Why It Matters
Canadian issuers face persistent challenges in accessing capital, limiting their growth and competitiveness. Canadian markets for smaller companies are constrained by inefficient pricing, poor liquidity, and high-risk premiums. Meanwhile, U.S. markets offer a deeper investor pool, better pricing, and more liquidity—but listing on a major U.S. exchange is costly and resource-intensive.
OTC Markets provides a streamlined, cost-effective alternative for Canadian issuers looking to tap into U.S. capital without sacrificing existing resources. Because OTC trades settle on the home market, they contribute to liquidity where it matters most. The recent MLK Day market closure saw a 72% drop in home market volume for OTC-listed securities, underscoring the impact of U.S. investor participation.
With American investors actively seeking diversification and Canadian capital markets facing increasing tax and regulatory headwinds, an OTC listing offers a strategic advantage—enhancing visibility, expanding investor access, and informing a smarter U.S. growth strategy without the burdens of a full U.S. exchange listing.
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