, while positioning the CSE itself to compete more directly with the TMX Group-owned Toronto Stock Exchange .
The senior tier will be “very heavily dominated” by cannabis companies with operations in the United States, in part because TSX rules prevent any of its issuers from being in violation of U.S. federal law. But the tier will also include companies operating in the life sciences and mining industries, Mr. Carlton said.
“The ultimate object of the exercise here is to ensure that senior companies receive a lower cost of capital,” he said. “Just as it is a lower cost of capital for companies listed on the Toronto Stock Exchange than it is for companies listed on the TSX Venture, we will be tracking very carefully whether companies on our senior tier are in fact rewarded with a lower cost of capital versus companies that are on the regular CSE market.
“Our job is to provide an environment where the cost of raising funds is as low as possible and if that happens to be more competitive than other markets that they could list on in Canada then that is a very powerful indication that we are on the right track,” Mr. Carlton said.