String of NEO Tech Listings Fueled by Liquidity Value
The NEO Exchange has seen a recent flurry of tech-related listings, which it credits to visibility gained after a psychedelics stock’s debut.
Since launching in 2015, Canada’s NEO Exchange has distinguished itself to investors by providing exposure to novel industries such as the US cannabis market and the psychedelics space. Now the exchange is highlighting a growing presence in tech investments.
Jos Schmitt, president and CEO of the NEO, told the Investing News Network (INN) that the exchange has seen a recent uptick in tech listings. He believes the increase represents a turn of the corner that will allow the NEO to offer investors more avenues to enter the tech landscape.
From fintech, tracking software, augmented reality (AR) solutions and even online gambling operations, it’s fair to say the NEO has recently hit an upgrade in the tech sector.
Since late December of last year, four tech companies have reached the capital markets through NEO listings: Abaxx Technology (NEO:ABXX), Nextech AR Solutions (NEO:NTAR), Elys Game Technology (NEO:ELYS) and most recently GetSwift (NEO:GSW).
In addition to these regular listings, Optiva (TSX:OPT) confirmed it will offer a supplemental listing of debentures through the NEO. “NEO is a great trading venue for high-tech investors, and is supportive of our long-term goals. As such, I believe NEO should be a destination of choice for any emerging global technology company,” GetSwift CEO Bane Hunter said in a statement.
Schmitt said the NEO’s increase in tech listings is related to the benefits the exchange offers to companies, such as increased liquidity mechanisms.
The executive said staff at the NEO spend ample time working on the exchange’s value proposition for companies looking to go public in the Canadian market at large. They also have conversations with investors about what motivates them.
Besides the fact that the NEO is an established operating business, Schmitt credited the semi-recent listing of a psychedelics company for changing the landscape for the exchange.
“Mind Medicine (MindMed) (NEO:MMED,OTCQB:MMEDF), for me, is a bit of a seminal event for our exchange in the sense that it was a quality issuer, in this case in the psychedelics space, that came to us,” the NEO executive explained.
MindMed reached the public markets back in March 2020. At the time, CEO JR Rahn told INN that the psychedelics company picked the NEO because of its efficiency.
Schmitt explained he doesn’t point to the performance of MindMed in the open market as an indicator of the NEO’s benefits; instead, it reaffirms the premium that comes when a stock has liquidity.
“That gave us a proof point that the entire model is not only talk,” he said. Schmitt added that various stakeholders noticed this effect, and after a review period saw the exchange’s value proposition.
When asked about Canadian investors’ appetite in the tech landscape, Schmitt told INN he believes Canadians have shown a willingness to invest in new opportunities, and that is no different with tech.
Schmitt added that tech opportunities have experienced a rise in attention and performance thanks in large part to the effects of the COVID-19 pandemic.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.