James Edward has specialized expertise in forming and utilizing Capital Pool Companies (CPCs) as a means of corporate capitalization and moving private companies to the public markets. A public vehicle is critical for high growth companies that wish to attract institutional investment or grow through acquisition. A publicly traded stock is another form of capital that can be used effectively for growth. The Capital Pool Company program is offered by the TSX Venture Exchange (TSX-V).
The CPC approach is an excellent avenue for private companies that wish to go public but do not wish to take on the risk and expense of an initial public offering (IPO). The CPC approach is less risky than an IPO in that it is a predictable process whereas an IPO is open to the vagaries of the financial markets.
The common drawback associated with CPCs is the small amount of capital that is raised directly by the CPC transaction (i.e. a maximum of $4.7 million). However, by and large, this sentiment is a fallacy. Typically, CPC qualifying transactions are accompanied by coincident private placements and / or private placements that are closed within a few months of completing the CPC qualifying transactions. Such concurrent financing bridges any funding gaps.
James Edward keeps an active inventory of CPCs that can be used for qualifying transactions thereby shortening the CPC qualifying transaction process by several months.
Sourcing CPCs is one of James Edward’s core competencies. Our Team will:
- Organize all stages of financing of a CPC
- Appoint investment dealer for public financing of CPC
- Identify, evaluate and negotiate a Qualifying Transaction (QT) between a CPC and a target company, including identifying a target company
- Organize concurrent financing for QT if required
- Provide public company guidance after closing of the QT
- Advise on capital markets matters
- Advise on board composition
- Provide or mentor management with ongoing business support including strategic investor and public relations.
