While most Canadians own large-cap financials and energy stocks either directly or through managed funds, there’s a lot more to the domestic market than big banks and oil operations. A number of fast-growing, cutting-edge companies call Canada home and an increasing number of them are selling shares on TSX Venture Exchange (TSXV).
Since 1999, TSXV has been helping smaller-cap companies—the average market-cap is $17 million—raise money on the public market. However, with 2,245 names on the Exchange, it can be hard to know which businesses offer the most potential.
The TSX Venture 50 is an annual ranking of top performers on TSX Venture Exchange. The ranking was created in 2005 to help bring greater awareness to some of the success stories on TSXV. Companies that make the list have been selected based on four equally weighted criteria: market capitalization growth, share price appreciation, trading volume and analyst coverage. Each of the TSX Venture 50 companies has performed well relative to its peers.
“TSX Venture Exchange operates a well-regulated marketplace for early stage companies,” says John McCoach, President of TSX Venture Exchange. Companies listed on TSXV find an environment well-suited to their stage of development – whether they are in pre-production or more mature. Nearly half of the companies that made the Venture 50 list saw their share price climb by more than 100% in 2012, while 46% of the businesses saw their market cap increase by more than 200%. The top company in the Mining sector of the 2013 TSX Venture 50, Zenyatta Ventures Ltd. (TSXV:ZEN), a graphite mining operation, saw its share price rise by a whopping 445% and its market cap grew by 463% in 2012.
The TSX Venture 50, which McCoach says, “helps raise awareness of the venture marketplace among Canadian and international investors,” is also often a stepping-stone to the senior market. As venture companies grow, many develop to the point where they meet the listings standards of Toronto Stock Exchange (TSX) and they apply to graduate to TSX. Since 2005, 25% of the TSX Venture 50 companies have gone on to list on the senior exchange.
There is something else that the TSX Venture 50 offers these companies: a chance to pat themselves on the backs. “It’s a significant milestone for many of these companies,” says McCoach. “Companies that make the list are proud to celebrate their achievements.”
MEET THE CEO OF THE TOP COMPANY IN EACH SECTOR
Technology & Life Sciences
iCo’s ability to manage phase 1 and 2 testing for larger biotechs is its ticket for growth says Andrew Rae, co-founder, president and CEO.