TSX and TSXV A Capital Opportunity. Disclaimer. Prepared for: 2010 ACA Summit Date: May 6, 2010 Location: San Francisco, CA

Transcription

1 TSX and TSXV A Capital Opportunity Prepared for: 2010 ACA Summit Date: May 6, 2010 Location: San Francisco, CA Disclaimer This document is for information purposes only and is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TMX Group Inc. and its affiliates do not endorse or recommend any securities referenced in this document. Please seek professional advice to evaluate specific securities. While the information herein is collected and compiled with care, neither TMX Group Inc. nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, business or financial purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Inc. and/or any of its affiliates as a result of any errors or inaccuracies herein or any use or reliance upon this information TMX Group Inc. 2 1

2 Outline 1. TSX and TSXV Market Overview 2. Overview of the Clean Technology Sector 3. Deal Structures 4. Case Study 3 TMX Group s Equity Exchanges Support a Diverse Issuer Base Number of Issuers by Sector Includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3640) 4 As at December

3 Access to Capital: All time record year for financing on TSX Toronto Stock Exchange and TSX Venture Exchange Total Financings (C$Billions) * Toronto Stock Exchange TSX Venture Exchange *TSX Venture Exchange commenced operations on November TMX Group Serves Companies at all Stages of Growth Market capitalization Toronto Stock Exchange and TSX Venture Exchange 93% As at December 31, 2009 Unique feeder system 35% 32% 33% % of TSX Issuers % of TSXV Issuers 451 graduates + 73 M&A* 6% 1% 512 <$50 Million 2036 $ $250 Million >$ Million Issuers Issuers Issuers 127 Issuers 15 Issuers *From January 1, 2000 December 31, 2009 Toronto Stock Exchange issuer base: 1,462 issuers, ~$1.8 trillion market cap TSX Venture Exchange issuer base (excludes NEX): 2,178 issuers, ~$35.8 billion market cap 6 6 3

4 International Investment Community Trades on Toronto Stock Exchange 25 International Brokers including: Barclays Capital Citigroup CSFB Deutsche Bank Goldman Sachs HSBC JP Morgan Macquarie Capital Markets Merrill Lynch Morgan Stanley Raymond James Thomas Weisel State Street UBS 80 Canadian Brokers including: BMO Nesbitt Burns Canaccord Adams CIBC World Markets GMP Securities RBC DS Scotia Capital Markets TD Securities National Bank Financial Toronto Stock Exchange Volume and Transactions ( ) Transactions CAGR 37% Volume CAGR 14% Volume (B) Number of Transactions (M) ~35% of daily trading originates from International brokers 50 0 Outline 1. TSX and TSXV Market Overview 2. Overview of the Clean Technology Sector 3. Deal Structures 4. Case Study 8 4

5 TSX Clean Technology Market at March 31, 2010 $19B Total Market Cap Low Impact Material & Products 19% 127 Clean Technology Issuers Waste Reduction & Water Management 20% Renewable Energy Technology & Manufacturing 16% $1.5B Equity Capital Raised During % of TSX Clean Technology Issuers Graduates of TSXV Renewable Energy Production & Distribution 21% Energy Efficiency 24% 9 Strong Growth in Key Market Metrics Strong analyst coverage combined with growth in trading and liquidity provides positive market fundamentals for Clean Technology companies to finance and grow. Analyst Coverage Avg. Analyst Coverage for Clean Technology Companies by Market Cap Volume of Shares Traded Millions of Shares Traded in the Clean Technology Sector 3,705 3,841 2, ,149 1,446 < >1000 Market Capitalization (C$ Millions) Source: Capital IQ

6 Outline 1. TSX and TSXV Market Overview 2. Overview of the Clean Technology Sector 3. Deal Structures & the CPC Program 4. Case Study 11 Legal Structures for Going Public Transactions TMX Equity markets embrace multiple mechanisms for go-public transactions 12 6

7 Capital Pool Company (CPC) Program Since inception: Over 2050 CPCs were created 80% have completed their QT over 1600 companies 329 Graduates now trade on TSX 96 of the grads were CPCs 13 Benefits of the CPC Program 1. Potential to add Directors and Long-term Investors to the Companies Board; 2. Clean Corporate Shell created for purpose of completing a Qualifying Transaction; 3. Enhances Flexibility for the Financing; 4. Can have a lower risk profile and cost structure than an IPO; 5. Opportunity to work with a management team that has been through the process before. 14 7

8 Share Price (Daily) Volume (Daily) Outline 1. TSX and TSXV Market Overview 2. Overview of the Clean Technology Sector 3. Deal Structures & the CPC Program 4. Case Study 15 BioExx Specialty Proteins Ltd. Technology company focused on the extraction of oil and high-value proteins from oilseeds for the global food market. #1 Ranked Clean Technology Company and Pick of the Street Venture 50 TM Date of Listing Graduated from TSX Venture Exchange to Toronto Stock Exchange on January 22, 2010 Market Capitalization Analyst Coverage $365.3 million as of March 31, Canadian Analysts / 1 US Analysts (Source: CapitalIQ) BXI 2.5 8m 2.0 Graduation to Toronto Stock Exchange January 2010 $15 M PP December m 6m Financing, Price & Trading Volume History (Sept 06 Mar 10) *(Source: Capital IQ) CPC IPO $1.9 M Sept 2006 Qualifying Transaction May 2007 $11.1 M PP March 2008 $3.5 M PP July 2008 $5.3 M PP May m 4m 3m 2m 1m 0.0 Sep-06 Feb-07 Jul-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan

9 Rob Peterman Senior Manager, Global Clean Technology TMX Group Inc. Phone: Disclaimer This document is for information purposes only and is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TMX Group Inc. and its affiliates do not endorse or recommend any securities referenced in this document. Please seek professional advice to evaluate specific securities. While the information herein is collected and compiled with care, neither TMX Group Inc. nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, business or financial purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Inc. and/or any of its affiliates 17 as a result of any errors or inaccuracies herein or any use or reliance upon this information TMX Group Inc. 9