Attaining and sustaining growth in the U.S. oil and gas industry requires considerable capital. While attracting investor support within the United States is often a company’s first choice, pursuing capital within the Canadian public markets also merits consideration, according to a recent Oil & Gas Financial Journal article, Variety of capital options in Canadian public markets, co-authored by Dale J. Jensen, partner-in-charge of Weaver’s SEC practice group.
The Canadian market is lucrative because:
- Canada’s economy has sufficient scale and stability to support investment activity.
- Time zone differences and other concerns associated with conducting international commerce are minimized.
- Resource-based industries comprise a large portion of the Canadian economy in general and the Canadian stock exchanges in particular.
- The average capitalization of a public company in Canada is lower than in the United States.
- Companies on the Canadian exchanges face lower compliance and governance requirements that are applied on a graduated scale, based on company capitalizations.
- Canadian-based Foreign Asset Income Trusts provide an additional option for raising public capital in Canada.
For more information on the various capital options available in Canada, read the full article by clicking here.