capital.”
The CSE added 45 new listings in H1 2020. Fifteen of those listings came through IPOs, which amounted to 43% of all the IPOs completed on Canadian exchanges during the period, according to CPE Analytics. After excluding Capital Pool Companies and Special Purpose Acquisition Companies, 15 out of the 17 Canadian IPOs in H1 2020 were listed on the CSE, or 88% of the total.
The new listings on the CSE were highly diverse, comprising 23 mining listings, nine cannabis/hemp listings, six technology listings, and seven from other sectors.
Trading and financing activity increased in May and June of 2020 after being impacted by COVID-19 in prior months. A total of 4.49 billion shares were traded in those two months, accounting for approximately 42% of all trades during H1 2020. There were also 105 financings in May and 97 in June, making them the two most active months for financing during the six-month period.
Cannabis and hemp issuers led the way in financing during H1 2020, completing 147 financings that raised $1.26 billion. Those figures include Curaleaf Holdings, Inc.’s US$300 million (C$391 million) term loan facility, the single largest financing completed on the CSE during H1 2020. Mining issuers also continued to raise significant capital during H1 2020, completing 144 financings that raised $152.4 million. Other sectors with substantial financing activity included technology (81 financings that raised $69.7 million) and non-cannabis life sciences (37 financings that raised $68.0 million).
While the onset of the pandemic in March eliminated travel and physical gatherings, the CSE nonetheless maintained high levels of engagement with the investment community by providing webinars and virtual conferences on topics of interest, including events focused on the emerging Esports and psychedelics sectors. The CSE also continued to generate media content through outlets such as its blog, YouTube channel (CSE TV) and Instagram feed that features newly listed companies and insights from thought leaders in the capital markets. For instance, the CSE recently presented Cannabis Month, a multi-channel series of interviews with leading figures in the global cannabis sector that reached the Exchange’s growing digital audience on social media, video and podcast platforms.
“During one of the most volatile and uncertain periods any of us have lived through, the Canadian Securities Exchange delivered outstanding service for the investment community,” Mr. Carleton said. “Our operations continued without interruption, even as the vast majority of our staff worked remotely and had to navigate new conditions presented by the global pandemic. This performance underscores the talent of our team and the inherent strength of our platform.
“Going forward, we will continue to focus on attracting new listings across diverse industry groups while enhancing the experience for our issuers.”
Richard Carleton, CEO