In the ever-evolving landscape of financial exchanges, a significant transformation recently unfolded in Canada. The NEO Exchange, a prominent player in the market, was acquired and subsequently rebranded as CBOE Canada.
This strategic move has brought new perspectives and opportunities to the forefront of the industry. Erik Sloane, the chief revenue officer (CRO) of CBOE Canada, provided valuable insights as he prepares to address the audience at Benzinga’s Cannabis Capital Conference.
One of the defining features of this transformation is CBOE’s distinctive position as the Tier 1 stock exchange for cannabis issuers with U.S. operations. NEO’s integration into CBOE has bolstered the latter’s capabilities, granting it the status of a registered securities exchange along with three alternative trading systems.
At the heart of CBOE’s philosophy lies a commitment to creating an inclusive trading experience: Sloane emphasizes the significance of catering not only to institutional investors but also to natural and retail investors and wealth managers. The goal is to forge a “seamless and efficient” trading environment that has the potential to span the globe.
As of now, the influence of this exchange stretches across various corners including the U.K., Amsterdam, Australia, Japan and the U.S.
Navigating Market Flows And Delivering Results
Sloane identifies a shift in market dynamics over the past year. He pointed out that the predictability of macro environments has spurred conversations about “the need, interest and capability to raise capital” across different sectors. Investors are increasingly looking for companies that can deliver tangible results.
The focus has moved beyond mere investment opportunities to the evaluation of a company’s ability to fulfill its promises and deliver on its stated objectives –aka the fundamentals of any business.
This change marks an end to the trends of the past.
Sloane said 2022 facilitated the streamlining of organizational structures, validation of strategies and a renewed approach to communication with investors. The emphasis has shifted to setting and achieving targets, thereby establishing a track record of execution. Whether it’s generating revenue, securing initial funding, or achieving positive cash flow, CEOs are increasingly being held accountable for translating their vision into reality.
Despite this global outlook, Canada remains “the de facto home” for cannabis businesses, offering access to banking services and an investor base that “understands and values” the business complexities.
“As a business, as a team, the promotional effort. In the industry, not being hurt anymore is about results. And that’s something that you need to lay out, even if it’s maybe not what your shareholders want to hear,” Sloane says.
Sloane says investors should not just focus on a single stock but rather consider investing in ETFs as a way to diversify their risk and reduce their exposure to any one company.
He notes that investors should do their research and understand the companies they are investing in by checking out the track record of the management team, the financial results of the company, and the growth prospects for the industry.
Finally, Sloane says that investors should be aware of the risks involved in investing in cannabis stocks. The cannabis industry is still relatively new and volatile, so there is a risk of losing money.
Referring to the Benzinga Cannabis Capital Conference, Sloane praised the “pretty incredible” community that consistently gathers at these events. “We look forward to coming back every time, we’re proud to support the event as we remain a very motivated, hungry, ambitious, senior exchange in Canada, keen to be partners in the business.”
The upcoming Benzinga Cannabis Capital Conference in Chicago this September 27-28 will provide a valuable opportunity to gain insights from experts and further navigate the cannabis landscape. So do not miss it! Tickets HERE.
Photo courtesy of CBOE Canada.
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