The Canadian Securities Exchange’s (CSE) parent company, CNSX Global Markets Inc (CNSX Group), acquired the National Stock Exchange (NSX) for an all-cash consideration of AU$0.04 per fully paid ordinary share.
NSX shareholders overwhelmingly supported the transaction, with 94.8 per cent of votes in favour.
The deal, finalised through a court-approved scheme of arrangement, positions the NSX to replicate the CSE’s success in building a cost-effective, growth-focused marketplace, while opening the door to dual-listing opportunities for Canadian and Australian firms.
Under new management, NSX plans to become a “dynamic local alternative” tailored to the needs of early-stage companies in Australia and beyond.
NSX chairman Tim Hart said the exchange is planning to fill a gap in the local market.
“We welcome the successful completion of this transaction and look forward to giving the Australian market what it needs: greater choice for investors to build wealth and a lower cost of capital for companies to fund their growth, especially in the early stage and venture space.”
As part of the acquisition, NSX’s existing technology is set to be upgraded to provide enhanced functionality and efficiency.
Another priority under the new management involves expanding the NSX team with strategic new hires to broaden operational capabilities across all business lines, including trading, market data and new listings.
Australia’s NSX is also anticipating the appointment of current CSE CEO Richard Carleton to the NSX board of directors, who will help oversee key investments in the NSX and the execution of its strategic plan.
Carleton described the transaction as a landmark deal in the history of the Canadian Securities Exchange, the National Stock Exchange of Australia and the broader global marketplace for emerging companies.
“With this acquisition, the NSXA is positioned to replicate the CSE’s success in Canada and provide Australia with a public market platform that better meets the capital formation and liquidity needs of entrepreneurial firms,” Carleton said.
“We are confident that the NSXA is on the cusp of significant growth in corporate listings, to the great benefit of emerging companies and to Australia’s investment community.”
NSXA will continue to be operated locally and led by Max Cunningham, managing director and CEO, with CNSX Group providing financial, technical and strategic support.
“The partnership with the CSE not only takes the NSXA to the next level of strength and capability but also significantly enhances the health and competitiveness of Australia’s capital markets overall,” Cunningham said.
He believes the acquisition comes at a perfect time for Australia.
“A recent report from Macquarie Equity Research estimated that nearly 550 companies could potentially list on the NSXA and benefit from our low-cost platform, tailored compliance to suit small and venture-stage companies, customised listing support and broad investor access,” Cunningham said.
“The CSE–NSXA partnership seeks to meet the needs of these companies, their investors and others like them, and to provide users of Australia’s capital markets with genuine choice for listing, raising capital and building wealth.”
The exchanges have also highlighted the potential for inter- or dual-listing opportunities for Australian, Canadian and global companies.
“Multiple entities in the mining and early-stage tech space are exploring [this] already,” Cunningham added.
Following the transaction, CNSX Group now owns 100 per cent of both the CSE and the NSXA, as well as stakes in Tetra Trust Company (Canada’s first qualified custodian for digital assets) and DealMaker (an online capital raising platform).
