How can I participate in an IPO in the CSE (Canadian Stock Exchange) as a US citizen & Resident.

Discussion in 'Trading' started by CannabisIPO253, Nov 8, 2018.

  1. I am wanting to participate in the Acreage Holdings IPO which is going public on the CSE (Canadian Stock Exchange) later this month but haven't been able to figure out how to do so. I am a US resident and Etrade and Robinhood--which I have accounts with-- do not allow me to participate in this IPO, because I am a US resident. Which brokerages should and can I use?
     
  2. Unless you're a qualified investor and are offered "friends and family" it very difficult and you'll most likely be subject to a lockup. Try talking to the Canadian underwriters.
    We just had a company we know come public on the CSE and we were offered f and f with a six-month lockup. It's a cannabis edibles company.

    Good luck.
     
    Last edited: Nov 8, 2018
  3. How do you mean by lockup and Canadian underwriters? How would I become a qualified investor?
     
  4. Qualified investor means at least $1,000,000 net worth excluding primary residence - and a couple of hundred thousand in income over the last couple of years.
    Lockups are generally 6 months - so you won't be able to sell until post lockup.
    Do you know someone inside the company to get you on to f and f list?
    You may also be required to buy the f and f minimum and that varies.
    So overall it's gonna be a bit pretty difficult if you are a small investor.

    Canadian underwriters would be the brokerage houses bringing(underwriting) the deal. If you go the CSE site and look at the trading in the cannabis name you'll get a sense of who brings these kinds of offerings.

    If you are not a qualified - sometimes called accredited investor - then forget about a shot at the IPO.
     
  5. Here are some firms to try if you are accredited.

    Bid Broker Bid Size Bid Price Ask Price Ask Size Ask Broker
    Instinet Canada Limited 300 6.7600 6.8000 2,500 PI Financial Corp.
    Instinet Canada Limited 200 6.7500 6.8500 5,000 Anonymous
    RBC Capital Markets 900 6.7500 6.8900 800 Anonymous
    Mackie Research Capital Corporation 1,000 6.7300 6.9000 1,100 Industrial Alliance Securities Inc.
    BMO Nesbitt Burns Inc. 3,000 6.7100 6.9000 500 Anonymous
    Pershing Securities Canada Limited 1,900 6.7000 6.9000 500 Haywood Securities Inc.
    PI Financial Corp. 1,500 6.6500 6.9300 600 Anonymous
    Instinet Canada Limited 300 6.6200 6.9400 2,600 Anonymous
    Instinet Canada Limited 1,000 6.6000 6.9500 2,000 Instinet Canada Limited
    Instinet Canada Limited
     
  6. TommyR

    TommyR

    forget about cannabis names in Canada for sure
     
  7. Sorry I don’t understand, but what does it mean to be accredited? Is it easy and fast to become accredited? Are you suggesting I should open accounts with those firms to invest in Canadian stocks? Lastly, could I use my Canadian friend’s address for my residency address for a Canadian brokerage account?
     
  8. How do you mean? All I want to do is to invest in the IPO of Acreage Holdings which is an American company, but all I know now is that they are planning to IPO on the CSE in the next month or so.