The CNQ Advantage - Canada’s New Stock Exchange
CNQ is the first full stock market approved by the Ontario Securities Commission in 70 years and has many benefits for emerging companies that simply don’t exist with other stock markets.
Five of the main benefits of listing on Canada’s New Stock Exchange are:
- Cost Effectiveness
- Enhanced Disclosure
- Streamlined Regulation
- Central Auction Market
- Approved Market Maker Program
CNQ is cost efficient with Initial Listing Fees at only $10,000. Rather than a transaction based model, CNQ charges a flat monthly fee of $300 that includes unlimited transactions. Total fees for listing on CNQ for the first year are $13,600, and only $3,600 per year after that.
The following chart is a comparison of fees for the TSX-V, TSX and the CNQ based on a company with a market capitalization of $25,000,000 with an additional listing of 2,000,000 shares at $1.50 per share.
| Total Fees | TSX-V | TSX | CNQ |
|---|---|---|---|
| Initial Listing | $30,000 | $40,750 | $10,000 |
| Additional Listing | $15,500 | $6,200 | - |
| Sustaining Fee | $5,500 | $12,000 | $3,600 |
| Total | $51,000 | $58,950 | $13,600 |
As you can see CNQ fees are 73% lower than the TSX Venture and 77% lower than the TSX.
CNQ’s Enhanced Disclosure enables companies to focus on their business while at the same time providing investors with timely information on the Company’s activities. You can do it easily and quickly and focus on building your business!
CNQ’s Streamlined Regulatory System ensures there is never any waiting for transaction approvals or reviews. CNQ public companies are able to take advantage of opportunities faster and without the associated high costs and time delays of other stock markets. CNQ listed companies can close a financing transaction within 24 hours simply by posting the appropriate form on the CNQ website and, if the transaction is material, issuing a press release.
Structurally, CNQ trading is facilitated by the combination of a central auction market with the added benefit of enhanced trading liquidity provided by a Market Maker Program.
A central auction market is a stock exchange trading system that provides a continuous auction in securities of its listed companies. It has been proven around the world as the most efficient means of trading stock. It is a system that focuses on “time priority” in all trades, which results in all investors being treated fairly.
Enhancing this system are the Market Makers, who are professional traders assigned to provide liquidity. These traders typically account for approximately 25% of all trades on the buy or sell side. In fact, half of CNQ listed companies have more than one market maker, and some have up to four professional traders “making a market” for competitive access to their stock.
These features combine to make CNQ the stock market destination of choice for more and more innovative companies every day. If you are thinking of going public in Canada we would be pleased to assist as your gateway to the Canadian capital markets. Please contact our Listings Development representatives with any queries you may have.
