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In remarks to the St. John’s Board of Trade, TSX Group CEO Richard Nesbitt encouraged Newfoundland companies to consider Canada’s capital markets as an alternative for raising capital and building on the number of small and medium sized public companies from the province.
“This province, and especially this city, are increasingly entrepreneurial. The mining, energy and infrastructure developments that have taken place in this province, and loom ahead, have created a marvellously warm and fertile environment for entrepreneurs,” said Mr. Nesbitt. “And we at TSX Group can provide help in making the transition from small private firm to growing public company with our mentoring programs, our workshops, our strong standards, and market tools like our Capital Pool Company Program™. Last year, more than $60 million was raised by CPCs™ across Canada. The CPC is suited to Newfoundland. I would certainly recommend that we open a discussion on the CPC program in Newfoundland and Labrador. It puts together investors with capital markets experience and entrepreneurs who have ideas, energy and ambition but need help.”
Mr. Nesbitt pointed out that large corporations have multiple sources of capital – public markets, banks and, increasingly, deep pools of private capital. “But it’s the smaller and medium sized enterprises that generate the new jobs and the new products that are so important in the provinces that are working to diversify their economies, like Newfoundland,” added Mr. Nesbitt.
Small and medium sized companies are the building blocks of big companies. On TSX Group’s two exchanges, there are more listed companies than on any other exchange group in the industrial world – 3800 as of the end of August. And to show how efficient the markets are for these companies to raise capital, recent World Federation of Exchanges’ statistics show that TSX Group exchanges together are now fourth in the world in raising capital – behind only London, New York and Hong Kong, where China’s companies are increasingly turning to raise capital.
TSX Group and Newfoundland Issuers
- There are 11 companies based in Newfoundland -- 6 are listed on TSX Venture Exchange with a total market capitalization of $318.3 Million.
- Five issuers are listed on Toronto Stock Exchange with a total market cap of $3.5 billion.
- Newfoundland issuers have done 8 financings on TSX Venture Exchange from January to August 2006 for a total of $8.3 Million raised. They were all private placement financings.
Click here for a copy of Mr. Nesbitt’s remarks.
About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange serving
the public venture equity market as well as Natural Gas Exchange (NGX), a
leading North American exchange for the trading and clearing of natural gas and
electricity contracts. TSX are the initials attached to the core equity
operations of TSX Group (www.tsx.com): Toronto Stock Exchange, TSX Venture
Exchange, TSX Markets, TSX Datalinx, TSX Technologies. TSX Group is
headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary
and Vancouver.
