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  • Writer's pictureCreative Return

THE RISKS AND REWARDS OF GOING PUBLIC W. RICHARD CARLETON – EP. 48

Updated: May 28, 2023


Going public can be risky but very rewarding at the same time. There is a number of factors that CEOs and boards need to understand when making such a decision. How do all these factors compare to other capital sources and what does it take to satisfy public investors?

Richard Carleton is the CEO of the Canadian Securities Exchange (CSE) – a stock exchange that plays a material role in our economy in helping early-stage companies access the Canadian public capital markets. Richard and the CSE are making a point of living their slogan of being ‘the exchange for entrepreneurs’.

It is interesting to note that the CSE, as a business and a marketplace, was effectively a startup that went through the same struggles any business would. This includes the need of raising capital from friends, family, and high net worth individuals. When thinking about access to capital, the CSE brings to the table a real insight into the process of taking your company public.

Richard tells us that one of the CSE’s goals is to lower the cost of capital for companies when compared against other capital sources.


RULES TO STAND OUT IN THE PUBLIC MARKETS


Part of our discussion was around how issuers a.k.a. public companies need to invest in engaging their investor audience. To truly stand out, this goes well beyond the press release. The main takeaway is that no matter the circumstances, the best companies over-communicate.

“There’s an extraordinary opportunity at this point to separate yourself from the competition. By communicating at a higher level, with compelling content, to build that audience and that potential shareholder base.” — @CSE_News [0:35:00]

Overall, Richard’s rules for standing out for any company in any sector is to communicate, communicate, communicate!

 

KEY POINTS FROM THIS EPISODE:

  • Unpacking the CSE’s slogan, ‘the exchange for entrepreneurs’.

  • How Richard has found the COVID-19 pandemic has impacted the CSE and its issuers.

  • How the CSE’s issuers can perform better in the markets and how the CSE helps them.

  • Market making and what it means for CEOs.

  • The CSE’s best practices for listing, including RTO and prospectus approach.

  • What potential issuers can learn from the best performers that have leveraged the CSE.

  • Companies that stand out follow the three rules: communicate, communicate, communicate.

  • Insights for CEOs and management teams looking to manage through the pandemic.

  • Companies in cannabis and technology industries posting positive results during the pandemic.

  • Risks and opportunities for the CSE when entering into the cannabis sector.

  • Final advice for issuers on what they should be preparing for given the circumstances.



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