Stanford-Rotman Corporate Governance Day: Major Challenges in Today’s Boardrooms

Good corporate governance plays a critical role in sustaining the value of Canada’s companies – big and small, private and public. As the business landscape continues to shift in Canada, the U.S. and other countries, companies are paying greater attention to the way they conduct business and their social responsibilities as corporate citizens. In today’s economy, boards of public companies, in particular, must look beyond business as usual to be mindful of transparency, accountability and efficiency. Staying up-to-date on best practices and continuing education is critical for any business leader or board member.

On October 25, 2014, the University of Toronto’s Executive Programs, Rotman School of Management and Stanford University’s Rock Center for Corporate Governance will host a full-day program for directors and senior executives of Canadian companies to learn from esteemed faculty members from both schools, as well as experienced board members and corporate governance experts from Canada and the U.S. Titled “Stanford-Rotman Corporate Governance Day:  Major Challenges in Today’s Boardrooms,” the  program will address a broad range of challenges that confront modern companies and boards, including:

  • Shareholder activism;
  • The role of independent directors;
  • M&A litigation; and
  • Challenges of subsidiary governance.

The day will include keynotes from Tiff Macklem (Dean of the Rotman School of Management and former deputy governor of Bank of Canada), a welcome video from Canada’s Governor General David Johnston, four Stanford Law School faculty, as well as a panel line up of board chairs, directors and CEOs from organizations such as Valeant, Suncor, TD Bank, and Manulife.

For the full details of this program, please visit: www.rotmanexecutive.com/stanfordrotman

To register for this exclusive program, please visit: https://epapplication.rotman.utoronto.ca/?programid=286


The views, opinions and advice provided in these materials/presentations reflect those of the individual authors/presenters. The presentations/materials are not reviewed or endorsed by TMX Group or its affiliated companies.

Update on Capital Raising

We are now well past the half-year mark in 2014, buoyed by the continued strong performance of Canadian equity markets. Today, we look at how industry sectors have performed on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) during the first eight months of this year, with a particular focus on equity capital raised.

As at August 31, 2014, companies listed on TSX and TSXV have raised more than $40 billion in equity capital, which represents a 44% increase compared to this time last year. TSX-listed companies, on average, raised $83 million, while TSXV-listed companies raised an average of $3.2 million. In terms of new entrants on TSX and TSXV, there have been 159 new listings so far this year, split equally between both exchanges. Companies are also using our two-tier exchange system to full effect, with 15 companies graduating to TSX from TSXV.

Looking at equity capital raised in individual sectors shows impressive year-over-year increases as at the end of August:

  • Clean technology and renewable energy – $1.5 billion in equity capital raised (up 89%) through 71 financings. This marks the sixth consecutive year where capital formation in the sector was above $1 billion.
  • Financial services – $7.9 billion in equity capital raised (up 122%) through 45 financings. This is the largest sector on TSX and TSXV by market capitalization.
  • Mining – $6.6 billion in equity capital raised (up 144%) through 988 financings. In the first half of 2014, TSX and TSXV ranked first in the world for equity capital raised in the mining sector.
  • Oil and gas – $7.9 billion in equity capital raised (up 214%) through 171 financings. The sector has already surpassed the total amount of capital raised in 2013. Half-way through 2014, TSX and TSXV ranked second in the world for equity capital raised in the oil and gas sector.
  • Technology – $2.7 billion in equity capital raised (up 104%) through 75 financings. This marks the third consecutive year where capital formation in the sector was above $1 billion.
  • Utilities and pipelines – $5.5 billion in equity capital raised (up 34%) through 14 financings. This is the fourth largest sector on TSX and TSXV by equity capital raised.

Equity Capital Raised by Sector on TSX and TSXV

(Source: Capital IQ)

As at the end of August, the total market value of TSX and TSXV-listed companies was more than $2.6 trillion, an increase of 22% over last year. In fact, all of the sectors on the exchanges have seen their total market capitalization grow so far this year. A few noteworthy year-over-year market value increases have come in the following sectors: financial services (27%), diversified industries (18%), oil and gas (17%) and mining (11%).

The uplift in Canadian capital market activity in 2104 has also helped Canada’s main market index edge higher. It is encouraging to see the S&P/TSX Composite Index continue to beat out all other major indices globally since the start of the year. Along with the S&P/TSX Venture Composite Index, both indices were in the top three for performance among major world indices during the first eight months of this year, and we hope this momentum continues.

Comparison of Major Index Performance


Data and statistical information is courtesy of TMX’s Market Intelligence Group (MiG), which provides monthly insight into your exchange. Click here to view the latest MiG Report (August 2014) and other lists. If you would like to have the MiG Report delivered directly to your inbox each month, please register here: http://www.tmx.com/en/mig/register.html

S&P is a trade-mark of Standard & Poor’s Financial Services LLC and is used under license by TSX Inc.

Montréal Exchange brings options trading to university campuses across Canada

Montréal Exchange (MX), Canada’s derivatives exchange, yesterday marked the launch of trading in its Options Trading Simulation contest.

A key part of MX’s derivatives education initiatives, the Options Trading Simulation contest offers undergraduate university students the opportunity to gain virtual experience in the Canadian options market. Using the TMX Trading Simulator, student teams create their own options portfolios and deploy various mandated trading strategies over the course of the eight week session. For this fall’s session, the fifth edition of the contest, participation levels continued to grow across the country with close to 1,800 teams registered, a 50% increase from this year’s spring session. Over 2,800 students from a total of 36 Canadian universities are competing for $17,500 in prizes. Several universities now also include the contest in their derivatives curricula and on-campus investment clubs.

We are very proud of the national success of our educational initiatives. The Options Trading Simulation contest is helping to demystify derivatives trading and enable the next generation of professional and non-professional Canadian investors to better manage their portfolios.

- Alain Miquelon, President and CEO, Montréal Exchange and Group Head of Derivatives Markets, TMX Group

The Options Trading Simulation contest runs from September 29, 2014 to November 21, 2014. For more information please visit www.m-x.ca/sim. The TMX Trading Simulator is featured on the TMX Capital Markets Learning Centre website at www.tmx-edu.com.


TSX/SDTC Cleantech Investor Day Promotes Vibrant Sector

Last week, Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) hosted their 8th Cleantech Investor Day – an institutional investor-focused series that was first launched in 2008. In partnership with Sustainable Development Technology Canada (SDTC), and supported by sponsors McMillan LLP and MNP LLP, the half-day event shined a light on Canada’s clean technology sector, a powerful economic opportunity for our country and an industry on the rise in multiple jurisdictions across the world.

The TSX/TSXV Investor Day series is relatively unique in Canada in that it gives both public and private companies, across all sectors, an opportunity to tell their story to a broad range of representatives from the capital markets. This year’s TSX/SDTC Cleantech Investor Day showcased the strength of the Canadian clean technology and renewable energy industry, and welcomed five public companies and six private companies from the sector, representing a broad range of service and product offerings, geographies and stages of development. Here is a list of the companies that presented at the event:

  • dPoint Technologies Inc. (privately held)
  • Pure Technologies Ltd. (TSX:PUR)
  • Pulse Energy Inc. (privately held)
  • 5N Plus Inc. (TSX:VNP)
  • Enerkem Inc. (privately held)
  • Hydrogenics Corporation (TSX:HYG)
  • GaN Systems Inc. (privately held)
  • OneRoof Energy Group, Inc. (TSXV:ON)
  • Endurance Wind Power Inc. (privately held)
  • DIRTT Environmental Solutions Ltd. (TSX:DRT)
  • Temporal Power Ltd. (privately held)

As a result of a strong speaker list and continued investor interest in the sector, the event had a standing-room only audience of over 120 capital market professionals, including institutional investors, equity research analysts, investment bankers and venture capitalists.

The clean technology and renewable energy sector on TSX and TSXV is vibrant and growing. Taken together, the exchanges are home to over 115 cleantech companies – more than any other exchange in the world. Halfway through 2014, the sector reached its highest ever month-end market value of $27 billion. As at the end of July, there have been eight initial public offerings and new listings in the last 12 months*. TSX- and TSXV-listed companies in the sector raised more than $1.5 billion in growth capital so far this year, marking the sixth consecutive year where capital formation in the sector was above $1 billion.  Notably,  the S&P/TSX Renewable Energy and Cleantech Index has outperformed the S&P/TSX Composite, the S&P/TSX 60, and several global cleantech benchmarks year-to-date in 2014 and over the last three years.**

If the event’s attendance numbers and the sector’s statistics are an indication, cleantech is alive and well in Canada and the buy-side is energized by the various investment opportunities.


* As at July 31 2014, five companies listed on TSX and three companies listed on TSXV since August 2013.

** As at August 31, 2014; returns based on total returns, per S&P Dow Jones.

“S&P”, as part of the composite mark of S&P/TSX which is used in the name the S&P/TSX Composite Index, the S&P/TSX 60 Index and other S&P/TSX indices, refers to a trade-mark of Standard & Poor’s Financial Services LLC and is used under license by TSX Inc.

TSX Ignite Continues Live Events in Halifax

Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) continued the TSX Ignite live event series in Halifax yesterday. Launched earlier in 2014, the national program is designed to help support the growth and development of small- and medium-sized enterprises (SMEs) in Canada by providing companies with information, insight and tips on how to build great businesses.

The first in a series of seven live events for TSX Ignite kicked off at the MaRS Discovery District in Toronto last month to a sold-out audience of over 250 attendees. The live events component of the program bring together leading banking, legal and accounting advisors to share experiences and best practices with entrepreneurs at all stages and from all sectors.

The Halifax live event topics included keys to raising capital, important building blocks for success and common mistakes to avoid. Below is a look at the event’s panel topics and participants:

  • “Must Do” Tips for Raising Capital – Daniel Holland, Executive Vice Chairman & Managing Director at Beacon Securities Limited; Max Satel, Director, Investment Banking at Mackie Research Capital Corporation; and Ross Marshall, Senior Vice President, IPO Roadshows, TMX Equicom.
  • Fireside Chat – Robert Orr, CEO and Managing Director at Cuna del Mar and John Risley, President and CEO at Clearwater Fine Foods Inc.
  • Four Practices to Make Your Company Better – Dan Jennings, Partner, BDO; Glenn Jessome, Principal, JESSOMELAW; Allen Jenkins, Partner, PwC; and Colleen Keyes, Partner at McInnes Cooper.
  • The DHX Growth Story – David Regan, DHX Media Ltd.

TSX and TSXV worked with leading experts and advisors across Canada to assemble value-added information for companies and entrepreneurs at all stages of growth and from all sectors, both private and public. Over 20 Canadian law firms, accounting firms and investment banks collaborated to provide input and content on all aspects of the program. Several industry organizations are also helping to promote TSX Ignite across Canada.

Click here to see a list of sponsors and partners supporting TSX Ignite.


The next TSX Ignite event will be held in Edmonton on October 8, 2014, Calgary on October 9, 2014, and Vancouver on November 4, 2014.

Essentials for Great Canadian Companies at Your Fingertips

TSX and TSXV launched TSX IgniteTM earlier this year – a national program designed to help Canadian companies grow and develop, with a primary focus on small and medium-sized enterprises (SMEs).

The program provides companies and entrepreneurs – at all stages of growth and from all sectors, both private and public – with tools and resources to help them reach their full potential. TSX and TSXV worked with leading experts and advisors from across Canada to assemble information and best practices. Over 20 Canadian law firms, accounting firms and investment banks collaborated to provide input and content on all aspects of the program.

TSX Ignite consists of two main components:

  • Live events held in seven cities across the country to provide free information relevant to a company’s growth plans, including tips on raising capital and factors to consider when growing a company and hiring advisors. Three live events have been held so far this year, kicking off in Toronto last April. More than 530 entrepreneurs, managers and owners of SMEs have registered to attend to date, with the next event scheduled in Halifax on September 16th.
  • The website, tsxignite.com, is home to the program’s Learning Channel and other resources. Canadian entrepreneurs can participate in online courses and gather expertise in 60-second videos from high-profile Canadian business leaders.

The Learning Channel consists of four online courses: Attracting Investors; Why Governance Matters; Best Practices for Financial Controls and Growth; and Acquisitions for Growth. These webinars feature leading figures in the Canadian business landscape that provide their insight on how to build and grow great companies.

Entrepreneurs are pioneers that like to create their own destiny. Yet seeking business advice from seasoned experts is important to any business owner, whether they are just starting up or well established. Through the Learning Channel, we have assembled what we think is useful expert information that will prove beneficial to any ambitious entrepreneur.

To learn more, please visit tsxignite.com.

 


CSCS’ 2014 Excellence in Governance Awards Winners Announced

The Canadian Society of Corporate Secretaries (CSCS) recently announced the winners of the 2014 Excellence in Governance Awards, which were presented as part of the opening gala of the CSCS’ 16th Annual Corporate Governance Conference in Banff, Alberta last month.

As the Canadian business landscape has shifted over the years, public, private and non-profit companies are paying greater attention to the way they conduct business and their social responsibilities as corporate citizens. Now in their second year, the awards celebrate the many contributions that Canada’s top governance professionals made – and continue to make – to their organizations and, by extension, the country’s economy and capital markets by implementing, among other things, effective governance, risk and compliance practices. Organizations with effective governance processes are also recognized and celebrated.

TMX Equity Transfer Services, a division of TSX Company Services, was pleased to sponsor and present the first award of the evening, which was given to a Canadian company that was deemed to have the best sustainability, ethics and environmental governance program. Entrants were judged on the quality, consistency, robustness and clarity of corporate social responsibility programs and reporting. This year’s winner in this category was ATB Financial.

The 2014 Excellence in Governance Award winners were selected by a jury panel selected by the CSCS and composed of ten seasoned and well-respected governance experts from across Canada, having each contributed in significant ways to corporate governance and strategic leadership in their respective organizations.

Click here for the full list of this year’s Excellence in Governance Awards winners.


Batter up! TMX Group CEO Throws Opening Pitch

Tom Kloet, Chief Executive Officer, TMX Group, took to the hill yesterday to throw the ceremonial first pitch at the Toronto Blue Jays game. Tom is a big fan of America’s pastime, and was thrilled to open things up ahead of a riveting game against American League East rival, the Boston Red Sox.

A commanding presence on the mound, over 140 TMX Group employees were among more than 25,000 fans to witness Tom’s perfect knee-high strike.

Tom (middle) with Ace (left) and Toronto Blue Jays pitcher, Mark Buehrle (right)


Canadian Innovation Sector on the Upswing

Earlier this month, our resident technology expert, Michael Kousaie, Head, Business Development (Technology) at Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV), contributed a spotlight article about the innovation sector* to TechVibes, Canada’s leading technology news property. The editorial titled “Technology Resurgence on Canadian Public Markets Gives Companies New Funding Options” takes a close look at the state of (and outlook for) technology and innovation companies listed on TSX and TSXV, as well as the innovation sector’s performance so far in 2014.

Below is a brief selection from the article:

Some of the world’s most exciting technology and innovation companies are being founded, built, and funded in Canada—and investors from around the world are taking notice. These investors, though, aren’t just venture capitalists. As companies with an impressive depth of talent and dynamism turn to public markets to help them achieve their growth plans, demand is growing among public investors seeking to diversify their investments beyond typically dominant sectors such as mining and oil.

Click here to read the editorial in full.


*The innovation sector is comprised of the technology, clean technology, renewable energy, and life sciences sectors.

Monthly Insight into Your Exchange

We operate in a fast-paced, ever changing environment. No matter what business you are in, the simple fact remains that staying current is not only important – it is necessary. Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV)’s Market Intelligence Group (MiG) provides detailed market information through a monthly publication called The MiG Report. The Report provides year-to-date data on listings, equity financings and trading activity across TSX and TSXV, broken down by sector and region. With both monthly and full-year data reports going back to 2008, the MiG Report helps listed companies, analysts and other market participants get a full view of activity taking place on Canada’s capital markets.

Listed below are some of the statistics available through the MiG Report:

  • Year-to-date going public activity and new listings, both domestic and international
  • Equity capital raised by sector on TSX and TSXV
  • Comparison of major index performance
  • Trading volumes by sector on TSX and TSXV
  • Top 10 financings on both equities markets for the month and year-to-date
  • Sector snapshots

The MiG team also provides detailed lists of all listed companies on TSX and TSXV, including international and dual-listed companies, as well as up-to-date records of year-to-date new listings and a report of Capital Pool Companies (CPC) that have not announced their Qualifying Transactions.

Click here to view the latest MiG Report (June 2014) and other lists. If you would like to have the MiG Report delivered directly to your inbox each month, please register here: http://www.tmx.com/en/mig/register.html