Our Featured Technology Company of 2012 Sees Share Price Jump - Now Up Roughly 140% Since our Introduction

*If an investor had bought $10,000 worth of Clean Seed's stock at our introduction price of $0.33 per share, those shares would now be worth approximately $24,000 based on Friday's closing price of $0.80 per share.

*Past performance is not indicative of future results.

Pinnacle Digest discovered Clean Seed Capital (CSX:TSXV) - an agriculture technology company - in 2012.

After visiting its headquarters, on more than one occasion, in April of 2012 we introduced our readers to Clean Seed Capital. It was our new client and only Featured Technology Company of that year. At the time, the tech company was pretty much unknown in the investing world, and it was thinly traded. However, we found its story and technology to be interesting given the global shortage of arable land. An excerpt from our introductory report on Clean Seed, released April 18, 2012, is below:

"Our Featured Company's No-Till planting system, comprised of patented technologies, took 5 years of development and roughly $6 million in R&D to create. This technology was developed by Dr. Noel Lempriere. Dr. Lempriere is an expert in the field of engineering and No-Till farming equipment. His expertise is so respected that he was invited to address the US senate special committee on sustainable agriculture. He is recognized as a pioneer in land restoration initiatives and conservation agriculture."

Fast forward to today: Clean Seed managed to weather the junior market downturn in 2013. Over the last 12 months its stock has made an impressive run.

Clean Seed's 1 Year Stock Chart:

Since our introduction, Clean Seed's market cap has increased by more than 200%. At the time of our introduction, Clean Seed Capital's shares sat at $0.33. On Friday, its shares closed at $0.80 and the company's market cap is now roughly $24 million.

Since our introduction, Clean Seed's technology has received significant media attention. It has also won innovation awards.

In June of 2013, Jessica Werb, of BC Business, reported:

"When Steve Jobs held aloft the first iPhone, the reception was nothing short of adulation. Now, one local company may have just done for farming what Jobs did for the humble phone. On June 19, Burnaby-based Clean Seed Capital Group Ltd. unveiled what it believes is the future of agriculture: the CX6 Trident Crossover Drill."

source: http://cleanseedcapital.com/press/now-one-local-company-may-have-just-done-for-farming-what-jobs-did-for-the-humble-phone/

Also in June of 2013, Clean Seed announced that it was awarded the prestigious People's Choice Innovation Award at the Farm Progress Show, the biggest agricultural trade show in Canada.

image: Clean Seed's Technology

Dear member,

The money has spoken. During arguably one of the most severe and longest bear markets in TSX Venture history, capital is flowing - at an alarming rate - into the Canadian tech sector (via TSX and TSX Venture listed tech stocks).

During a period that has seen mining investment decline, investment into the tech sector is increasing.

The Proof is in the Numbers

We've highlighted the consistent increase of capital raised by TSX and TSX Venture listed technology stocks for the past four years. Take a look at the year over year investment increase.

$387M of equity capital raised in 2010

$552M of equity capital raised in 2011

$1.3B of equity capital raised in 2012

$1.59B of equity capital raised in 2013

sources:

http://www.tmx.com/en/pdf/Technology_Sector_Sheet.pdf
http://www.tmx.com/en/listings/sector_profiles/technology.html

The amount of equity raised for Canadian publicly listed tech companies (on the TSX and TSXV) in 2013 quadrupled from 2010.

According to TMX Money, a total of $6.9 billion was raised by the 1,618 mining companies listed on the TSX or TSX Venture in 2013.

Tech companies were able to raise $1.59 billion in 2013; and there are only 169 Canadian publicly traded, tech focused companies on the two mentioned exchanges.

If Canadian mining companies on the two exchanges were raising capital at the same rate as their tech counterparts, they would have raised roughly $15.2 billion in 2013 (nearly triple what they were able to raise). With 1/10th the number of companies, tech was able to raise nearly 1/4th the capital of mining companies.

Putting the impressive surge of capital heading into the tech sector aside, the success ratio of tech companies vs. those from other sectors is also worth noting.

According to TMX.com: 35% of TSX technology issuers are graduates of the TSX Venture.

From a percentage standpoint, a TSX Venture technology company, according to our research, has a far greater chance of graduating to the TSX than a mining company. Granted, the mining sector has been in a horrific bear market, but the percentage of tech-based Venture plays that graduate to the big board is impressive nonetheless.

*Click here to read our recent report regarding tech funding on the Venture.

According to TMX.com, at the end of 2013 there were 64 technology companies trading on the TSX. So, somewhere in the neighborhood of 22 of these companies likely originated from the TSX Venture. This is important because there are only 105 listed TSX Venture technology focused companies.

One reason for the ongoing strength in Canada's public tech sector, and the high graduation rate to the big board, might be the TSX Venture listing requirements.

Some of the Listing Requirements for Industrial, Technology, Research and Development and Real Estate Companies: Tier 2 TSX Venture Exchange

* $750,000 net tangible assets or $500,000 in revenue or $2,000,000 Arm's Length Financing

* If no revenue, two year management plan demonstrating reasonable likelihood of revenue within 24 months.

* Adequate working capital and financial resources to carry out stated work program or execute business plan for 12 mo. following listing; $100,000 unallocated funds.

Click here to read the entire listing requirements for technology companies on the Venture.

After taking a look at the listing requirements, one can see how a TSX Venture technology company could be well prepared to survive in an economically challenging environment. And given the requirements of the TSX Venture, the exchange has created an environment that attracts more companies with viable business plans.

These factors, along with the continued trend of new money entering Canada's tech sector, make junior tech stocks on the TSX and TSX Venture worth monitoring.

In just a few days we will be introducing you to our new Featured Technology Company, one which grew its revenue and sales numbers in 2013 at an impressive clip. This company is operating in a sector of the technology space that has received much interest in recent months given the numerous buyouts within the industry. It is truly a unique growth story. Stay tuned...

All the best with your investments,

PINNACLEDIGEST.COM