CANADA’S PUBLIC EQUITIES MARKETS YOUR OPPORTUNITY Table of contents Investment opportunities in Canada’s leading public equities markets 4 Oil and gas: World-class competitors 8 Mining: From the ground up 10 Technology and innovation: Find your next investment opportunity on Fast growth in ideas 12 Toronto Stock Exchange and TSX Venture Exchange. Diversified industries: Exposure to a wealth of sub-sectors 16 Choose from more than 3,400 companies listed on the ETFs and closed-end funds: Exchanges, from micro-cap to mega-cap, across a broad All the stocks that fit 20 spectrum of industry sectors. TSX and TSXV by the numbers 22 Number of Canadian companies and issuers listed on TSX and TSXV by province 24 Top 20 stocks on TSX and TSXV by volume traded 26 New listings in 2014: Welcome to TSX and TSXV 28 2 CANADA’S PUBLIC EQUITIES MARKETS. YOUR OPPORTUNITY. 3 Investment opportunities in Canada’s leading public equities markets If you are like most Canadians, you probably understand how companies raise capital “TSX provides access to capital – and a welcoming environment – on a stock exchange by issuing shares to the public. You are familiar with the role for many companies located in Canada and outside our borders,” of public equities markets, and you understand the risks and rewards of investing says Ungad Chadda. in public companies. Yet are you aware of the breadth and depth of Canadian companies listed on our country’s leading public markets? “TSX is Canada’s leading capital market, by any measure, and has become a critical piece of our country’s financial Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) offer a diverse and infrastructure. The Exchange provides a well-regulated, globally Ungad Chadda vibrant stock list to access various investment opportunities. Together, TSX and TSXV Senior Vice President, recognized marketplace for companies to raise growth capital, are home to a wide range of companies, providing Canadian investors an opportunity Toronto Stock while also providing an environment where investors can find a to invest in home grown companies. More than 3,400 companies – including over Exchange world of opportunities for their investment portfolios,” 3,220 Canadian companies, from coast to coast – are listed on the according to Chadda. Exchanges across a spectrum of industry sectors including oil and gas, mining, technology, life sciences, clean technology, industrials Many investors in Canada, however, may not realize that they can also participate in TSX and TSXV: and financial services. And with the two-tier nature of the exchanges, the growth and development of smaller but no less ambitious companies, from their investors can choose to invest in growing businesses on TSXV or more early stages to their maturity, through the almost 2,000 companies listed on TSXV. 3,400+ established blue chip corporations on TSX. LISTED COMPANIES “Early stage companies can offer growth opportunities,” For more than 160 years, some of Canada’s most renowned businesses says John McCoach have listed their securities on TSX, Canada’s oldest and largest “TSXV is unique in Canada, in that it provides a market for Exchange. On TSX, investors can choose from over 1,500 Canadian Canadians to invest during the early phases of a company’s and global companies spanning several different sectors. In fact, TSX is home to development. There’s no other public venture market like some of the world’s biggest natural resources companies as a result of the Exchange’s this anywhere in the world in terms of the number of companies global leadership position in financing oil, gas and mining companies. TSX is also listed and the amount of equity capital raised. We see these John McCoach Canada’s only home to over 340 exchange-traded funds (ETFs), which provide exposure companies as vital to the future of Canada’s economy.” President, to a wide range of industry sectors and asset classes, including Canadian and TSX Venture Exchange international equities, fixed income, commodities and currencies. There are also over Through stocks issued on TSXV, investors gain access to 210 closed-end funds listed on TSX, which have a current market value of more than emerging companies, some of which may grow into tomorrow’s $25 billion. Closed-end funds are flexible investment products that are designed to leaders. Their investment helps these companies to advance respond to modern investor needs, from yield enhancement and capital protection their activities in research and development, innovation to risk reduction. and exploration as they grow from their initial stages to commercialization, production and expansion. TSX and TSXV are the world’s premier public equities markets for natural resources 4 5 companies from across the globe. CANADA’S PUBLIC EQUITIES MARKETS. YOUR OPPORTUNITY. TSX and TSXV provide a unique environment that supports the needs of public companies through their development. And as companies on TSXV grow, some may be eligible to graduate to TSX, the “senior” market, thereby enabling investors to seamlessly participate in their development over the full span of their lifecycle. In fact, since January 2000, more than 600 companies have graduated from TSXV to TSX. The graduates have raised $85 billion in equity capital on TSX since then. There are 316 graduates currently listed on TSX, representing a market capitalization of more than $160 billion, and 15% of these companies are currently in the S&P/TSX* Composite 605 Index, with three in the S&P/TSX* 60 Index. COMPANIES HAVE GRADUATED While the performance of a listed company depends on many factors, FROM TSXV TO TSX investors can take comfort in knowing that these companies have SINCE JANUARY 2000 met the initial and ongoing requirements to qualify for listing on TSX and TSXV. Before they can offer shares to the public on either Exchange, companies have to meet specific financial criteria, and demonstrate that their management team has adequate experience and expertise to successfully manage a listed company. Nevertheless, investors should always seek guidance from investment professionals before making investment decisions. Past performance is not indicative of future performance, and investing in securities is not without risk. Investors across Canada, from coast to coast, can participate in the growth of emerging companies in their early stages of development on TSXV, as well as established large-cap businesses on TSX. 6 * “S&P” is the trade-mark of Standard & Poor’s Financial Services LLC, and “TSX” is the trade-mark of TSX Inc. CANADA’S PUBLIC EQUITIES MARKETS. YOUR OPPORTUNITY. 7 SECTOR OVERVIEW DISCOVER SOME OF THE COMPANIES IN THIS SECTOR • 337 oil and gas Blackbird Energy Inc. (TSXV:BBI) operates in the western Canadian Oil and gas: World-class competitors companies - accounting basin, one of the largest shale basins in the world, with operations for 30% of the world’s in Alberta’s Montney natural gas resource, about 200 km north of public oil and gas Grand Prairie. companies - are listed --> Calgary, AB on TSX and TSXV With more than 175 billion barrels of oil, Canada ranks third in the world in proven Keyera Corp. (TSX:KEY) provides products and services to oil • Oil and gas companies and gas producers in Western Canada, including gathering and crude oil reserves – one of the largest of its kind accessible on public markets. raised $11 billion in processing NGLs, fractionation, storage, transportation, logistics Canada is also a top five global producer of natural gas. equity capital on TSX and marketing services. As an independent midstream business, and TSXV in 2014, more the company focuses on providing essential services to producers For investors interested in the oil and gas sector, TSX and TSXV provide an important and delivering NGLs and related products to key markets across than double the equity North America. and liquid market for trading shares in public energy companies. The Exchanges capital raised during --> Calgary, AB currently rank third in the world in terms of liquidity in the sector, with an average of 2013 ($5.2 billion) $1 billion in shares traded every day. These shares are issued by oil and gas companies at various development stages and with operations not only in Canada, • TSX and TSXV rank #2 Mapan Energy Ltd. (TSXV:MPG) is a new oil and gas company incorporated in early 2014. The company aims to build a low-cost but throughout the world. in the world for equity exploration and production company with emphasis on natural gas capital raised in this properties in the western Canadian basin and has two operations in 335+ Investors in Canada can choose from more than 335 oil and gas sector in 2014 Alberta and British Columbia. OIL AND GAS companies listed on TSX and TSXV. Of that total, almost 230 exploration --> Calgary, AB COMPANIES ARE and production stage oil and gas companies are listed on TSXV. As these companies develop and mature, they have the potential to graduate Painted Pony Petroleum Ltd.* (TSX:PPY) is a recent graduate LISTED ON TSX of TSXV. The company focuses on natural gas and natural gas AND TSXV to TSX. Yangarra Resources Ltd. (TSX:YGR), Africa Oil Corp. (TSX:AOI) and Mart Resources Inc. (TSX:MMT) are a few examples of companies liquids (NGLs) from the Montney formation in northeast British Columbia, where it has a 72% working interest in more than that graduated to TSX in 2014. In fact, more than 30% of oil and gas 100,000 acres around Blair, Cameron and other towns. It also has companies on TSX are graduates of TSXV, while four of the eight oil and gas companies a 75% interest in more than 77,000 acres of property around Midale, newly listed on TSX in 2014 graduated from TSXV.