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:
| Listings | Market Capitalization | Financings |
| 1,839 total companies listed | $23 billion market capitalization | 937 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
| Sector | Total Listings | New Listings | Equity Raised |
| Mining | 60% | 24% | $796 million |
| Oil and Gas | 12% | 3% | $410 million |
| Diversified Industries | 6% | 13% | $388 million |
| Technology | 6% | 16% | $250 million |
| Clean Technology & Renewable Energy | 4% | 6% | $45 million |
| Life Sciences | 4% | 12% | $219 million |
| CPC | 3% | 19% | not published |
| Financial Services | 2% | 4% | $480 million |
| Real Estate | 2% | 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.