(July 14 – 16:00 ET) – Led by a strong showing in the technology sector, more than $1 billion was raised for new ventures on the Canadian Venture Exchange in the first half of 2000, the Exchange announced today.
This represents an increase of more than 75% over the combined financing figures for the new exchange’s predecessors, the Vancouver Stock Exchange and the Alberta Stock Exchange, for the same period a year ago.
Technology companies raised $667 million or 58% of the $1.142 billion total. Of the 20 largest January to June financings exceeding $7 million, 14 were completed by internet, telecommunications, software, life science research and other technology companies. The largest financing in the period – $50 million – was recorded on May 24, 2000 by Ezenet Corp. cl A, a Tier l company that develops and markets software.
From January 1 through June 30, 2000, resource companies accounted for 23% of the total funds raised, with mining companies raising $184 million and oil & gas financings at $81 million.
“Venture capital investing in Canada has grown at a remarkable rate, as recent statistics published by the Canadian Venture Capital Association have shown,” says Bill Hess, CDNX president and CEO. “The public market venture capital alternative plays a vital role as mentor and incubator to start up companies. Confidence in our market has been fueled by the early success of CDNX. Despite the recent correction among technology stocks, Canadian venture capital levels remain strong, with higher dollar value financings on the increase.”
Private placements dominated the equity financing numbers, with 921 completed during the period for a total of $1.071 million or 94% of all financings. Initial public offerings accounted for $60 million and an additional $11 million was raised via secondary public offerings.
-IE Staff