Aequitas Innovations Inc. launched the NEO Exchange to create “a better listing experience for public companies and investment products in Canada.”
As investor interest in the cannabis sector has heated up, more and more companies have raised capital through the public markets in Canada, leading to the existence of hundreds of publicly-traded cannabis stocks.
Why Companies List on the NEO Exchange
From an issuer’s point of view, it can often seem like there are very few options when it comes to a listing venue for their securities. NEO tries to change that with a “commitment to service and support for the companies and investment products that list” with them.
Perks of listing on NEO include enhanced liquidity, greater visibility, and lower fees. This not only benefits the companies that list on NEO, but it also helps to create a level playing field for investors too.
Cannabis Stocks on the NEO Exchange
So far, there are two fully-operational cannabis companies on NEO, along with two special purpose acquisition corporations, a.k.a. SPACs. In alphabetical order:
Canaccord Genuity Growth Corp.
Canaccord Genuity Growth Corp. (NEO:CGGC.UN) is a special purpose acquisition corporation that completed an IPO of over $40,000,000 CAD on September 21st, 2018. The company recently announced the proposed business combination with U.S. multi-state operator Columbia Care, LLC and a concurrent institutional private placement of $85,100,000 USD.
Cannabis Strategies Acquisition Corp.
Cannabis Strategies Acquisition Corp. (NEO:CSA.A) (NEO:CSA.RT) (NEO:CSA.WT) is a special purpose acquisition corporation that completed an IPO of $125,000,000 USD on December 21st, 2017 with the intention of acquiring one or more businesses in the cannabis sector. Subsequent to this, they have entered into an agreement to acquire a portfolio of five cannabis companies in the Eastern and Western United States. The company expects to realize revenue of $250-$270 million CAD by 2019 from these assets.
Halo Labs Inc.
Halo Labs Inc. (NEO:HALO) completed a reverse takeover, a.k.a. RTO, of Apogee Opportunities and started trading on October 3rd, 2018. Apogee Opportunities migrated to NEO on June 21st, 2018 from the TSXV and subsequently completed a $12 million CAD private placement on June 29th, 2018. Now, Halo Labs is a science-driven manufacturer of cannabis oil and concentrates.
Maple Leaf Green World Inc.
Maple Leaf Green World Inc. (NEO:MGW) listed on NEO on April 20th (4/20), 2018 after migrating from the TSX Venture Exchange. With Canadian operations in British Columbia and U.S. operations in Nevada, Maple Leaf Green World is creating a cross-border play on the rising North American cannabis industry.
While four cannabis-related listings are far fewer than the 100+ cannabis-related listings on the CSE, the NEO Exchange is only a few years old. The exchange officially started trading in March of 2015, but its rise to relevance is just getting started.
If you don’t think NEO is a rising power in the Canadian capital markets landscape, just know that over $1.25 billion CAD in trade volume took place on the NEO exchange today.
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