Canadian Stock Exchange Listings CNSX Listings versus Frankfurt Stock Exchange (FSE) Listings
The CNSX is roughly $100-$200k more expensive to list when including the broker sponsor. In addition, the yearly costs are $20-$30k more expensive on the CNSX than Frankfurt Listings.
To list on the CNSX it requires establishing a base of at least 200 investors. Although we can assist you to list on the CNSX, and possibly find you a sponsor such as Global Securities, to sponsor your firm, the costs are quite high. The broker sponsor alone is 25-50k CDN. The capital in cash with investors names needs to be over $200,000 and upwards of $300,000. Some firms can try to list you as your own underwriter, this saves you maybe 25k, but you will never trade without the sponsor broker… The funding options in Canada often come with something called a Broker Warrant. This often is something they get for helping bring in the 200 investors and after financing. However, they generally are used to a maximum of $200k to $500k, since they are accustomed to Venture Capital Pools (another way to list onto the TSX similar to the process mentioend above for the CNSX.) When they execute their options, and all of their 10 cent shareholders whom end up owning 20-30% of your firm for their $200k investment begin to sell with the first sign of movement in stock price, your stock could be taken to a penny. In addition, its difficult to do private placement rounds, those that do in Canada, often break the rules and get sanctioned for it. You need to report to SEDAR, if its mining you need the appropriate reports, and you will need to be auditted.
Listing on Frankfurt:
– no audit
– no reporting rules
– no insider trading rules
– no restrictions on insiders
If you have cashflow, a company can get 1-5 million euro fast in and it has no shares to sell related to it.
If its a start up company you can generally get $1-$10 million in private placements over a 12 month period, shares restriced for 12 months if you want to .
From the point of view of what FSE Listings Inc has to over, we can list firms in 3-6 weeks on the Frankfurt Stock Exchange from submission, we keep the costs to a minimum, 60k euro, and we can introduce up to 5 million euro first round financing for firms that qualify. The Frankfurt listing doesn’t have the on going costs of Audits, Legal opinions and bills, disclosures, filings, and reporting that the other exchanges have. Most exchanges are not making it easier for small businesses, their idea of quality companies are those that can pay large bills and yearly fees, there is no interest in quality small businesses on the other exchanges. The Frankfurt Stock Exchange is the most friendly market in the World for new businesses and existing businesses looking to raise capital.
In addition, once listed on the FSE, one can always dual list, cross list, or relist on the AIM, OTCBB, TSX,ASX, JSE, etc.
As a consultancy, FSE Listings Inc provides training to clients, coaches clients, and works with them for years not months. We are available for questions at +19146133889 or info@fselistings.com.
FSE Listings Inc guarantees the success of your listing! www.fselistings.com