CSE and OTC to Attract Foreign Issuers - IPO in Canada; Secondary Market Access in U.S.
The Canadian Securities Exchange (CSE), a Canadian listing exchange recognized as a Qualified Foreign Exchange in the U.S., and OTC Markets Group (OTC), operator of financial markets for 10,000 U.S. and global securities, have announced that they will launch a strategic alliance that will offer a new program for foreign issuers looking for an efficient IPO experience in Canada and cost-effective access to North American investors.
Under the alliance, foreign companies would raise capital through an IPO on the CSE and then broaden their reach to U.S. investors through OTC Markets Group’s dealer network. Securities would then be traded on both the CSE and over-the-counter market in the United States, allowing for increased liquidity and access to funding.
According to the CSE and the OTC: “The alliance will offer international companies the ability to raise capital via an IPO in Canada, build their North American brand and gain secondary access to the broad pool of U.S. investors. Investors and the broker dealer community will benefit from greater information, increased global investing opportunities and more efficient trading of the shares of international issuers.”
As a Qualified Foreign Exchange, a listing on the CSE pre-qualifies many of its listed companies as candidates to apply to trade on OTC Markets' premium OTCQX and OTCQB Markets.
Invitation for Discussion:
If you are looking to IPO in Canada or the United States, please do not hesitate to contact one of the lawyers in the business law group at Shea Nerland LLP.
Note that the foregoing is for general discussion purposes only and should not be construed as legal advice to any one person or company. If the issues discussed herein affect you or your company, you are encouraged to seek proper legal advice.