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The framework for nurturing junior companies through Canadian stock markets has been largely gutted
From the start, ZS2 Technologies Ltd. was built to go public. The Calgary-based business was founded by stock market veterans who put in place the building blocks of a publicly traded company: governance, oversight and financial reporting. When the time was right, an initial public offering would provide the exposure and capital to take it to the next level.
But the plan has changed. ZS2 is no longer destined for the Toronto Stock Exchange. ZS2 specializes in high-tech, sustainable building materials. Demand comes mostly from the U.S. construction industry. There is talk of manufacturing stateside, where ZS2 recently incorporated. There are tax advantages to consider. And calls are coming in from U.S. investors hunting for promising growth stories.
“They have an appetite for risk and they see the potential of what we’re doing,” said Scott Jenkins, ZS2′s co-founder and chief executive officer. By contrast, “access to capital in Canada has been challenging, which is shocking.”
It is hard to make sense of that disparity. ZS2 is fast-growing, technology-driven and sells a cleaner product to a huge industry. It checks many boxes that investors are looking for. Its flagship product is a low-carbon cement – the traditional limestone variety is one of the world’s most emissions-intensive products. ZS2 even uses waste water from Alberta mining and energy industries in its manufacturing process.
For the rest of this article: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-why-canada-cant-grow-its-corporate-minnows-into-sharks-any-more/