NEO Exchange facilitated more than C$1.5 billion in initial public offerings in 2019, the Canadian stock market reported. Last year’s activity included the listing of six special purpose acquisition corporations (SPACs), among them the cannabis-focused Subversive Capital Acquisition Corp, which secured nearly C$750 million in its go-public transaction. The SPAC is an affiliate of U.S. private equity firm Subversive Capital.
Initial Public Offerings on NEO Raised $1.5 Billion In 2019
2019 marked the re-birth of SPACs on NEO
February 06, 2020
TORONTO–(BUSINESS WIRE)–NEO is pleased to announce that in 2019, the Neo Exchange Inc. (“NEO Exchange” or “NEO”) facilitated over CAD $1.5 billion in initial public offerings, ranking the stock exchange on par with the Toronto Stock Exchange and well ahead of total initial public offerings raised on the two Canadian venture exchanges.
By December 2019, the NEO Exchange was home to 75 fund listings and 10 corporate listings and facilitating 10.5% of all trading activity in Canada. This includes the listing of Columbia Care Inc. [NEO:CCHW] with a market capitalization over CAD $1 billion and Halo Labs [NEO:HALO], a company that continues to hit numerous record-setting volume days, including a day in November 2019 where over 9 million shares were traded across the NEO exchange and various foreign marketplaces.
2019 also marked the re-birth of Special Purpose Acquisition Corporations (SPACs), with six SPACs listed on NEO. Subversive Capital Acquisition Corp. [NEO:SVC.A.U] became the largest SPAC IPO in Canadian history when it raised close to CAD $750 million in its go-public transaction. NEO also became home to the first ever Canadian and US dual-listed SPAC, when Merida Merger Corp. [NEO:MMK.U] listed on NEO and NASDAQ to leverage the market depth of both capital markets. Listings on NEO in 2020 started strong with another large SPAC IPO when Subversive listed Real Estate Acquisition REIT LP [NEO:SVX.UN] and raised over CAD $260 million.
SPACs are a particularly interesting way to enable companies to go public during periods of instability and in emerging and volatile industries, such as cannabis.
“SPACs, as an alternative way to allow companies to go public, are here to stay. I predict that given the market environment we find ourselves in today, we will see further SPAC growth in 2020, both in the cannabis sector and beyond,” stated Jos Schmitt, President & Chief Executive Officer, NEO. “At NEO, we have developed unparalleled experience in this space and don’t limit ourselves to a simple ‘check the box’ approach when we receive an application. Unlike traditional stock exchanges, we share our experience, provide recommendations and suggestions, and are always looking for solutions rather than problems.”
The smallest SPAC listed on NEO in 2019 raised north of CAD $150 million, which provides an indication of the size of transactions these corporations are typically focused on.
About NEO Exchange
Neo Exchange Inc. is a progressive stock market that brings together investors and capital raisers within a fair and transparent environment. Fully operational since June 2015, NEO puts investors first and provides access to trading all Canadian-listed securities on a level playing field. The NEO Exchange lists senior companies and investment products who want a stock exchange that enables investor trust, quality liquidity and broad awareness, including unfettered access to market data. For more information, please visit: NEOstockexchange.com
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