By James Langton
(October 19 – 19:00 ET) – Equity financings completed by the Canadian Venture Exchange have surpassed $1.96 billion so far this year. The CDNX attributes these results to the high demand for venture capital among CDNX-listed technology companies, and a growing national recognition of the CDNX as a viable venture market.
Technology companies accounted for 57% of total CDNX financings for the first nine months of 2000, with mineral exploration companies accounting for 15% and oil and gas companies accounting for 8%.
The largest financings completed in the third quarter were: Turbo Genset Inc. which raised $70 million, Global Light Telecommunications Inc. with a US$67 million deal, a $50 million deal for Cell-Loc Inc., and fund dealer consolidator BRM Capital Corp., which raised $40 million.
Third-quarter results showed that 13 CDNX listings graduated to the Toronto Stock Exchange, a total of 37 this year, representing 46% of the TSE’s new listings in 2000.
During the quarter, 51 new companies began trading on the CDNX, bringing the total number of new listings for the year to 130. Of these new listings, 82 are capital pools, 29 are resource-based companies and 19 are industrial -based companies. So far, 20 reverse takeovers have occurred in 2000.
“These past nine months have demonstrated that the CDNX is clearly a significant source of venture capital for promising start-up companies, as well as a stepping stone for companies to graduate to senior exchanges,” says Bill Hess, CDNX president and CEO.