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Summary
- The S&P/TSX Venture index is up by 85 percent in a 15-week period
- Equity investment in early stage companies can pay off in long run
- Several new companies have entered on the TSXV in May-June
As the Canadian economy fights slump following the business impact of coronavirus pandemic, investors have been trying to size up potential companies in their initial stages of growth. Investing smartly in such early stages can provide remarkable returns in the long run.
The S&P/TSX Venture Composite Index’s (TSXV) has proven resilient to the new normal, rising by an astonishing 85 percent in a 15-week period from March 19. Under these unprecedented circumstances, investment in small- and micro-cap firms listed on the TSXV bourse can be looked at.
Since investing in small- and micro-cap scrips is traditionally considered risky because of lack of adequate market data and unproven product and sales history, it is ideal to undertake a thorough background research. One must understand the business model and go through the management’s long-term plans before buying equity. Basic groundwork can help investors avoid missteps.
Below, we have collated the details five newly listed companies on the TSXV. Check them out:
Baselode Energy Corporation (TSXV:FIND)
Market Cap: C$ 5.5 million
Current share price: C$ 0.19
Sector: Energy
Industry: Other Energy Sources
This Canada-based uranium exploration firm, founded by geologist James Sykes, focuses on unearthing high-grade uranium deposits in Canada's Athabasca basin. Baselode Energy Corporation’s official website claims that the founder-CEO Sykes has helped discover 550 million pounds of uranium worth “$19.25 billion” over time. It adds that nuclear technology is future alternative to fossil fuels, a cleaner source of energy and cheaper than renewables. Uranium supply is currently vulnerable following production cuts due to COVID-19 and will soon witness a supply-deficit, adds the company.
The company was founded in January 2018 and began trading on the TSX Ventures Exchange under FIND symbol in June 2020.
(Source: TMX Matrix, TMX Money)
Standard Uranium Ltd. (TSXV:STND)
Market cap: C$ 13 million
Current share price: C$ 0.20
Sector: Energy
Industry: Other Energy Sources
Standard Uranium Ltd is a Canadian mineral resource company which focuses on its uranium exploration in the Athabasca Basin in Saskatchewan, Canada. Its Davidson River Project in Athabasca Basin comprises of 21 mineral claims over 25,886 hectares, the company said in a release.
Founded in November 2017, Standard Uranium began trading on the TSXV exchange under STDN symbol on May 4, 2020. It initially announced C$ 3 million public offering and later raised it to C$ 4 million.
(Source: TMX Matrix, TMX Money)
Spectra7 Microsystems Inc. (TSXV:SEV)
Market cap: C$ 10.5 million
Current share price: $ 0.02
Sector: Technology
Industry: Semiconductors
Spectra7 Microsystems Inc is a consumer connectivity company and manufacturer of analog semiconductors aiming to provide fast bandwidth and clear resolution to consumer electronics developers in data centers, virtual reality, augmented reality, wearable computing etc.
The company was founded 2010 and began trading on the TSX Venture Exchange under SEV symbol on May 22, 2020.
(Source: TMX Matrix, TMX Money)
CloudMD Software & Services Inc. (TSXV:DOC)
Market Cap: C$ 75 million
Current share price: C$ 0.66
Sector: Healthcare
Industry: Healthcare Providers & Services
CloudMD Software & Services Inc is SaaS-based health technology firm, offering virtual medical care and helping patients connect with licensed Canadian doctors from mobile, desktop and tablet. The company has its own proprietary technology that takes into account a “combination of connected primary care clinics, telemedicine, and artificial intelligence.” On its official website, CloudMD claims to have 376 clinics, 3000+ licensed practitioners and almost 3 million registered patients onboard its platform.
The company was founded in 2013 and began trading on the TSX Ventures Exchange under DOC symbol on June 4, 2020.
(Source: TMX Matrix, TMX Money)
Freeform Capital Partners Inc. (TSXV: FRM.P)
Market cap: C$ 0.8 million
Current share price: C$ 0.15
Sector: Financial Services
Industry: Diversified Financial Services
Vancouver-based Freeform Capital Partners Inc. is a capital pool firm which focuses on asset management and evaluation of businesses to complete a qualifying transaction.
In its financial statement for the three months ended April 30, 2020, the firm announced an initial public offering of a minimum of 3,000,000 common shares at a price of $0.10 per share for gross proceeds of $300,000.
The company began trading on the TSX Venture Exchange under FRM.P symbol on June 19, 2020.
(Source: TMX Matrix, TMX Money)
Please note, there’s ultimately no guarantee of returns while investing in any emerging company. Due diligence of market and organisation is the ideal way to measure a company’s potential future. All companies registered on the TSXV listing have to meet minimum listed standards and provide certain public disclosures.
