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TSX Venture Exchange

“Listing on the TSX Venture Exchange is the right choice for small and early-stage companies looking to access public venture capital to facilitate their growth. Companies listed on the TSXV are provided with the opportunity to gain a solid foothold in the public market, with the potential to work towards graduation to the TSX and access to larger pools of capital. The TSXV has listing requirements that are tailored to a company’s industry sector, stage of development, financial performance, and operational resources”.

From the TSX Venture Exchange website

Drumlin Consulting is a supporter of the TSX Venture Exchange (“TSXV”) and the use of the TSXV for its trading and financing potential . Neither Jon Constable nor Drumlin Consulting has a business, fiduciary, or any other relationship with the TSX Venture Exchange, or with any of its related entities or parties.

My experience dates  to the time of the Junior Capital Pool Corporation (“JCP”) initiative managed by the Alberta Stock Exchange. Today the TSXV has carried the JCP financing option forward as the, updated and much advanced, Capital Pool Corporation (“CPC”).

Drumlin believes that, for reasons not necessarily helpful to startups and young companies, financing and stock trading activities have become too limited as respects new companies. Manifestations of this being so, include the significant reduction in the number of listings on stock exchanges generally and the movement of venture capital into large venture capital funds or pools. From the venture capital point-of-view this in part resulted from the Quixotic search for the elusive “home run”. Some Venture Capital (“VC”) firms hold out that unless a startup could demonstrate that it would become a billion-dollar company, that VC firm was not interested in their situation.

I ask the question; Is there something unattractive about a $5 million investment turning into $50 million, or $100 million? For VCs with very large sums to invest of course it may not be attractive, but not all VCs are limited to investing large amounts. The same line of thought extends to going public. While the large VCs happily participate in significant IPOs on a major exchange, others find it attractive to use an intermediate step such as the CPC option offered by the TSXV.

Drumlin's Relationship to theTSXV

Drumlin aims to work with companies and the exchange in two ways: to advise young companies regarding their business needs and to hold out the financing option presented by the TSXV; and to follow and analyze a small group of TSXV listed companies. Based on the latter endeavour, Drumlin will from time-to-time post brief reports and investment recommendations on a few companies. The research will be conducted independently, will not be paid for, and if conflicts of interest exist, they will be disclosed in the reports associated with the recommendations. Drumlin’s focus will be on these TSXV sectors: TechnologyClean Technology and Life Sciences.

Drumlin's Commentary/Updates page provides information relevant to the world of startups and young companies, and to matters relevant to that environment, including the stock exchange. And as felt necessary the blog space will be directed at life and environmental matters.

As noted above, neither Jon Constable nor Drumlin Consulting

has any relationships with the TSXV.