Your Pathway to International Listings:
Expert Advisory to Go Global
Canada to USA Dual-phase Listing
Companies pursue IPOs for a multitude of reasons: to access capital, enhance their market presence, reward employees and early investors, and set the stage for future growth. Here, we outline a dual-phase journey that begins with listing on a Canadian exchange, setting the stage for a successful transition to a Nasdaq IPO.
Why start with a Canadian Exchange?
Increased Flexibility
Go-Public process allows increased flexibility regarding timing, multi-step issuances, and cost to issuers
Increased Market Presence
$1B Market Cap would be 25th largest technology company in Canada but 436th largest on NYSE/NASDAQ
Lower Pubco Costs
Transaction and ongoing costs lower as compared to U.S. alternative, with annual maintenance costs as little as $600,000
Clear Path to NASDAQ
Multi Jurisdictional Disclosure (MJDS) required for dual stock exchange listing allows for companies to largely use Canadian go-public requirements to list on the NYSE/NASDAQ
Accessible Market Entry
Relatively streamlined process and lower initial barriers for listing in Canada.
Growth Opportunity
Canadian exchanges provide an excellent platform for growth and increased visibility in North American markets.
Benefits of Canadian Public Markets Strategy
Accessible Platform for Emerging Innovations
Canadian Exchange is a proven venue for emerging technology companies that are too early for the US markets.
Alternative Pre-IPO Financing
Canadian Public markets offer a well-established alternative to pre-IPO financing for an eventual NASDAQ IPO.
Investor Attention
A company at an optimal size and scale can attract significant attention from Canadian public market investors.
Lower Cost of Capital
Lower cost of capital by ability to raise multiple tranches of capital strategically at increasingly higher share prices – minimizing dilution.
Autonomy for Management
Broader shareholder distribution provides more autonomy to management team.
Expedited NASDAQ IPO
Faster and lower-cost IPO on NASDAQ via well-established dual listing process.
The Road to Nasdaq
Long-Term Vision
Achieving a listing on the Nasdaq represents not just a milestone, but a significant leap towards global business leadership. The benefits of a Nasdaq IPO are manifold and impactful:
- Global Visibility: Nasdaq-listed companies attract attention from around the world, placing your brand on the global stage and enhancing its profile among international investors and partners.
- Access to Capital: The Nasdaq is renowned for its deep and diverse investor pool, offering access to significant capital resources that can fuel innovation, expansion, and strategic acquisitions.
- Prestige and Credibility: Listing on the Nasdaq lends unparalleled prestige, associating your company with some of the most innovative and successful companies worldwide. This enhances credibility with customers, partners, and potential investors.
Strategic Positioning
Starting your public journey on a Canadian exchange is a strategic maneuver that lays a robust foundation for a successful Nasdaq listing. Here’s how:
- Foundation for Compliance: The Canadian listing process helps companies acclimate to the regulatory rigour and reporting standards expected on major exchanges like the Nasdaq, making the transition smoother.
- Market Readiness: It offers an opportunity to fine-tune your company’s story, financial structure, and market strategy in a less intimidating environment, preparing you for the broader global market.
- Investor Engagement: A Canadian listing begins the process of building your company’s profile among North American and international investors, creating early interest and momentum that can be leveraged for a Nasdaq IPO.
CSE-Nasdaq Dual-phase Listing Process
For small tech startups, the process of listing on the CSE before transitioning to NASDAQ typically involves several key steps. This process allows companies to initially list on smaller exchanges like the CSE, then move to more globally recognized platforms like NASDAQ:
Listed on CSE
Build Track Record and Compliance
Prepare for Nasdaq Listing
Apply to Nasdaq
Transit from CSE to Nasdaq
Ongoing Compliance and Growth after Listing
How Can E11 Help?
Strategic Advisory
Service:
- Complete company and technology due diligence in preparation for public market investors
- Development of financial model and relevant analysis
- Develop corporate and investor presentations and related materials
- Advise on capital structure
- Developing long-term capital raising strategy with a focus on a pathway to NASDAQ listing
- Detailed execution plan and recommendations on capital strategy with respect to a potential private or public transaction
- Assist in key contract negotiations
Public Listing Advisory
Service:
- Advice on the structuring and terms of any pre-go public, public listing, acquisitions and concurrent financing
- Develop and maintain a ‘virtual data room’
- Detailed review of the go-public roadmap (regulatory requirements, costs, timelines, and alternative go-public strategies)
- Preparation of listing applications, prospectus, and other related documentation
- Assist management in the selection and management of Canadian external counsel and accounting team (including fee negotiations)
- Introduce and negotiate with potential investors
- Provide the general support for the execution of the go-public transaction to ensure a timely closing including road show assistance preparation
- Introduce potential value-add pre-IPO investors
- Assisting in the recruitment and selection of additional Canadian management (as
requested) - Assist with identification of Canadian board members (as requested)
- Assist in the preparation and establishment of all corporate governance requirements including the preparation of all board charters
- Assist in seeking support for initial trading liquidity
- Introduce and co-ordinate market makers, private research publishers and key retail shareholder communications team members
- Assisting management in running a competitive ‘beauty contest’ to select underwriting group (if applicable)
Post-Listing Support
Service:
- Advise on the day-to-day running of a public company in North America
- Provide day-to-day corporate development services
- Maintain corporate and investor presentations
- Maintain financial modelling and assess working capital and operational issuers
- Support board-level activities
- Assist in investor relations activities including preparation of all materials and programs
- Introduction to and relationship maintenance with equity research analysts and institutional investors
- Assist in the identification and execution of M&A and JV opportunities
- Assist in sourcing and executing future debt and equity financings
E11, More Than Just Advisors
Accountability as an extension of management via equity participation – we think and act like owners
Experience
Experienced North America team and local partners with past successes in helping companies list on Nasdaq
Full-Service Advisory
From pre-listing preparation to post-listing support
Cultural Insight
Understanding of both Chinese and American market practices to bridge cultural gaps
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