ARE YOU ALREADY LISTED ON ANOTHER STOCK MARKET?

Your corporation’s shares are a powerful product that your company can market to the world and will serve as an entrée into international markets both for capital and commercial activity. Therefore, why limit yourself to just one capital market? Discover where, when, and why cross-listing otherwise known as inter-listing can be beneficial to companies and in some cases can be more trouble than its worth. Inter-listing whether on the Australian Stock Exchange (“ASX”), New York Stock Exchange (“NYSE”), or the Nasdaq is a decision that has to be carefully weighted. In addition, we also discuss if you should be cross-listed in Canada and the US.

Cross-Listing on a Canadian Stock Exchange

Are you listed on the:

We invite you to consider listing in Canada as an additional market for your shares. We can ensure an easy transition that is both cost-efficient and timely, will increase your shareholder base and open up a substantial new capital pool. In addition, it will also give your products/services exposure into a mature consumer market, as well as provide a natural gateway to the consumer market in the United States.

Publicly listed companies have raised billions of dollars on Canadian Stock Exchanges. For instance, a cross-listing can offer value for money, trading advantages, and a substantial increase in market awareness.

For companies listed on international exchanges as mentioned above, without a presence in Canada or the US, a cross-listing across significant times zones can be beneficial to the company and its shareholders.

With regards to companies that have a quotation on OTCMarkets, who cannot meet the listing requirements of the NYSE or NASDAQ, a listing on a Canadian exchange can strengthen their offering to investors not only in Canada but also in the US. In conclusion, by having an ‘anchor’ listing on a regulated stock exchange along with the OTC Markets quotation the company shows stronger governance with the added stock exchange regulation.

Benefits of Cross-Listing your Company in Canada

Financial Gains

• LOWER COST OF CAPITAL
  Through an inter-listing on a Canadian exchange, your company can lower its cost of capital by reaching more investors. As a result, this broader reach will reduce the market risk premium because of the higher level of investor diversification amplified on a stock exchange.
• SECONDARY MARKET FOR ACQUISITIONS
  By establishing an anchor listing in Canada, you are able to benefit from a secondary market of your shares in Canada that can be used for North American acquisitions, as well as, improve retention and potential recruitment of North American managers and employees.

Trading

• LIQUIDITY
  A cross-listing will contribute to share value by providing liquidity to Canadian investors and increasing exposure to the Canadian capital markets of your shares.
• TRADING VOLUME
  Through a cross-listing an increase in total trading volume and market depth will emerge for your company’s shares.
• PRICE DISCOVERY
  In addition, an advantage of a cross-listing in Canada is that it facilitates the process of assessing share value at the beginning of a trading session in two different markets in two different times zone. For instance, at the opening of trading on both the Canadian exchange and your ‘home exchange’ prices will be less volatile for your shares as a result of being traded on two exchanges.

Market Awareness

• INCREASED SHAREHOLDER BASE
  A cross-listing will bring your shares closer to Canadian investors as it increases investor awareness, corporate visibility, and information flow across North America. For instance, this will also allow the market to make faster, more accurate decisions.
• INVESTOR/CUSTOMER RECOGNITION
  Your company can generate increased investor and customer recognition with a cross-listing. Furthermore, a cross-listing will increase media coverage for investors and potential customers as well as boost the number of analysts covering your stock which tends to improve the accuracy of earnings forecasts. Additionally, with the expanded investor base the demand for the shares will rise.
• BONDING EFFECT
  As Canada has a high investor protection rating at 7.7(¹), by bonding with the Canadian market through an anchor listing in Canada, your company will be able to show the market that its regulatory disclosure has been reviewed by two additional regulatory agencies– specifically the securities commission in Canada and the exchange, therefore, re-enforcing the company’s commitment to investor protection.