From the old days of Vancouver Stock Exchange (VSE) of Howe Street, to being combined with Alberta Stock Exchange to form CDNX, and then to TSX Venture. There has always been just one real active stock market for the venture companies in Canada, we call it high risk, high reward. However, with the rising listing fees and difficulty in raising capital in recent years, it gave rise to another exchange platform. There is really not just 1 venture stock exchange in Canada to choose from anymore, CSE (Canadian Securities Exchange), then CNSX and CNQ, has continued to make waves of picking up companies from TSXV and attracted new listings from scratch. The exchange offers easy access to public market, whereas keeping the cost and procedure down to a bare minimum. After some years in business, the platform finally becomes more sustainable with companies that can finally have decent liquidity and capital raise capability.
As CSE reaches critical mass, there are also companies that worth investors’ time to take a look. The following companies are some of the hidden gems that NAI500 follows:
PUDO Inc. (CSE:PDO)
Market Cap: ~ $40M
The company builds around an innovative concept of letting people drop off and pick up parcel in various locations convenient to them. This is one of the “shared” concepts that work for many other businesses during the last 5 years, where businesses are sharing their store to keep these parcels in, in return for traffic for new potential customers into their stores. Sounds simple? Most of the successful companies started with a simple concept.
Aydon Income Properties Inc. (CSE:AYD)
Market Cap: ~ $3M
Aydon is one of alternative investment ideas that leverages the explosiveness of the housing market. It is investing into properties that are situated in regions that on the recovery phase. These properties are available at much lower price than they were when the local economy was in a much stronger time. Of course, timing on the recovery or turnaround may not be instant, investors have to be patient if they are to see such company’s success in the future.
Robix Environmental Technologies (CSE:RZX)
Market Cap: ~ $4M
Robix is in a more specialized sector where it designs and operates equipment for oil spill recovery. Most of the applications are for industrial markets where the product has shown superior recovery rate than most products around. Now it’s up to the company to demonstrate the ability to execute and collect more sales.
CMX Gold & Silver (CSE:CXC) Market Cap: $3M
CMX is trying to develop a former producing Clayton Mine in Idaho back producing silver again. With the recent recovery of the commodities market, CMX has more potential to do more work on the properties in 2016 by raising enough funds. The company has successfully applied for crowd funding exemptions in US so it can allow individual investors from US and Canada to invest as little as $1000 each. It may not cost too much but it can be a fast track back to production when the silver price continues to improve.
Lite Access Technologies Inc. (CSE:LTE)
Market Cap: $50M
Lite Access has been one of the most heavily traded companies in CSE, it was built as a game changer in the microduct and fibre technologies. Put simply, it cuts small micro-trenches in the road, fastens microducts securely below the ground, and uses compressed air to blow broadband fibre through the tubes from point A to point B. The installation process has been more efficient and cost effective against the traditional method, which is its core competitive advantage.
Mine Location: Western Canada
Mine Type: Gold