WHO AND HOW COMPANIES LISTED ON CNQ IN 2007
In 2007 there were 32 new listed companies on CNQ. These new listings represented diverse industries including mining, oil and gas, automotive and biotechnology. The largest sector is mining and mineral exploration but CNQ is particularly well adapted to industrial and technology businesses, whether domestic or foreign, because its streamlined regulation model facilitates raising capital quickly and efficiently.
CNQ has listed to date over 100 companies in various industries. Each company has a page of information on the CNQ website called a Disclosure Hall which covers both market and corporate information.
Total market capitalization of CNQ companies at year end exceeded $1 billion with a total of over $225 million dollars raised this past year by listed companies.
Following are descriptions of the various methods that companies employed in order to become listed on CNQ:
1. Initial Public Offering (IPO) - This type of prospectus is issued when a company offers to sell its shares to the public for the first time, and is otherwise known as an offering prospectus or a primary offering. It is filed with and reviewed by a securities commission in Canada.
CNQ had 10 IPOs in 2007 representing 31% of all new listings last year.
CNQ 2007 IPOs
Avanti Mining
Continent Resources
Cougar Minerals
Cuervo Resources
Lands End Resources
Minerva Minerals
Nass Valley Gateway
Stealth Energy
Triple Dragon Resources
Trustmark Auto Group
- Reverse Take Over (RTO) - This is a method of going public whereby a public company (a reporting issuer) issues shares to acquire a private company with the result that the owners of the private company have a majority of the shares or a controlling interest, in the reporting issuer. The reporting issuer may be active or inactive. Many of these public companies have stopped operating and have no assets but still maintain their reporting issuer status. As a result, once the transaction is complete the company carries on the business of the private company.
Two companies listed on CNQ following a reverse take over in 2007.
CNQ 2007 RTOs
Immunall Science
Talmora Diamond
3. Non-Offering Prospectus (NOP) - This type of prospectus encompasses the same disclosure requirements as an offering prospectus but without the company offering to sell its shares to the public. It also must be cleared by a securities commission in Canada. The purpose of a non-offering prospectus is primarily to become a reporting issuer – which is a necessary prerequisite to becoming a listed company. It is also known as a prospectus without distribution. Companies that already have a large number of shareholders may obtain a listing following completion of a non-offering prospectus.
CNQ had 7 companies list via a non-offering prospectus last year, representing 22% of all new listings.
CNQ 2007 NOPs
Alliance Mining
Cayenne Gold Mines
La Imperial Resources
Onco Petroleum
OnePak
Redzone Resources
Toro Resources
4. Existing Reporting Issuer - These are companies that are already reporting issuers with one of the provincial securities commissions in Canada and have fulfilled CNQ’s listing requirements. At the time of listing they were not listed on another exchange in Canada.
Nine companies that were already existing reporting issuers listed on CNQ in 2007, representing 28% of all new listings.
CNQ 2007 Existing Reporting Issuer
Cadillac Ventures
Col Resources
Great Bear Uranium
McLaren Resources
Nexia Biotechnologies
Trevali Resources
Valterra Resources
Veraz Petroleum
Zab Resources
5. Switch from TSXV - These are companies that delisted from the TSX Venture Exchange and listed on CNQ.
In 2007 four companies listed on CNQ from the TSXV, representing 13% of new listings.
CNQ 2007 Existing Reporting Issuers
Excalibur Resources
Mantis Minerals
Quinsam Capital
Warwick Communications
The pie graph below provides the breakdown of the methods that companies used to list on CNQ in 2007.
As Canada’s new exchange for emerging companies, CNQ is a stock exchange fully recognized under the same rules and regulations as other Canadian exchanges, but much more cost effective. CNQ has a modern streamlined regulatory model, making it much more efficient for public companies. Due to reforms in securities laws and regulations over the past 5 years, the National Instruments and Rules govern most aspects of going public and continuous disclosure. In response, CNQ has eliminated duplication of documents and disclosure already required under the new more substantial rules, thereby focusing only on stock exchange listing requirements, saving months of paper work, with a commensurate reduction in professional fees.
To learn more about listing on CNQ take our Going Public Interactive Questionnaire or contact a listings development representative.
