4 Things You Should Know

Content provided by Michael Kousaie, Head of Business Development – Technology, Toronto Stock Exchange and TSX Venture Exchange.

As you already know, British Columbia’s tech network is highly dynamic and the province has one of the best start-up ecosystems in the world. But what about the technology and innovation companies, including many BC-based ones, listed on our public markets? Toronto Stock Exchange (TSX) and TSX Venture Exchange’s (TSXV) technology and innovation sector—comprising technology, clean technology and renewable energy, and life sciences—continues to thrive. Here are four things you should know about the sector’s performance over the last six months. Also see which BC tech companies raised funding in the capital markets over this period.

Outperforming global indices. The broad Canadian market has been one of the few stock markets globally to show positive returns in 2016 (as of June 30); and our main indices (the S&P/TSX Composite and the S&P/TSX Venture Composite) have outperformed all major global indices in 2016.

Tech companies continue to go public. Since the start of 2016, 17 new technology/innovation companies have gone public on TSX/TSXV (to the end of June) – this represents nearly 60% of all corporate IPOs and new listings on our exchanges. These companies represent a mix of businesses from the technology (9), life sciences (6), and clean tech (2) sectors. They also include a mix of smaller companies (14 listing on TSXV) and larger businesses (3 listing on TSX). The activity in the technology and innovation sector in 2016 continues a multi-year trend on TSX/TSXV. Watch this brief video, which condenses the last seven years into 85 seconds.

But where are the large Initial Public Offerings? Large and high-profile tech IPOs and follow-on financings on TSX have been notably absent this year. In this respect, Canada has followed the lead of the U.S. market, which has also seen a significant fall in IPO activity. For many larger companies, this has allowed more time to prepare for an eventual TSX IPO (timing the market is difficult – but getting prepared to move when market windows open is easier). For many smaller companies, though, this has not had a significant impact as most small companies go public in Canada via a path other than an IPO.

Tech index performing well. The S&P/TSX Capped Information Technology Index has outperformed the Canadian benchmark index over the last 1-, 3-, 5- 10-year periods (to the end of June). The same index has also outperformed the S&P 500 Index over the last 1-, 3-, 5- 10-year periods (also to the end of June).

The key takeaway is that Canada’s technology and innovation sector has continued to perform well in 2016 and we are hopeful that the momentum will continue to build for the balance of the year. We’re also hopeful that improving market conditions will eventually support more large-cap IPOs in the sector.

BC Tech & Innovation Companies:

Who Raised What on TSX/TSXV in H1 2016

TSX-Listed Company


Type of Financing

Amount Raised

Essa Pharma Inc.


Private Placement

$27.0 M

Aurinia Pharmaceuticals Inc.


Private Placement

$9.1 M

Synex International Inc.


Private Placement

 $0.534 M

TSX Venture-Listed Company


Type of Financing

Amount Raised

TIO Networks Corp.


Private Placement

$5.1 M

VersaPay Corporation


Public Offering

$4.6 M

Aequus Pharmaceuticals Inc.


Public Offering/Private Placement

$2.6 M

Zecotek Photonics Inc.


Private Placement

$2.0 M

Legend Power Systems Inc.


Private Placement

$1.7 M

MediaValet Inc.


Private Placement

$1.5 M

3TL Technologies Corp.


Public Offering/Private Placement

$1.3 M

BriaCell Therapeutics Corp.


Private Placement

$1.3 M

AnalytixInsight Inc.


Private Placement

$1.1 M

Nexoptic Technology Corp.


Private Placement

$1.1 M

Solegear Bioplastic Technologies Inc.


Private Placement

$0.986 M

Sirona Biochem Corp.


Private Placement

$0.830 M

Nano One Materials Corp.


Private Placement

$0.823 M

BTL Group Ltd.


Private Placement

$0.619 M

Replicel Life Sciences Inc.


Private Placement

$0.583 M

Formation Fluid Management Inc.


Private Placement

$0.434 M

Greenbriar Capital Corp.


Private Placement

$0.350 M

Tinkerine Studios Ltd.


Private Placement

$0.330 M

Pacgen Life Science Corporation


Private Placement

$0.318 M

Greenpower Motor Company Inc.


Private Placement

$0.300 M

SmartCool Systems Inc.


Private Placement

$0.300 M

Verisante Technology Inc.


Private Placement

$0.200 M

E.S.I. Environmental Sensors Inc.


Private Placement

$0.180 M

Earthworks Industries Inc.


Private Placement

$0.107 M

Med Biogene Inc.


Private Placement

$0.050 M

Note: “Amount Raised” includes all financings carried out by the company in the first half of 2016.

All figures in Canadian dollars.

This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this article and we are not responsible for any errors or omissions in or your use of, or reliance on, the information.

This article is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied on for such advice.

The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this article.

©2016 TSX Inc. All rights reserved. Do not sell or modify this document without TSX Inc.’s prior written consent.

“S&P” is a trademark owned by Standard & Poor’s Financial Services LLC, and “TSX” is a trademark owned by TSX Inc.

Toronto Stock Exchange, TSX, TSX Venture Exchange and TSXV are the trademarks of TSX Inc.