Braden Fletcher, President and Head of Investment Banking,

ROTH CANADA

"As companies grow on Canadian markets, there is a necessity to access the deeper pools of US and international capital."

Could you provide some of your career background?

My career started in investment banking, and I have always had a passion for helping growth equity companies develop strategy, access capital and build for the long term. That took me from Investment Banking to Venture Capital, launching a startup and ultimately the TSX Venture Exchange, where we focused on improving the client experience by adopting technology, policy innovation and advocating for Canadian markets. Some of our accomplishments during those four years include digitizing the Personal Information Form (PIF) process, developing TMX’s LINX system for issuer submissions and engaging with the Exchange, rewriting the share-based compensation and shares for debt policies, and rewriting the Capital Pool Company (CPC) program – which is analogous to a special purpose acquisition company (SPAC) for early stage issuers. In addition to improving the client experience, we grew our domestic and international listing activity, saw increases to financing activity across the market from new industries like cannabis, psychedelics, crypto to bellwethers energy and mining where Canadian markets are globally dominant. As these companies grow on Canadian markets, there is a necessity to access the deeper pools of US and international capital. Joining Roth Canada was an opportunity to leverage the US based Roth Capital Partners platform to help companies do exactly that.

How can Roth help unlock international markets, such as the US, for Canadian miners?

US capital markets are somewhere between 20 and 35 times the size of Canadian capital markets. Roth Capital is the leading underwriter of companies under a billion dollars US market capitalization. Roth spent almost 35 years cultivating unique buy side relationships and developing a team that focuses on these growth equity names. Today, the firm has over 150 professionals across the US, including roughly 25 research analysts covering over 300 companies, an institutional sales force in Newport Beach and New York, and sector specific investment banking depth across all sectors. Last year, Roth Capital did over US$15 billion in financing activity across 148 transactions, with 2021 already beating those numbers. When we work with Canadian companies, we leverage this platform to help provide access to new prospective investors.

How will Roth Canada’s relationship to Roth Capital Partners support the Canadian mining sector?

As the Canadian affiliate, Roth Canada leverages Roth Capital’s platform to help mining companies with conference access and deal or non deal roadshows to new pools of capital.

Which is the best advice for companies looking to graduate from the TSX-V to the TSX?

Graduation from Venture to TSX adds credibility, companies become eligible for index inclusion, and there are benefits to being TSX listed over Venture or CSE listings – however it is not a panacea or guarantee of liquidity or premium valuations The reality is that a company's fundamentals matter most to investors, and then selecting a listing venue should be about accessing the deepest pool of capital possible – which is why we see so many Canadian listed companies pursuing a dual list in the US.

How can Roth support the mining sector as ESG gains significance?

Roth Capital Partners’ sustainability team has done close to US$30 billion dollars in transactions in the last 20 years. This has not been a recent opportunistic shift, this is a team of long-believers in solar, water and electric vehicles. Sustainability has been a core focus of our US partners. Canadian listed miners have always been leaders in water treatment, mine site reclamation and social efforts in jurisdictions they operate. The adoption of ESG reporting is providing these companies an opportunity to finally showcase these positive impacts.

What is sometimes missed is the importance of mining in supply chains – we have seen it with lithium as a component in batteries, however copper, cobalt, nickel, even silver are required to facilitate the transition to a low carbon, low emission, sustainable future. The International Energy Agency (IEA) forecasts energy demand to grow 19% by 2040, which cannot be delivered solely through renewables. I continue to believe nuclear is going to be a necessity. Global stockpiles are in decline, and that should be positive for uranium.