Accessing public capital can be challenging, particularly for management teams with little or no experience with public capital markets. James Edward assists private companies develop and then execute a capital strategy; transitioning from private to public status. James Edward can seamlessly manage all or select stages of the going-public process so that clients can focus on the daily operations of their business.

Clients have several choices when transitioning to the public markets. James Edward is expert at utilizing the Capital Pool Company (CPC) program offered by the Canadian TSX Venture Exchange to obtain a public listing for a private company. We also provide clients with a full range of services if they choose an Initial Public Offering approach to taking their private company public.

Capital Pool Companies

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.

Initial Public Offering

Where an Initial Public Offering is the desired approach for taking a private company to the public capital markets, James Edward will work on behalf of the company to direct and manage the public transaction. This process may include:
  • Selection and management of investment underwriter(s)
  • Preparation of “Road Show” materials
  • Prospectus development and vetting
  • Management of auditors and legal counsel
  • Selection and management of Investor Relations and Public Relations teams