Canadian Securities Exchange – CSE

Founded in 2001 as CNQ it was originally a trading and quotation platform. In 2004 it gained recognition by the Ontario Securities Commission as a stock exchange. The Canadian Securities Exchange (“CSE”) is either exempt or authorized by the other provincial securities commissions. In 2008 CNQ re-launched as the Canadian National Stock Exchange – CNSX. Following new ownership, the exchange changed its name in 2014 to its current name of Canadian Securities Exchange. CNSX Markets Inc. is the parent company.

In 2007 the company launched Pure Trading which trades securities listed on the TSX and TSXV. With the name change to CSE pure trading was combined with CSE.

The Canadian Securities Exchange offers companies simplified reporting requirements and reduces barriers to listing.

The CSE Composite Index launched in 2015 and provides an overview of the small cap market in Canada. The CSE25 index comprised 25 of the largest CSE companies by market capitalization.

The CSE Composite Index consists of 277 companies with a total capitalization of $22.3 billion. The average company size is $80 million. The CSE25 Index has a total market capitalization of $19.7 billion with an average market cap of $823 million.

Canadian Securities Exchange, CSE

CSE Listings

There are over 600 listings on the Canadian Securities Exchange with companies in Life Sciences which includes cannabis and psychedelic companies, mining, diversified industries, clean technology, oil & gas, and technology.   Below is a breakdown of listings:

Clean Technology
Diversified Industries
Life Sciences
Mining
Technology
Oil & Gas
Total
# of listings
5
92
201
187
113
12
610
% of Listings
0.82%
15.08%
32.95%
30.66%
18.52%
1.97%
100.00%
The Canadian Securities Exchange bases its listings model on streamlined regulation and enchained disclosure enabling companies to efficiently conduct their business while at the same time provide transparency to investors.

CSE Listing Requirements

Basic Requirements

For companies listing on CSE they have to be a reporting issuer in good standing with one of the provincial securities commissions.   The company must have, at the time of being public at least 500,000 freely tradeable shares owned by at least 150 public shareholders.  These shareholders must hold a board lot each and must, in total, represent 10% of the issued and outstanding shares.

As the Canadian Securities Exchange is a venture issuer exchange companies must provide at least 2 years of audited financial statements for listing.

Additional Requirements

Companies looking to list on the Canadian Securities Exchange must meet one of the following:

  • Operating company with revenue from the sale of goods or services. If the company is not profitable it must have assets or a business plan that shows a likelihood that it can sustain its operations and achieve its objectives.
  • A non-operating company must have the financial resources to carry out its business for 12 months after listing. There is a minimum requirement of $200,000 in working capital when the company lists and is at an advanced stage of development.
  • A company that invests in assets such as real estate or businesses but not active in the management of the investees is deemed an investment company. It must have minimum net assets of (i) $2 million of which 50% must be allocated to at least 2 investments or (ii) $4 million.

Natural Resource companies such as in mining or oil & gas must have a NI 43-101 (mining) or NI 51-101 (oil & gas) report on at least one of their properties.

CSE Listing and Monthly Maintenance Fees

Application Fee

CSE requires a non-refundable application fee of $5,000 upon submission of an application.

 

Initial Listing Fees

Listing Type
a. Existing Reporting Issuer, including:
Prospectus filer,Issuer moving from another exchange,
Unlisted Issuer in good standing, subject to (b)
b. Fundamental Change of a CSE Listed Issuer or any application for an issuer qualifying for listing through completion of a fundamental change transaction or a change of business.
Exception – For an existing CSE Listed Issuer undergoing a change of business with no major acquisition or change of control, the basic fee of $10,000 will apply.
c. Additional Review Fees –
An applicant not listed within three months of receiving conditional approval must pay an Additional Review Fee equal to half of the non-refundable portion of the listing fee. Following a review, the Exchange will issue an updated conditional approval letter.
An applicant not listed within 6 months of receiving conditional approval (without an updated conditional approval), must re-submit the non-refundable portion of the listing fee.
Balance of Fee ($)
10,000
15,000

2,500


5,000
Total Initial Listing Fee ($)
15,000
20,000

Monthly Maintenance Fee

Market Capitlaization
Less than $10 million
$10 million to less than $25 million
$25 million to less than $100 million
$100 million and above
Monthly Fee ($)
750
1,000
1,250
1,500
Annual Cost ($)
9,000
12,000
15,000
18,000
CSE has the lowest listing and ongoing fees of any stock exchange in Canada.  As the other three stock exchange their other fees for listing as well as well the cost of being

In summary, as a venture issuer exchange with a streamlined regulation and enhanced disclosure model Canadian Securities Exchange is a destination for many growth and innovative companies. As Canada has four stock exchanges companies have a choice of stock exchanges to list in addition to CSE there is the Toronto Stock Exchange – TSX, the TSX Venture Exchange – TSXV, and the Neo Exchange – Neo.   If you would like to learn more about listing your company on CSE or another stock exchange, please fill out the form to the right.  One of our team members will contact you shortly.